Hey Reader,

A mentee came to me last month with a deal that looked perfect on paper.

Great interest rate. Solid property. Motivated seller. She was ready to wire the money.

I looked at the payment history and stopped her. The borrower had only made 4 payments.

I told her one word: unseasoned. She passed on the deal and six months later the borrower defaulted.

That one word saved her thousands of dollars and this week I am going to make sure it saves you too.

Notes Concept🧠

Note seasoning refers to how long a borrower has been making payments on a note.

Think of it like a track record.

A brand new note with zero payment history is unseasoned.

A note where the borrower has been paying consistently for 12, 24, or 36 months is well seasoned.

On a seasoned note you can see a pattern. It tells you:

• Payment history
• Borrower reliability
• Risk level
• Pricing power

Most note buyers want to see a minimum of 12 months of consistent payments before they feel comfortable pulling the trigger.

Real World Experience💰

Let me show you a real example.

I bought a note two years ago, and the borrower had been paying $600 a month like clockwork.

24 payments on time = Perfect seasoning

I needed capital for a new deal, so I decided to sell the note after holding it for 18 months.

Because the note was well seasoned, buyers competed for it, and I sold it for a good price because the risk was low.

The new buyer was happy because they knew that they were acquiring a performing note with consistent payments.

Mindset Shift 🔄

Whenever Bitcoin goes up dramatically, everyone starts talking about it. And I get it. The returns may look incredible sometimes.

But here is what the conversation usually skips:

📉Bitcoin went down 70% in 2022 while Notes payments kept coming

It gives you zero monthly income and nothing backs it. Performing notes are backed by real estate and pay you monthly.

Your return in Bitcoin is decided by market sentiment and speculation. With performing notes, the expected terms are defined upfront, though actual results depend on borrower performance.

​

Bitcoin is a bet. Notes are a system.

You already know there are two ways to be in the note space.

• Path 1 is learning to do it yourself, building a portfolio you find, underwrite, and manage on your own.
• Path 2 is letting someone else do the heavy lifting while you stay completely passive.

I just took Path 2 to a whole new level. If that sounds like something you want to be a part of, just hit reply and let's talk.

To your success,

Sierra Davis

P.S. Did you know you can use your IRA or 401k to invest in notes? Directed IRA is offering members of the Wealth With Notes community $50 off to get started with a self-directed retirement account. If you have retirement funds sitting on the sidelines, this is worth looking into. Click here to learn more​

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.