Stocks vs Notes: Which one is better?
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Welcome to the first edition of the Wealth with Notes Newsletter! This newsletter is focused on one thing: helping you understand and use notes to build long-term income. Every Tuesday morning, you’ll receive:
Let’s keep it simple. Notes Concept🧠What is actually a Note? A note is the debt side of real estate. Instead of owning the property or dealing with tenants, you own the loan tied to the property and get paid by the borrower. Here’s the key difference from a mortgage: It’s the same loan — just opposite sides. Notes can generate monthly cash flow, interest income, or a discounted payoff without tenants, renovations, or midnight calls. Real World Experience💰Below is a real note acquired by one of our investors, backed by a residential property in Texas. Investor funded the deal with a $35,000 loan at 12% interest, interest-only, for 24 months. That means:
Total target return: $43,400 No tenants. No renovations. Just defined payments and a defined exit. Mindset Shift 🔄Lets compare the main points of these two ways of investing your money: As you can see when it comes to cash flow and risk, notes play a different game. A better game than stocks. Notes are built for predictable cash flow, since payments are defined in the contract. Risk is reduced because the loan is backed by real estate, giving you collateral if the borrower stops paying. Stocks rely on price movement and you don't really have any collateral. They can go to zero. 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 note. Apply for Coaching
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Wealth With Notes Newsletter
Hey Reader! A couple years ago I started investing on a few small performing notes and kept reinvesting every dollar of income until I hit $5,000/month (my goal at that time). Let’s walk through the strategy behind it. Notes Concept🧠 When you invest in a note, it matters big time whether that note is performing or not. Performing Notes = Borrower is paying on time. Non-Performing Notes = Borrower is NOT paying on time. Typically 90 days or more, putting the loan in default. Ideally in your...
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...