Be the Landlord or Be the Bank

When I say, “You could be the bank,” I don’t mean you have to own a big building and hire bank tellers, security guards, and all that.

I mean you could own seller financed notes and get money flowing to your mailbox every month for years to come.

It’s so easy you can do it from your easy chair. Best of all, you wouldn’t have the headaches of landlording. All of us would choose to be the bank instead of being a landlord IF we understood how to do it. 

How does a person get started in the note business if they don’t have a lot of investment capital? It’s also much easier than you think. You can borrow the money to buy notes in much the same way as you would borrow money to buy rental properties. The note is considered an income-producing asset just like a rental property, so the note you buy is the collateral for the loan you get to buy the note. If you don’t want to borrow from a traditional lender, you can easily get the money from your self-directed retirement account.

The official “50-cent term” for the process of using the note you own as an income-producing asset to borrow money is called “hypothecation.” (Feel free to drop that word into conversations at the country club to impress your friends.) Borrowing money on a note is a great way to go from owning one note to owning an entire portfolio of notes. You could be living the lifestyle you’ve always wanted with the income you’ve dreamed of to enjoy time with your family and other pursuits without being at the mercy of your boss.

The current pandemic has made many people get left behind by traditional lenders because they can’t qualify for loans. As an entrepreneurial note investor, you can solve problems traditional mortgage companies can’t, so you’ll make the money instead of them.

Is now a great time to launch a career as a note investor? Absolutely, 100% yes! We’ve taught thousands of people how it’s done at NoteSchool and we can do the same for you.