Hey Reader, If you've ever thought about investing in a private fund or wondered what that even means, this email is for you. It's also why I'm hosting a free live class on Wednesday, October 1st at 4PM CT. On September 16th, the Fed raised rates for the first time since 2023. Same news for everyone. Very different outcomes depending on the fund you're in. First, let me provide context on what a private fund is and why investors choose them. Most of us don't have the time, expertise, or...
about 1 month ago • 2 min read
Hey Reader, I am building my investment company around one assumption: Eventually, something will go wrong. Maybe a borrower stops paying, a document is missing, a closing gets delayed, a servicer makes an error, or the property value comes in lower than expected. That does not automatically make it a bad investment. It means you need to understand the downside before your money is already committed. When I evaluate a mortgage note, I am not only asking what the return could be. I want to...
about 2 months ago • 1 min read
Hey Reader, Better Mortgage and Coinbase just made their token-backed mortgage program broadly available. The headline is obviously going to be: “Use Bitcoin to buy a house.” But as a note investor, that is not the part I find most interesting. I’m looking at the debt structure. Here’s what they built. The borrower gets a traditional conforming first mortgage. Then there is a second loan used to fund the down payment. That second loan is secured by the borrower’s pledged Bitcoin and a second...
2 months ago • 2 min read
Hey Reader! If a mortgage note deal landed in your inbox tomorrow, would you know what to do with it? That is what we are working on inside the 3 Day Note Investor Challenge. A few people received the early VIP offer. Now registration is officially open to everyone. From August 5- 7th, you will: Day 1: Build your note investing strategy and buy boxDay 2: Analyze a real mortgage note dealDay 3: Decide whether to buy, pass, or ask for more information, then build your 90-day action plan The...
3 months ago • 1 min read
Hey Reader, Last week, the City of St. Louis filed a lawsuit against a real estate investor over a strategy called the “slow flip.” The idea sounds simple. Buy inexpensive homes. Sell them to buyers using a contract for deed (Check out an article I wrote about this). Let the buyer make monthly payments toward ownership. In theory, this can create a path to homeownership for people who may not qualify for a traditional mortgage. But according to the lawsuit, there was a major problem. The City...
3 months ago • 1 min read
Hey Reader, When I look at a seller financed note, there is one question that matters more to me than almost any other. How was the borrower qualified for this loan? The reason I focus on it is because every other number on a listing is a snapshot. The property value. The interest rate. The LTV. The payment history. All useful. None of them tells me whether the borrower could actually afford the loan when they took it out. The qualification process does. A note where the borrower put $500...
4 months ago • 2 min read
Hey Reader, Every 18 months, real estate has a new "hot" strategy. Short-term Rentals Wholesaling BRRRR RV Parks Sober living homes Each one got hyped, pulled in a wave of investors, then cooled the moment the conditions that made it special shifted. Mortgage notes have never been on that list. Not because they're boring (they are), but because they don't depend on the conditions that make trends work. A short-term rental needs tourism, friendly ordinances, low rates, and the right platform...
4 months ago • 1 min read
Hey Reader, If you're someone who's heard how the wealthy borrow against their assets instead of selling them, you already understand the idea behind this. The rich rarely sell what's working. They borrow against it. Buy an asset, borrow against it, keep it growing, that's the playbook some people call "buy, borrow, die." The asset stays theirs while the borrowed money goes to work somewhere else. You can do the same thing with a note. It has an intimidating name: Hypothecation It's simpler...
4 months ago • 1 min read
Hey Reader, If you're someone who likes knowing how the work actually gets done before you trust it, this one's for you. People assume AI in investing means a bot picking trades. That's not how I use it. I use it for the data analysis & underwriting, the work that takes up most of my time. Because here's the truth, I want everyone to know Note investing is more passive than being a landlord, but it is not truly passive. So here is the process for me these days. It usually starts with a loan...
4 months ago • 2 min read