Note investing is the buying, selling, and holding of real estate-secured promissory notes on the secondary mortgage market in order to secure profit. Notes are often bought at a discount from their “face value” due to problems with the real estate asset or the loan payback. The notes for these “distressed assets” are sold on secondary debt market to investors willing to take on the issues that caused old note owner to sell their note.

Most secondary notes fall into the Performing or Non-Performing categories. New note investors typically have a strategy to overcome the issues in order to turn a profit. Since most notes on the secondary market are bought at a discount, profit is attainable for savvy investors.

NoteMatriX’s Education Program is designed to teach anyone how to make profit from note investing.
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NoteMatriX can show you 26 profitable exit strategies when investing in notes.

Owning property for investment comes with all the potential problems of being a landlord.  When you own the note, you become the bank leaving the responsibility for taxes, insurance, and what Note investors call “Tenants, Toilets, and Termites” to the property owner.

The key concept is the Borrower on the note is responsible for issues whereas the Note Holder is not.

YES! Notes can be acquired inside your retirement account or IRA.

Many private investors take advantage of the tax savings offered through a Self-directed IRA, ROTH, Solo 401k, or SIMPLE plan. The purchase is handled via your account administrator through their Direction of Investment (DOI) form and process.

Traditional real estate investing means being a landlord, it involves ownership of real property, these properties require property management, maintenance and managing tenants!  

Note investors only deal in the underlying “paper” or debt, specifically the mortgage note or contract (with a Contract for Deed). The investor is buys the payment stream on the note and the ability to sell said Note for a profit, thereby avoiding the time consuming and stressful effort in dealing with a management company and maintenance associated with “Tenants, Toilets, and Termites”,

YES!  Real estate notes can be excellent investments! Profits will vary by the note, investor’s yield, the equity held in the mortgaged property factoring property type, location, pay history on the note, number of  delinquent payments, if any; credit worthiness of the payor, terms, etc. The flexibility of owning Notes also allows you many options in managing a profitable exit strategy.

Owning the right note can pay you passive income every month for years!

As the terms of the purchase are spelled out in the Purchase and Sale Agreement (PSA), the Promissory Note is endorsed to the investor.

With the Assignment of the Mortgage or Deed of Trust executed and then recorded at the county courthouse the ownership is complete. These documents are provided for the investor through the NoteMatriX document archive.

We all know that due to Covid-19 the economy has taken a huge hit. Market indicators that reflect unemployment, mortgage forbearance, pending evictions all add up to a surge of pending foreclosures in 2021 and 2022. This, coupled with the volume of non-accruing / non-performing debt held by banks across the USA points to volatility coming and thus drops in market pricing which will bode well for Note Investors. There will likely be a huge inventory of notes in the near future.

There is a large market for notes out there. Like all assets the value of your note must be evaluated.

Note holders who need cash may sell their note to an investor for less than what is owed in exchange for a lump sum, instead of waiting months and years for full loan maturity for full Cash Flow. The note buyer will perform their due diligence, weigh risk versus reward and then can determine optimal yield which can then dictate the best opening purchase offer.

Performance means how well the payor has been making payments to keep the note current. The three main categories for search purposes are as follows:

• Performing Notes – payments as current or under 90-120 days delinquent.
• Non-Performing – payments are delinquent over 90-120 days or more.
• REO – the borrower has been foreclosed on for non-payment and is now “Real Estate Owned” (REO). Now the property, not the note, is being sold like a traditional deal.

Yes! Now you can!   Up until now, it was difficult, as an individual, to have the right connections to gain access to notes & distressed assets.

But now, NoteTradeX, the sister company to NoteMatriX, is disrupting the notes industry! We are gathering and offering notes for sale in our own proprietary database platform.

NoteTradeX is a Trading Platform for Notes & REO’s! We offer discounted notes for purchase from one per offer on up.

As a NoteMatriX student, you wil get automatic entry to our NoteTradeX trading platform.

The NoteTradeX Platform is not an “auction” or “make a bid” platform. You won’t get into some kind of bidding war to drive up the price.  The idea is to get notes at a discount so you can make good money or a passive income!

Our sellers will engage with you, a potential buyer when you make an indicative bid / offer.  Once the initial offer is accepted the seller sends collateral files. Then you, as a buyer may then submit due diligence findings for review that may warrant a reduction in price. But most importantly the discussion has begun and small investors now have access to assets that were not as available to them in the past.

Most importantly we walk you through the entire process in our NoteMatriX Notes Master Class!