How to Invest in Notes

Investing in real estate doesn’t always mean buying property. You can also buy notes, which means investing in other people’s mortgage debt. This method has become increasingly popular in the wake of the housing bubble as many mortgage defaults were sold off at a discounted rate by banks and funds looking to unload the non-performing debt. Individual investors have had an opportunity to invest in those relatively inexpensive notes in hopes of extracting up to 30 or even 50 percent ROI. On today’s episode of Big Money Real Estate, I’ll chat with real estate blogger and investor Joel Cone, who has written about investing in notes for U.S. News & World Reports.