profile

Wealth With Notes Newsletter

I thought I had my money figured out

Published about 1 month ago • 1 min read

Hey Reader,

A few years ago I thought I had my money figured out.
​
High-yield savings account. Dividend ETFs. Rentals and CDs. A little bit of everything. Diversified, right?​
​
Then I discovered notes and since I have experience in Data Science I ran the numbers on everything I was already invested in.
​
​What I found made me quietly move my money.​
​
Not because the others were terrible. But because once you see the difference, it is really hard to unsee it.
​
That is what this issue is about.

Notes Concept🧠

Annual Percentage Yield or APY tells you how much your money grows in one year, including compounding.

APY allows an investor to compare different returns for different investments on an apples-to-apples basis.

So if you are deciding between two different investments comparing the APY will tell you which one will earn you more money.

APY is your starting point. But it is not the only thing that matters and we will get into that next.

Real World Experience💰

A couple years ago I had $30,000 split across three places. A high-yield savings account, a dividend ETF, and a performing note.

Same amount of money. Very different stories.

That is the part APY alone doesn't tell you.

The savings account and the ETF had variable returns — the bank and the market decided. The note had a fixed return, and that is why I started focusing on notes.

Mindset Shift 🔄

Here is where a lot of investors get fooled including me for some time.

You see a dividend stock with a 80% yield and think that it beats everything. Why would I bother with notes?

video preview​

Dividend yields can be cut anytime and stock prices can drop. With notes, your rate is fixed and your investment is secured by real estate. Nothing changes unless you decide it does.

You work too hard for your money to let the market decide what it's worth. Notes hand that control back to you.

And it can be passive as well. You invest on a performing note today and start collecting monthly payments without having to watch the market every single day.

Check out the latest episode!

600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
​Unsubscribe · Preferences​

Wealth With Notes Newsletter

Sierra Davis

Discover How Smart Investors Earn 10-15% Returns from Real Estate Without Being Landlords

Read more from Wealth With Notes Newsletter

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...

about 7 hours 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...

6 days 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...

13 days ago • 2 min read