Borrowers are making regular payments. These offer lower risk and steady, immediate cash flow.
If the property value drops below your investment amount, your "security" is weakened. buying discounted notes
Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property. Borrowers are making regular payments
First position notes are paid first in a foreclosure, while "second" or junior notes are riskier but often cheaper. Key Benefits buying discounted notes