What Are The Note Investing Terms You Should Be Familiar With?
You must study these terms, seasoning, maturity, and amortization if you are a note investor. Go through this blog if you want to learn more about them. If you are beginning to consider real estate notes investing as a full-time job, you must be aware of all the terms associated with it. Have you heard about performing and non-performing notes before, right? Performing notes are those that can provide profits or returns regularly. Non-performing notes fail to do so and may need some intervention from the investor. The second point is to consider is lien positions, whether these notes are of 1st position lien or 2nd position lien. Although we don't require it in normal circumstances, we may need it during foreclosure. During this event, the 1st position lien will be considered first for repayment, before the 2nd position (junior positions). Why? Because 1srt position liens are less risky and...