When Emily Courtright and Adam Roberts joined NoteSchool at the beginning of 2023, they were already seasoned real estate investors. With 12 years of experience in single-family and multifamily investments under their belts, this husband-and-wife team was looking for a way to diversify their portfolio and increase their cash flow. Little did they know that their decision to explore note investing would lead them to a whole new level of financial success and stability.

The Journey Begins: From Multifamily to Notes

Emily and Adam’s story began in the world of traditional real estate investing. “About 12 years ago or so, we started buying real estate investments in the single-family world,” Adam explains. Over time, they transitioned into larger multifamily apartment complex acquisitions and syndications.

While their multifamily investments had been successful, the couple began to notice some challenges in the market. “We’ve now been through almost a full real estate cycle,” Emily notes. “When you get to live through that, you have all sorts of experiences, both financially and operationally.”

The couple realized that as property owners, they were subject to various market forces beyond their control – interest rates, insurance premiums, resident employment, and staffing challenges, to name a few. This realization led them to seek out alternative investment strategies that could provide more stability and control.

Discovering NoteSchool: A Mindset Shift

Emily and Adam were introduced to NoteSchool through another mastermind group. “My mentor in that mastermind is a member of NoteSchool,” Emily recalls. “When I learned about his notes business, I said to myself, ‘If he learned from NoteSchool, then I want to learn from NoteSchool.'”

After attending their first NoteSchool session, the couple knew they had found something special. The concept of being the lender rather than the property owner resonated with them, offering a new perspective on real estate investing.

Taking Action: From Learning to Investing

One of the most impressive aspects of Emily and Adam’s journey is how quickly they took action. Within two months of joining NoteSchool, they were ready to make their first note purchase. “We had sold a real estate asset prior to that and had a chunk of money that still needed to be invested,” Emily explains. “As the market was shifting, it was very obvious that the real estate investments were not going to be cash flowing like we wanted them to.”

Utilizing NoteSchool’s resources and education, the couple felt confident and prepared to enter the world of note investing. They used the NoteSchool trade desk to select their favorite five notes from a tape of 11 and made their first purchase.

Building a Diverse Portfolio

In just over a year, Emily and Adam have built an impressive portfolio of 25 notes. Their approach to note investing is characterized by careful analysis and a focus on the “full body of work” of each investment opportunity.

“For us, it’s not just about yield,” Adam explains. “We look at the velocity of the cash flow coming back to us, the location of the investment, and the overall return on investment, including potential discounts.”

This strategy has paid off. Out of their 25 notes, three have already paid off in full, demonstrating the potential for early returns in note investing.

The Power of Partials and Recapitalization

One of the key strategies Emily and Adam have employed is the use of partials – selling a portion of a note to recapitalize their investment while retaining some of the cash flow and upside potential.

“We have continued to work with our investors to both build their wealth and build our wealth at the same time,” Emily shares. “We prefer to recapitalize 90% or more of our initial investment.”

This approach allows them to recycle their capital and continually expand their portfolio. “Our best partial, our future cash flows are over $12,000, and we only have about $1,000 in the deal,” Adam adds, highlighting the power of this strategy.

Yield vs. Real Returns: A New Perspective

Through their experience with NoteSchool, Emily and Adam have gained a new perspective on investment returns. They’ve learned to look beyond simple yield calculations and consider factors such as the consistency of returns, the amount of effort required to manage the investment, and the potential for early payoffs.

“The yield is that calculation we talked about earlier, where it’s ‘What’s my return on the declining principal balance?'” Adam explains. “But I honestly tend to focus on cash flow. It includes not only the interest profit but also the principal payback, which I like to call velocity of principle coming back to my bank account.”

This focus on real, tangible returns has allowed the couple to build a more stable and predictable income stream compared to their previous real estate investments.

The NoteSchool Difference

Emily and Adam credit much of their success to the education and support they’ve received from NoteSchool. “We were prepared, we were educated, and we had the resources and systems thanks to NoteSchool to make that purchase,” Emily says of their first note investment.

Let’s hear it from them:

The couple also appreciates the community aspect of NoteSchool, which allows them to learn from and share experiences with other note investors.

Looking to the Future

As they continue to grow their note investing business, Emily and Adam are excited about the possibilities ahead. They’re focusing on refining their processes, diversifying their portfolio further, and helping other investors understand the potential of note investing.

“Diversification has become a big vocab word in our household the past couple years,” Adam reflects. “Looking in the rearview mirror, I think we should have started doing that earlier. Having a focus is great, but at the end of the day, being able to have growth assets and cash-flowing, velocity-of-your-money assets makes a huge difference.”

Your Turn to Succeed with NoteSchool

Emily and Adam’s story is just one example of the success that’s possible with NoteSchool’s education and resources. Whether you’re a seasoned real estate investor looking to diversify or a newcomer to the world of real estate investing, NoteSchool can provide you with the knowledge, tools, and community support you need to succeed in note investing.

Ready to achieve success in note investing? The best time to start is now! Take advantage of the resources below to learn from industry experts, connect with a thriving community, and unlock your full potential in creative real estate financing.

Your journey toward financial freedom begins today—don’t wait to take the next step!

Whenever you’re ready… here are 4 ways we can help you start your journey into note investing: