Learn How to Invest in Mortgage Notes
NoteSchool teaches investors how real estate-backed notes work, how to evaluate opportunities, and how mortgage note investing can provide an alternative to owning and managing rental property. Learn from decades of real-world experience in performing notes, non-performing notes, seller financing, and creative deal structure.
What Is Mortgage Note Investing?
A mortgage note represents the debt behind a real estate transaction. When someone finances the purchase of a property, the note outlines the borrower’s promise to repay the loan and is typically secured by the underlying real estate.
Instead of buying the property itself, a note investor may purchase all or part of that debt and receive payments according to the terms of the loan. Investors can work with performing notes, where borrowers are making payments, as well as non-performing notes that require a different strategy.
That means participating in real estate without necessarily becoming the landlord responsible for tenants, repairs, vacancies, and day-to-day property management.
Learn how investing in mortgage notes works →Own the Property
- • Manage the physical real estate
- • Handle maintenance and repairs
- • Manage tenants or property managers
- • Account for vacancies and operating costs
Own the Note
- ✓ Own real estate-backed debt
- ✓ Receive payments according to the loan terms
- ✓ Use professional servicing when appropriate
- ✓ Avoid direct day-to-day property management
A Different Way to Participate in Real Estate
Mortgage notes operate differently from owning rental property. That creates a different set of opportunities, responsibilities, and risks for investors to evaluate.
Real Estate Without Being the Landlord
Invest in real estate-backed debt without taking on the same tenant, repair, and property-management responsibilities as direct ownership.
Multiple Note Strategies
Performing notes, non-performing notes, partials, seller financing, and other structures give investors multiple ways to participate.
Opportunities Beyond Your Local Market
Note investing can provide exposure to borrowers and properties across different geographic markets without requiring you to live nearby.
Flexible Deal Structures
Different balances, payment streams, collateral, pricing, and exit strategies allow investors to evaluate deals based on their own goals.
Where Are You in Your Note Investing Journey?
You do not need to know everything before you begin learning. Choose the path that best matches where you are today.
I’m Just Getting Started
If you are still asking “What exactly is a mortgage note?”, start with the free nine-video Starter Series and learn the fundamentals.
Start the Free Starter Series → Ready to Learn MoreI Want Deeper Note Investing Education
Explore NoteSchool programs designed to help investors understand deal evaluation, strategy, due diligence, and the note-buying process.
Explore NoteSchool Programs → Hands-On SupportI Want Mentoring & Guidance
Learn about NoteSchool’s mentoring experience for investors who want additional training, accountability, resources, and support.
Explore Mentoring → Rental Property OwnerI’m Tired of Being a Landlord
Already own rental property? Explore how owner financing and note strategies may offer another way to structure your real estate assets.
Explore Rentals to Notes →More Than a Collection of Courses
NoteSchool combines education, real-world experience, support, and practical resources to help investors better understand the note business.
Note Investing Education
Learn the fundamentals and advanced strategies behind performing notes, non-performing notes, seller financing, and note transactions.
Mentoring
Get additional guidance, accountability, and access to experienced professionals as you build your understanding of the business.
Live Training
Attend virtual and in-person training designed to help investors connect concepts with real-world note investing situations.
Deal Analysis
Learn how experienced note investors evaluate collateral, borrower circumstances, pricing, documentation, and possible outcomes.
Community & Support
Learn alongside other investors and connect with people working through many of the same questions and decisions.
Free Resources
Access guides, videos, articles, podcasts, FAQs, and educational tools before deciding how deeply you want to pursue notes.
Learn From More Than 40 Years in the Note Business
Eddie Speed entered the note business in 1980 and founded NoteSchool in 1999 after spending years buying, selling, brokering, and structuring real estate notes.
His experience spans tens of thousands of note transactions and multiple real estate cycles. That hands-on background has shaped NoteSchool’s approach to teaching investors how mortgage notes actually work in the real world.
Learn more about Eddie Speed and NoteSchool →Not Ready for a Program? Start With the Resources.
You can learn a lot about the note business before spending a dollar on education. These free resources are a good place to begin.
Beginner’s Guide to Note Investing
Learn the terminology, due diligence concepts, and fundamentals new note investors should understand.
Live TrainingFree Note Investing Webinar
Explore how mortgage notes work and why investors may consider owning the debt behind real estate.
Video FAQQuestions Answered by Eddie Speed
Watch short answers to common questions about notes, mentoring, market timing, and getting started.
ReferenceMortgage Note Investing Glossary
Look up the terminology used throughout mortgage notes, servicing, lending, and real estate-backed debt.
Mortgage Note Investing FAQ
These are some of the first questions investors ask when they discover the note business.
What exactly is mortgage note investing?
Mortgage note investing involves purchasing debt that is secured by real estate. Instead of owning the property itself, the investor owns all or part of the borrower’s repayment obligation.
Depending on the note, an investor may receive scheduled payments, purchase a loan at a discount, work through a borrower default, or use another strategy based on the loan and collateral.
What is the difference between performing and non-performing notes?
A performing note is generally a loan where the borrower is making payments according to the agreed terms. A non-performing note involves a borrower who has fallen behind or stopped making payments.
The two require different pricing, due diligence, servicing, and exit strategies.
How much money do I need to start investing in notes?
There is no single minimum that applies to every note transaction. Note balances and purchase prices vary widely, and strategies such as partial notes can involve different amounts of capital than purchasing an entire loan.
New investors should focus first on understanding due diligence, deal structure, risk, and how capital will be deployed before choosing a transaction.
Is mortgage note investing low risk?
No investment is risk-free. Mortgage notes may be secured by real estate, but investors still need to evaluate the borrower, collateral, lien position, loan documents, servicing history, property value, legal considerations, and possible exit strategies.
Good due diligence is a major part of note investing.
Can retirement funds be used to invest in mortgage notes?
Some investors use certain self-directed retirement accounts to purchase eligible alternative investments, including mortgage notes. The rules depend on the account structure and transaction, so investors should work with qualified custodians and tax or legal professionals when evaluating retirement-account investments.
Where should a beginner start?
Start by learning how mortgage notes work before evaluating individual deals. Understand the basic terminology, performing versus non-performing notes, servicing, lien position, collateral, due diligence, and how investors make or lose money.
The free NoteSchool Starter Series was created specifically for people at that stage.
Ready to Understand the Note Business?
Start with nine free videos that introduce the fundamentals of mortgage note investing and help you decide whether notes are worth exploring further.
Start the Free Starter Series