There are no hard and fast rules when it comes to note investing, but a little guidance goes a long way for those who are unfamiliar with this particular investment strategy. Today’s guest is Fred Moskowitz, an educator and a bestselling author who has trained countless investors from all walks of life on how to create passive income streams of their own. As a fund manager, Fred manages a mortgage note investment fund and is considered an industry veteran within the note investing arena. He prides himself on being a trusted and valued resource in the arena of alternative investments and his book, The Little Green Book Of Note Investing, offers readers a practical guide to the exciting world of investing in mortgage notes. In this episode of Passive Income Through Multifamily Real Estate, you’ll learn the essentials of building passive income with note investing and Fred debunks some commonly held misconceptions. It’s not just for the big Wall Street institutional players. Note investing is available to all investors, and Fred Moskowitz wants to help you get started today!
Key Points From This Episode:
- Debunking some misconceptions about note investing; it’s not just for ‘big players’!
- Insight into the secondary market at work; different types of notes you can invest in.
- Some of the variables that contribute to the value and loan balance of a note.
- Why Fred believes that diversification is important for note investors.
- Borrowing to buy notes and why Fred doesn’t recommend it for those just starting out.
- Understanding what due diligence entails when buying a note.
- The importance of building and maintaining relationships as a note investor.
- Various players in the note investing world, from vendors to attorneys and more.
- Hold periods and how note investors are impacted by rising interest rates and inflation.
- How mortgage notes add predictability, stability, and cashflow to your diversified portfolio.
- Advice for those starting their own investment business: get educated and build relationships!
Tweetables:
“When you become a note investor, you’re buying that debt. You’re stepping into the shoes of the bank and you become the one that is receiving those monthly payments instead of the one making the monthly payments.” — Fred Moskowitz [0:05:44]
“In this business, one of the highest values to focus on is building relationships.” — Fred Moskowitz [0:14:54]
“Mortgage notes add so much predictability, stability, and cashflow [to your portfolio]. It’s an income-based investment. It’s not a speculative investment. It’s not going to give you change in value, but it is going to give you cashflow that’s constant and predictable.” — Fred Moskowitz [0:29:58]
Links Mentioned in Today’s Episode:
The Little Green Book of Note Investing
Passive Income Through Multifamily Real Estate Facebook Group
