What is a note? My interpretation is I lend you something, and you promise to pay me back by a certain date agreed upon.
Types of Notes
There are different types of notes; in Real estate there are notes from a bank. You purchase a property you look for a Mortgage, and you just created an I.O.U, which you promise to pay the bank back.
Or you can become the bank yourself, you can lend money out, like I have and get paid back monthly.
I Also heard of Notes where you buy either performing or non-performing notes, to learn more about them, you can Google or log on to YouTube and get educated.
How can you protect yourself?
This is where I have some experience, unfortunately I have a current note with an investor, now the note is small, but the point is I was promised to be paid back. The
Note was established on September of 2015, and a year and a month passed and I haven’t received a dime.
Now there is no guarantee I will be paid back, the investor might file bankruptcy, or the judge can rule against me. A few ways you can protect yourself is by having the note notarized which is important, also you can add to you contract. “If not paid by this date I will file court papers to receive payment”.
So I have no choice but to file a claim against the investor, which is currently pending.
Should I or Shouldn’t I?
Yes, it’s our choice to move forward after being stiffed by this investor, but let’s remember that one bad apple, should not spoil the bunch. There are many people who are honorable and will do the right thing.
I won’t sour on having a note, in fact I’m currently getting educated on the note business, it is another way to receive passive income, if done right.
That’s it for now, till next time
OneWill Properties, LLC