Buying Discounted Notes -

Foreclosing on a non-performing note can be expensive and time-consuming.

First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits buying discounted notes

When a lender (like a bank or private seller) wants to free up cash, they may sell their mortgage notes at a discount. Foreclosing on a non-performing note can be expensive

If the property value drops below your investment amount, your "security" is weakened. buying discounted notes

AI responses may include mistakes. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets