How Kathleen Chin Built a Remote Note Investing Business from Hawaii

From Condo Landlord to Note Investor: A Pacific Perspective

For investors looking to break free from the limitations of traditional real estate, Kathleen Chin’s story provides a compelling roadmap. An experienced investor based in Honolulu, Hawaii, Kathleen has discovered how note investing allows her to generate superior returns while investing remotely across the United States.

“What attracted me to notes is just a different way to look at investing,” Kathleen explains. “The different strategies—you could borrow, you could pledge, you could sell part of your note if you don’t need that cash flow right away.”

This flexibility, combined with the steady cash flow and reduced management headaches, has quickly made note investing Kathleen’s preferred investment strategy.

From Stocks to Real Estate: An Investor’s Journey

Kathleen’s investing journey began in college when her mother gave her money specifically earmarked for her education. Rather than simply spending it, she invested in stocks, setting the foundation for a lifelong investment mindset.

“I actually started investing right as I entered college,” Kathleen recalls. “My mother gave me money and she said, ‘You’re going to use this for college.’ So that was stocks at that time.”

Over the next several years, Kathleen expanded her investment portfolio, branching into various real estate strategies:

• Private lending
• Purchasing foreclosures
• Fixing and flipping properties
• Building a rental portfolio of condos in Hawaii

While these investments performed well over time, Kathleen began noticing a troubling trend with her rental properties.

The Rental Property Challenge: Rising Costs, Shrinking Returns

Like many landlords across the country, Kathleen found that her rental properties weren’t delivering the returns they once did. Despite owning condos in the desirable Hawaii market, the numbers were becoming increasingly difficult to justify.

“The biggest thing that happened over the years is that the costs continued to go up,” Kathleen explains. “Our hurricane insurance, fire insurance… As that started to increase, there just is not much cash flow.”

This experience mirrors what Eddie Speed, founder of NoteSchool, has observed nationwide: expenses for rental properties have increased by approximately 50%, while rents have only risen about 20%. The result is a significant squeeze on cash flow.

With diminishing returns, Kathleen’s rental strategy had shifted primarily to appreciation. “Your only investment strategy at this point is really appreciation. You’re looking for that, and of course we have that in Hawaii,” she notes. “But as we all know, appreciation is down the road, not here and now.”

The NoteSchool Discovery

About two years ago, Kathleen began hearing about NoteSchool. Intrigued by the concept of note investing, she spent time listening to content and reading articles before joining in February 2023.

Her background as a mortgage license holder gave her a head start in understanding the mechanics of notes, but NoteSchool revealed strategies she hadn’t encountered in traditional mortgage lending.

“I took that first class in November of last year and I started listening and I thought, ‘Wow, this is another strategy, another way to expand a portfolio,'” Kathleen shares.

The financial modeling taught at NoteSchool particularly resonated with her. Learning how to make money work harder through creative financing and deal structuring opened her eyes to possibilities beyond conventional investing.

First Note Purchase: From Hawaii to Indianapolis

Just two weeks before her interview on NSTV, Kathleen purchased her first note through NoteSchool’s deal flow network. Despite being located almost 4,400 miles away in Hawaii, distance was no barrier to this investment opportunity in Indianapolis, Indiana.

The numbers on Kathleen’s first note purchase tell a compelling story:

• Property value: $150,000
• Note purchase price: $80,000
• Monthly payment: $1,559

This investment immediately demonstrates the key advantages of note investing over rentals:

1. Superior cash flow: On an $80,000 investment, Kathleen receives $1,559 monthly—nearly double what a comparable rental might generate.
2. Significant equity cushion: With a $70,000 buffer between her investment and the property value, Kathleen has substantial protection against market fluctuations.
3. No management headaches: As she experienced firsthand with a recent air conditioner failure in one of her rentals, property management requires constant attention and emergency responses.

“You funded $80,000 and you’re getting $1,500 a month versus if you bought a $150,000 rental… you’d probably net $600 or $700 a month just cash to cash,” Eddie pointed out during the interview.

When asked if note investing is easier than owning rentals, Kathleen’s response was unequivocal: “Oh, absolutely.”

Building a Legacy Through Note Investing

Beyond the immediate financial benefits, Kathleen sees note investing as a powerful vehicle for building generational wealth. As a mother of three, she’s passionate about creating a legacy and teaching her children the value of strategic investing.

“In terms of a legacy… what I’ve always taught them was what my mother had taught me, which is having a mindset of investing and looking past just what they have now,” Kathleen explains.

This perspective aligns perfectly with Eddie Speed’s own family experience. Although none of his three children work primarily in note investing, they all use notes to build their legacy portfolios while pursuing their own careers.

Kathleen recognizes that retirement and financial security will look different for her children’s generation than it did for previous ones. By introducing them to creative investment strategies like note investing, she’s equipping them with tools to navigate an uncertain financial future.

The Path Forward: Financial Freedom Through Notes

As Kathleen looks to the future, her vision for note investing is clear. She’s focused on two primary goals:

1. Reliable cash flow: “Long term, it is really for the cash flow so that I don’t have to worry that I can pay those bills. It’s just coming in like clockwork every month.”
2. Wealth building: “Also the wealth building part as well, so that we can sort of stack them up and so as we get older and we want to work less or we want to pursue more traveling or whatever, we have the means to do that.”

By consistently acquiring performing notes, Kathleen aims to reach her “freedom number”—the amount of passive income needed to achieve financial independence. This doesn’t necessarily mean retirement, but rather the freedom to make choices based on preference rather than necessity.

Eddie Speed notes that “note portfolios are way more inheritable than rental portfolios,” an observation Kathleen firmly agrees with. “When you look at the generation now, they don’t want rental properties. They look at them as just headaches. What they want is the cash.”

The NoteSchool Advantage

Kathleen’s journey highlights the power of education and community in building investment success. By connecting with NoteSchool, she gained:

1. Education: Learning financial modeling and note investing strategies that weren’t available in her previous experience
2. Deal flow: Access to quality note opportunities that fit her investment criteria
3. Community: Connection with like-minded investors and industry experts
4. Vision: A clear path toward building wealth and legacy through notes

For Kathleen, the decision to join NoteSchool and shift her investment focus toward notes has already begun paying dividends. With her first note purchase generating substantial cash flow and plans to acquire more, she’s well on her way to building the passive income portfolio she envisions.

Investing Without Borders

Perhaps the most powerful aspect of Kathleen’s story is how it demonstrates that note investing truly knows no geographical boundaries. From her home in Honolulu, she can identify and acquire quality note investments anywhere in the country.

As Eddie Speed often says, “We buy deals where good deals exist.” This location-independent approach gives note investors like Kathleen tremendous flexibility and access to opportunities that would be impossible with traditional rental properties.

For those considering their own investment journey, Kathleen’s experience offers a compelling case study in the power of note investing to generate superior returns while eliminating many of the headaches associated with traditional real estate.

“The math is pretty overwhelming… When I went to that first class and saw the difference between renting and having a note, that’s pretty much it.”

Ready to Start Your Own Note Investing Journey?

If Kathleen’s story resonates with you, consider taking the first step toward note investing by attending a NoteSchool two-day bootcamp. These comprehensive training events provide the foundation you need to understand the note business and begin building your own portfolio of performing notes.

Whether you’re currently a landlord frustrated by diminishing returns, a real estate investor looking to diversify, or simply someone seeking passive income opportunities, note investing offers a powerful alternative worth exploring.