Usha Investment Group LLC

Building world class communities

Diversifying Your Portfolio with Note Investing

Are you looking for alternative sources of income? In this episode of MultiFamily AP360, I interview Fred Moskowitz, an expert in note investing. Fred is an educator, bestselling author, and fund manager in the note investing arena.

Fred shares his background and how he got into note investing. He explains that note investing involves investing in the paper associated with properties, such as notes and mortgages. Note investing allows investors to step into the shoes of the lender and increase the predictability of their cash flow.

There are two ways to get involved in note investing: actively buying notes in the secondary market or passively investing in a note fund. Fred emphasizes that building relationships is key to finding good notes and accessing deals. Fund sizes and minimum investments vary widely, and investors should evaluate each option to find a good fit.

Fred explains the different types of notes available for investment, with residential mortgages being the most common. He also mentions that notes on commercial properties, such as multi-family buildings and hotels, are available, as well as more niche areas like aviation, aircraft, and yachts.

When asked about the risks associated with note investing, Fred mentions the potential for other liens on the property that could impact the value of the note. He also stresses the importance of using a licensed loan servicer when investing in notes.

The conversation then shifts towards the impact of current market conditions on note investing. Fred advises investors to consider all the upside and downside points and manage their risk appropriately.

Fred’s personal habits that have helped him be successful include being a lifelong learner and always looking to learn new skills. He recommends taking advantage of the many workshops, classes, and online education available to improve one’s skills.

As Fred says, “Note investing is not for everyone, but it can be a great way to diversify your portfolio and increase your cash flow.” Tune in to the full episode to learn more about note investing and how it could benefit you. Tune in nowthis episode of Multi-Family AP 360 !

For more insight to such conversations, subscribe to Multifamily AP360 podcast