Buying Discounted Notes May 2026

Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property.

You collect interest on the full $100,000 balance, significantly increasing your effective yield. buying discounted notes

Foreclosing on a non-performing note can be expensive and time-consuming. Borrowers have stopped paying

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

💡 Unlike being a landlord, there are no "tenants, toilets, or termites" to manage.💰 Higher Yields: Buying at a discount creates an automatic gain in equity and a higher ROI than traditional bonds.🛡️ Asset Security: Your investment is backed by a physical asset that can be liquidated if necessary. Risks to Watch For

You must verify the property's value, the title's clarity, and the borrower's payment history before buying.