3 Ways to Invest in Mortgage Notes (And why the smartest investors use all three)

Most people stick to one type of note. That’s a mistake.

Each note type has its own role in your portfolio:

• ✅ Performing Notes: Consistent paychecks, low risk
• ✅ Reperforming Notes: Higher returns, moderate risk
• ✅ Non-Performing Notes: Big discounts, big potential

The key? Build your own mix.

Want help putting it together?

Hit follow for more tips on cash flow, risk, and real returns.

⚠️ Disclaimer: I’m not a financial planner or CPA. This video is for education only. Please consult a qualified professional for advice.

#NoteInvesting #PassiveIncome #RealEstateInvestor #MortgageNotes #CashFlowTips #SmartInvesting #FinancialIndependence #Investing101

How to Analyze a Real Mortgage Note Deal (Step-by-Step Breakdown)

Ever wonder what goes into evaluating a real mortgage note deal?

In this video, I walk through a live example from a private lender. I break down the numbers, calculate yield, and decide whether to make an offer or pass.

📊 Here’s what you’ll learn:

• How to spot if a loan has been modified
• What “par” pricing means when buying notes
• How to calculate gross vs. net yield, including servicing fees
• What a good yield looks like, and when to walk away
• Why I prefer 1st position performing notes
• How I decide between full purchases or partials
• Real examples with calculators and comps
• How I help private lenders grow their portfolios
• When to use a self-directed IRA (SDIRA) to boost returns

I also talk about:

• Common red flags
• Why I no longer invest in rentals
• The power of stacking performing and non-performing notes

💬 Got a deal you want me to review?

📅 Schedule a free 30-minute call: https://talkwithlarryhoffman.com

📌 I go live every Friday at noon ET. Subscribe and turn on notifications so you don’t miss it.

⚠️ Disclaimer: I’m not a financial planner or CPA. This video is for education only. Please consult a qualified professional for advice.

Join me as I check out this real estate deal live! We'll walk through the property and see what happened. If you're interested in mortgage note deals, this video is for you!

I was testing out sa treaming service, but ended up walking through a real mortgage note deal that earned me and my investor an annualized return of 31.06% (15.53% split).

In this live stream, I cover how I invest in performing notes, why I always use a third-party loan servicer, and what sets note investing apart from rentals.

🚀 What We Cover:

• The difference between performing and non-performing notes
• Why I invest through my Self-Directed IRA (SDIRA)
• How to calculate ROI, cash-on-cash, and annualized return
• Why third-party servicing is non-negotiable
• The real numbers on a 27-month performing note payoff
• How I structure note deals to protect capital and grow retirement income
• What to do when borrowers fall behind (and how to help them)

🏠 Deal Breakdown:

• Purchase Price: $15,126
• Payoff: $23,287
• Payments: $159.31/month over 27 months
• Total Profit: $12,576.32
• Annualized ROI: 31.06%
• Investor’s Return: 15.53%

💡 I’m launching a weekly Friday livestream series covering:

• Mortgage note investing strategies
• Real estate investing without tenants or toilets
• SDIRA and retirement planning with notes
• Live Q&A sessions and deal breakdowns

🎯 Ready to learn more?

📞 Book a free 30-min call: http://TalkWithLarryHoffman.com
📚 Articles + free resources: https://ljhinvestments.com
📧 Email me: larry@ljhinvestments.com

Whether you're new to mortgage notes or looking to scale, this is your place to learn from real deals, real returns, and real talk. Subscribe and comment if you want me to cover a specific topic!

Want to fast-track your success in mortgage note investing? Don't waste years on trial and error—get the right mentor to guide you, save you from costly mistakes, and help you spot hidden opportunities.

In this episode of In The Know, I’m breaking down:
✅ Why mentorship is a game-changer for note investors
✅ How to find the right mentor (and avoid the wrong ones)
✅ The secrets to building a strong mentor-mentee relationship

🎧 Listen now on your favorite podcast platform!

Are your bank CDs barely keeping up with inflation? There’s a better way to grow your money without taking on crazy risks. In the latest episode of In The Know, I break down:

✅ The Hidden Risk of Playing It Too Safe (Hint: Inflation is eating your returns!)
✅ Mortgage Notes 101: The Better CD? (Earn 6–10% like the bank does!)
✅ Is This Right for You? (Let’s talk about risks & how to manage them.)

💰 Stop letting your money nap—make it work smarter! Tune in NOW! 🎧

In this episode, Larry Hoffman breaks down Fannie Mae's and Freddie Mac's latest data, revealing a slight uptick in serious delinquency rates. But what does this mean for mortgage note investors? Larry explains the potential ripple effects on performing and non-performing notes, plus how economic indicators like unemployment and interest rates play a role.

🗣️ Key Topics Covered:

1. Fannie & Freddie’s Delinquency Rates:

   • Quick overview of the latest data

   • Historical context compared to the housing crisis and pandemic

2. Impact on Mortgage Note Investing:

   • Opportunities in non-performing notes (NPNs)

   • How pricing for performing notes might shift

   • Risk factors to watch

3. Economic Indicators to Monitor:

   • The role of rising unemployment

   • How interest rate changes affect default rates and prepayment risks

4. Actionable Takeaways:

   • How to adjust your investment strategy

   • Why cash reserves and market awareness are key right now

💡 Larry’s Hot Take:

"Rising delinquencies aren’t a red flag—they’re a signal. Smart investors know this is when opportunities start to surface."

💰 Want to know how to profit from this shift? Listen to the latest In The Know podcast! 🎙️

📈 Resources Mentioned:

https://www.calculatedriskblog.com/2025/02/fannie-and-freddie-single-family.html

EP8: 🎙Cracking the Code: Understanding the Secondary Market for Mortgage Notes

Have you ever heard of the secondary market for mortgage notes? It’s like a hidden treasure trove for investors—but only if you know where to look. In this episode of In The Know, I’m breaking it all down:

✅ What the secondary market is and how it works

✅ Where to find mortgage notes (and avoid the duds)

✅ How to evaluate a note like a pro and spot opportunities

Whether you’re looking for steady cash flow or big returns, this episode will give you the tools to get started. Tune in now and take one step closer to becoming the bank. 🏦