If someone asked you what is note investing, would you know how to answer?
Probably not—and you’re not alone.

Note investing is one of the most powerful (and underrated) ways to build wealth through real estate, but it’s often overlooked. It doesn’t show up on HGTV. It’s not what your friend’s uncle means when he says he “flips houses.” And yet—it’s how a growing number of smart investors are creating consistent, passive income.

So what exactly is it? And why should you care?

First Things First: What Is Note Investing?

At its core, note investing means buying real estate debt—not the property.

A “note” is just another name for a mortgage loan. When someone buys a home and borrows money, they sign a promissory note agreeing to repay it over time. Most banks don’t keep those loans—they sell them. That’s where you come in.

As a note investor, you step into the shoes of the bank. The borrower keeps living in the home—but now, they pay you.

👉 You don’t own the house. You own the right to be paid.

How Note Investing Works (In Plain English)

Let’s say Jane buys a home and gets a $200,000 mortgage. After a while, her lender sells that mortgage to someone else—maybe you.

You buy the note for less than what it’s worth (say, $150,000), and Jane continues to make her monthly payments—just to you now.

You profit from:

• The monthly interest payments

• The discount you bought the note at

• Any lump sum if the loan pays off early or the house sells

And all of this happens without fixing toilets, fielding tenant calls, or managing property.

Performing vs. Non-Performing Notes

There are two main types of notes:

✅ Performing Notes:

The borrower is making payments on time. You collect monthly income.

❌ Non-Performing Notes:

The borrower has stopped paying. Sounds bad—but it can be very profitable.

With the right training (like what we teach at NoteSchool), investors can:

• Get the borrower back on track and resume payments (win-win)

• Negotiate a lump sum payoff

• Start foreclosure and take control of the property

• Sell the note to another investor at a profit

Non-performing notes are often bought at a deep discount, which gives you options—and leverage.

Why You’ve Probably Never Heard of This

Note investing has been around forever, but it’s mostly been an “insider’s game.” For years, only banks, hedge funds, and institutional investors had access to mortgage notes.

But that’s changed.

Thanks to education platforms like NoteSchool, everyday investors are learning how to:

• Buy notes with their IRAs or savings

• Use creative strategies like partial notes

• Earn passive income without being a landlord

• Build scalable portfolios with less risk

The best part? You don’t need to be wealthy to start. You just need to know how it works—and where to find the deals.

Is Note Investing Right for You?

Ask yourself:

✅ Do I want monthly income without managing properties?
✅ Am I looking for a passive strategy I can grow over time?
✅ Do I want to invest in real estate without owning physical property?
✅ Am I open to learning a strategy that most people don’t even know exists?

If you answered yes, note investing might be exactly what you’ve been looking for.

So what is Note Investing?

It’s your key to achieving financial freedom… and 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: