The economy may be improving, but the market is still flooded with nonperforming notes if you know where to find them. (I’ll have a blog about sourcing posted soon.) And although more people are becoming comfortable with the idea of holding notes rather than managing rental property, the field is still far from crowded.
One of the advantages to note investing is volume. No matter how much time you have to put into your investing business, you are still limited by the number of hours in a day. Compare the number of notes you can handle in one work week with the number of properties you can manage. Notes always come out ahead because they take less time to manage. Remember, you are not the landlord.
In addition, if you outsource, loan servicers are much more affordable than property managers, resulting in far less of your profit being cut out. Performing notes come with the ability to bring in monthly cash flow, just like a typical rental property.
With note investing, you have more time and make more money. That is another reason why they are an intelligent investment.
~ Jay Tenebaum