Mortgage Note Investing Education

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.

40+ Years of Experience in the Note Business
50,000+ Note Deals Completed
2,000+ Investors Educated Through NoteSchool
Start With the Basics

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
Why Investors Explore Notes

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.

1

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.

2

Multiple Note Strategies

Performing notes, non-performing notes, partials, seller financing, and other structures give investors multiple ways to participate.

3

Opportunities Beyond Your Local Market

Note investing can provide exposure to borrowers and properties across different geographic markets without requiring you to live nearby.

4

Flexible Deal Structures

Different balances, payment streams, collateral, pricing, and exit strategies allow investors to evaluate deals based on their own goals.

How NoteSchool Helps

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.

Eddie Speed, founder of NoteSchool
Built on Real-World Experience

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 →
Student Stories

See How Investors Are Applying What They Learn

Explore three different NoteSchool student journeys and the strategies they used in real-world note investing.

Emily and Adam NoteSchool success story
Partial Notes

Emily & Adam

From Zero to $6,000 Monthly Note Income in 6 Months

From Zero to $6,000 Monthly Note Income in 6 Months

When Emily and Adam first discovered NoteSchool, they were facing a significant income disruption and needed a solution fast. As a smart, young couple with no prior experience in note investing, they embodied the ideal NoteSchool student: coachable, action-oriented, and determined to succeed.

Their journey began with NoteSchool’s comprehensive training program, where they quickly grasped the fundamentals of note investing. Emily and Adam were particularly drawn to the power of partial notes, a strategy that allows investors to maximize returns while minimizing risk.

Within their first month, they completed their first partial note deal, investing just $1,000 for a future cash flow of over $30,000. Encouraged by this success, they aggressively pursued more opportunities, leveraging NoteSchool’s network and resources.

By month three, Emily and Adam had completed five partial note deals, leaving only $5,000 invested while securing over $150,000 in future cash flows. Their momentum continued to build, and by the six-month mark, they had achieved their goal of creating $6,000 in monthly note income.

Key to their success was their ability to quickly implement NoteSchool’s strategies, particularly the “Martha Model” for leveraging partial notes. They also took full advantage of NoteSchool’s done-for-you services, which allowed them to scale their operations rapidly without getting bogged down in the details.

Today, Emily and Adam are not only financially secure but are actively expanding their note portfolio. They credit NoteSchool with providing them the knowledge, tools, and support needed to transform their financial future in such a short time. Their story serves as an inspiration to other NoteSchool students, proving that with the right education and determination, anyone can achieve remarkable success in note investing.

Jay Redding NoteSchool success story
Family Investing

Jay Redding

Building a Family Legacy Through Note Investing

Building a Family Legacy Through Note Investing

Jay Redding’s journey with NoteSchool is a testament to the power of note investing in creating both immediate profits and long-term family wealth. As a successful professional, Jay was initially drawn to note investing for its flexibility in designing the lifestyle he wanted, balancing short-term cash infusions with long-term passive income.

Jay’s first major success came with a non-performing note deal that netted him nearly $28,000 in just two months. This deal, which involved a property in another state, showcased the power of NoteSchool’s nationwide network and the effectiveness of their foreclosure strategies.

Impressed by the potential, Jay dove deeper into NoteSchool’s advanced strategies. He particularly excelled in buying non-performing notes at significant discounts and then either getting them to re-perform or profiting from the foreclosure process. Over the next year, Jay completed a series of deals that not only provided substantial cash flow but also built his expertise in navigating complex note transactions.

What sets Jay’s story apart is how he leveraged his success to create a family legacy. Recognizing the long-term potential of note investing, Jay introduced his son-in-law, Kyle, to NoteSchool. Together, they began building a family note investing business, combining Jay’s experience with Kyle’s fresh perspective and tech-savvy approach.

Their family venture has since grown into a thriving operation, managing a diverse portfolio of notes across multiple states. They’ve strategically used NoteSchool’s partial note strategies to accelerate their growth, reinvesting profits into new opportunities.

Jay and Kyle’s success has not only secured their own financial futures but has also created a sustainable business model that can be passed down through generations. Their story highlights how NoteSchool’s teachings go beyond individual success, empowering families to build lasting wealth and financial security.

Today, Jay is not just a student but a vocal advocate for NoteSchool, often sharing his experiences at events and mentoring new investors. His journey from curious beginner to family wealth architect exemplifies the transformative impact of NoteSchool’s education and community support.

Sophia Jones NoteSchool success story
Non-Performing Notes

Sophia Jones

Turning a 10-Year Non-Performing Note into a Passive Income Stream

Turning a 10-Year Non-Performing Note into a Passive Income Stream

Sophia Jones’ success story with NoteSchool is a perfect example of how the right knowledge and support can turn a challenging situation into a profitable opportunity. As one of her first deals after joining NoteSchool, Sophia tackled a note that many would have considered too risky – a property in Florida where the owner hadn’t made a payment in 10 years.

Armed with the skills and confidence gained from NoteSchool’s training, Sophia saw potential where others saw problems. She purchased the non-performing note for just $76,000, which was an impressive 29% of the property’s $265,000 market value.

Sophia’s approach showcased the power of NoteSchool’s teachings on negotiation and borrower communication. Instead of immediately pursuing foreclosure, she reached out to the homeowner through the note servicer. Her empathetic yet strategic approach led to a constructive dialogue with the owner, resulting in a win-win solution.

Through skillful negotiation, Sophia was able to get the note re-performing. The homeowner, grateful for the opportunity to keep their home, agreed to resume payments at $710.68 per month. This outcome not only provided Sophia with a steady passive income stream but also helped the homeowner avoid foreclosure and stay in their home.

What’s particularly impressive about Sophia’s deal is the efficiency with which she executed it. The entire process, from acquisition to resolution, took her only 10 hours of work. This efficiency is a testament to the effectiveness of NoteSchool’s systems and network of resources.

Moreover, Sophia leveraged NoteSchool’s teachings on creative financing, using other people’s money to fund the deal. This strategy allowed her to complete a significant transaction without tying up her own capital, maximizing her return on investment.

Sophia’s success with this deal has had a ripple effect on her investing career. The consistent cash flow from this re-performing note has provided her with the confidence and capital to pursue more opportunities. She’s since become an active member of the NoteSchool community, sharing her experiences and inspiring other investors to take on challenges that others might overlook.

Sophia’s story highlights how NoteSchool’s education goes beyond just theory, providing students with the practical skills and support network needed to succeed in real-world scenarios. Her transformation from a novice investor to successfully managing a complex, high-reward deal epitomizes the potential that note investing offers when backed by quality education and mentorship.

These stories reflect individual student experiences. Note investing involves risk, individual results vary, and past results do not guarantee future outcomes.

Explore more NoteSchool student stories →
Common Questions

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