CalculateRealEstateROI

Strategy

Note Investing

Buying mortgage notes (performing or non-performing) at discount to par, capturing yield or workout upside.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Performing notes

Discount-to-par cash flow at higher yield than direct rentals.

Non-performing workouts

Modify, foreclose, or take deed-in-lieu for substantial discount entry.

Examples

  • $60k non-performing note acquired for $25k, workout to $80k property value.

Practical applications

  • Investors with legal/financial sophistication.
  • Hedge against direct ownership risk.

Common mistakes

  • Underestimating workout legal complexity.
  • Buying without title verification.