Hello Reader!

Today, you’ll learn about a key document that protects your investment and why notes can be a smarter alternative to owning rental properties. If you’ve ever wondered why some investors prefer notes over managing tenants, this issue will give you the answer.

Notes Concept🧠

When you invest in a note, the deed of trust is what protects you.

A deed of trust is the legal document that:

• Ties the loan to the property
• Secures your note with real estate
• Gives you rights if the borrower stops paying

Think of it as the collateral agreement.

It’s signed by the borrower and recorded against the property.

That’s what makes the loan enforceable and gives the note its value beyond a promise to pay. With it, the property backs the loan.

Real World Experience💰

About 90% of my deals are in deed of trust states like Texas, Missouri, North Carolina, and Tennessee.

Why? Because in those states, if a borrower stops paying, foreclosure does NOT go through the court system.

That usually means a faster and more cost-efficient process.

For example, I’m currently working through a foreclosure in Arkansas where the borrower hasn’t paid in over a year.

Since it’s a deed of trust state, foreclosures are done non-judicially with a trustee.

Uncomplicated foreclosures can often finish in about 3–6 months from start to sale.

If that same note were in a judicial state like New York, it could take years in court with significantly higher legal costs.

Mindset Shift 🔄

Most people assume rentals are the safer way to invest in real estate because you “own the property.”

But owning the property doesn’t eliminate risk.

Let’s look at the difference.

Rentals

You own and operate the property
​Vacancies, repairs, and management directly affect cash flow​
You’re responsible for solving all problems

Notes

You own the loan tied to the property
No tenants, no repairs, no day-to-day management
​Your role is to collect (secured by a deed of trust), not operate

Both are backed by the same asset class.
But one relies on operational performance, and can bring you unexpected expenses while the other is built around defined payments and a more predictable structure.

Safer isn’t about what you own, it’s about what you’re responsible for.

And trust me, with rentals you have plenty of things to worry about.

To your success,

Sierra Davis

P.S. If interested in investing this year, I offer 1:1 coaching to work together as you learn and get your first deal. Apply for Coaching​