How To Buy Notes With No — Money

"I can't give you $50,000 today," Elias said honestly. "But I can give you a " The Structure

Buying notes (specifically real estate promissory notes) with no money down is a classic "creative finance" strategy. It relies on finding a problem to solve rather than just a price to pay. how to buy notes with no money

He found a private investor, Mrs. Gable, who had lent $50,000 to a fix-and-flip artist three years ago. The flipper had vanished, the house was rotting, and Mrs. Gable was tired of the taxes. She held a "performing note" that had gone "non-performing." "I can't give you $50,000 today," Elias said honestly

He secured an option to buy her note for $30,000 (a discount, since it was non-performing). He gave her $10—literally a ten-dollar bill—as "earnest money" to make the contract legal. He found a private investor, Mrs