Real estate notes, also known as promissory notes, are financial instruments that represent a debt secured by real property. They are typically used to finance the purchase of real estate, and they can be a valuable investment for those looking for a steady stream of income. However, buying real estate notes can be a complex process, and it is important to understand the risks and rewards involved before investing.
There are many benefits to investing in real estate notes. First, they can provide a steady stream of income. Second, they are secured by real property, which provides some protection against default. Third, they can be a good way to diversify your investment portfolio. However, there are also some risks associated with investing in real estate notes. First, the value of the note can fluctuate depending on the value of the underlying property. Second, the borrower may default on the loan, which could result in you losing your investment. Third, there are costs associated with investing in real estate notes, such as closing costs and legal fees.