Hi everyone, I’m Jenny. I’m new to the community and I’m here to learn more about mortgage notes and how experienced investors are using them to create cash flow without the usual tenant and property management headaches. I’ve been involved in property deal sourcing, so I’m curious about how note investing can fit alongside traditional property strategies. There’s clearly a lot of experience in this group, so I’d rather learn from people actually doing the deals. If you’ve been investing in notes for a while, what’s one thing you wish someone had told you before your first note deal? I will genuinely love to hear the lessons that only experience can teach.

I'm curious what the preference is from the group and why. Please vote on your preference and comment on why that's your choice.

Share why you made your choice in the comments.

Sold our laundromat yesterday - a weight has been lifted off my shoulders! It was a fun business when I didn’t live an hour away, but it became a hassle after moving and having kids. We found a great operator who took over the business (and signed a long term lease for the space with me, I’m still the building owner) and I’ve never been more optimistic! Focused 100% on FIXnotes - let’s go!!

I purchased this reperforming 2nd mortgage back in 2023 on a property in Orlando, FL. 8-months after I purchased the mortgage, I did a Collateral Assignment with one of my investors. Eventually selling the mortgage to the same investor. Here are the Deal Numbers: - Property FMV: $475k - 1st Mortgage Balance: $225K (Current) - Note Purchase Price: $28,425.91 (Purchase Yield 13.7%) - 2nd Mortgage Loan Balance Purchased: $50,943.06 - Borrower Payments Made: 4 - Borrower Payments Purchased: 356 - Monthly Loan Payment: $350.00 - Current Interest Rate: 7.2901% I collected 8-monthly payments of $350 (8 X $350 = $2,800 received), I then did a 2-Year Collateral Assignment with one of my investors. A Collateral Assignment of Mortgage is a legal agreement where an investor gets a security interest in another investor's mortgage loan and its underlying collateral (like property) to secure a loan between the two investors, essentially pledging the mortgage as collateral for a loan. - 2-Year Collateral Assignment Amount: $30,000 (Money lent to me, from my Investor) - Monthly Payments to my investor: 24 - Monthly Interest-Only Payment to my investor: $250 (10% Yield to my Investor) I used an existing Reperforming 2nd Mortgage as collateral to borrow $30k from my investor for a 2-Year period. The terms between my investor & I, were 24-monthly payments at 10% interest-only, which is $250 per month. After 24-months I owed my investor their full principal amount back, the $30k. For 24-months I collected a $350 payment from the borrower of the mortgage loan and paid my investor $250 a month. So, I still received $100 a month, after I paid my investor their $250 (24 X $100 = $2,400 received). I could have paid my investor back his full principal amount of $30k, when the Collateral Assignment was finished, but I decided to sell him the mortgage note instead. - Investor's Note Purchase Price: $36,908.72 (Purchase Yield 10%) - Since I owed my investor $30k, they only had to come to the closing with $6,908.72 - 2nd Mortgage Loan Balance Purchased: $49,516.68 - Borrower Payments Made: 36 - Borrower Payments Purchased: 324 - Monthly Loan Payment: $350.00 - Current Interest Rate: 7.2901%