Hey Reader,

I used to keep my extra cash in a money market account.

It felt responsible and safe.

My bank even sent me a little congratulations email when I hit a certain balance.

Then I bought my first note and saw what that same money could actually be doing.

I never looked at a money market or CD account the same way again.

This week, I want to make sure you understand the key differences between those traditional accounts and notes. Plus, introduce a very important person you should know in the notes world.

Notes Concept🧠

When you buy a note you are not buying a property.

You are buying the right to receive payments from a real human being who agreed to pay back a debt.

That human being is your Payor.

And understanding your payor is really important before buying any note.

Here is what you need to know:

• Payment history: Have they been paying on time consistently or do they miss payments.
• Motivation: Do they live in the property? Did they make a down payment? Do they have skin in the game?
• Communication: When something goes wrong, will they call you or disappear?
• Life stability: Employment, background, debts, etc. Stability in their life typically means stability in their payments.

Keep in mind you are not their landlord. You are their bank.

They pay. You collect.

But before you ever buy a note, you should know exactly who is on the other end of that agreement.

Real World Experience💰

Lets say you have two notes with same property value and interest rate. Same monthly payment of $550.

Now is your time for due diligence...

​

Note A: The payor has been in the property 4 years. Made a $15,000 down payment and never missed a payment

Note B: The payor moved in 10 months ago with a $6000 down payment and missed 2 payments already.

On paper both notes look similar.

But I, and I am certain you too, will chose Note A because of the payor. Note A is worth significantly more.

Note A's payor has everything to lose if they stop paying. Four years of equity.

Note B's payor has almost nothing to lose.

So before you buy any note ask yourself one question.

Why would this payor keep paying? If you cannot answer that with confidence, look for another deal.

Mindset Shift 🔄

Your bank is very good at one thing.

Making you feel safe while quietly keeping the best returns for themselves.

CDs and money market accounts sound responsible. Stable. Smart.

But look at what the comparison actually says:

And with Notes, if you buy them at a discount, you can create an extra yield.

CDs and money markets keep your money safe, but at what cost? You might be leaving a lot of extra cash on the table.

Check out the first episode of the Wealth With Notes Podcast available on Apple Podcast and Spotify

A Different Way In Apr 10 · Wealth With Notes Podcas... 7:47   ​

To your success,

Sierra Davis

P.S. If you are done playing by rules that were not written for you, book a free strategy session with a wealth coach here. They will show you your actual financial freedom date and exactly how to get there: Meet with a Wealth Coach​

This is for educational and informational purposes only. Nothing contained here constitutes financial, legal, investment, or tax advice. All investing involves risk, including the possible loss of principal. Individual results will vary. Please consult a licensed financial advisor, attorney, or tax professional before making any investment decisions. Some links in this email may be affiliate links. If you sign up through my link, I may receive a commission at no additional cost to you.