Home
Foreclosing on a non-performing note can be expensive and time-consuming.
Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property.
You buy a note with a $100,000 balance for $70,000.
The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes
You collect interest on the full $100,000 balance, significantly increasing your effective yield.