You aren't buying the note; you are buying the contract to buy the note, then selling that contract to someone with cash.
He found a private investor, Mrs. Gable, who had lent $50,000 to a fix-and-flip artist three years ago. The flipper had vanished, the house was rotting, and Mrs. Gable was tired of the taxes. She held a "performing note" that had gone "non-performing."
Marcus saw the math. He paid the $30,000 directly to Mrs. Gable. She was thrilled to be rid of the stress. Marcus got a high-yield asset for 60 cents on the dollar. how to buy notes with no money
Buying notes (specifically real estate promissory notes) with no money down is a classic "creative finance" strategy. It relies on finding a problem to solve rather than just a price to pay.
Elias didn't have $30,000. He called a local "hard money" investor, Marcus. You aren't buying the note; you are buying
He secured an option to buy her note for $30,000 (a discount, since it was non-performing). He gave her $10—literally a ten-dollar bill—as "earnest money" to make the contract legal.
The mailbox was full of final notices, but Elias wasn't looking at his own mail. He was looking at a spreadsheet of "zombie" properties—homes where the owners had disappeared, leaving the bank or private lenders holding a piece of paper that wasn't paying a dime. The flipper had vanished, the house was rotting, and Mrs
Elias drafted a simple agreement. He didn't buy the note with cash. Instead, he used a or Wholesale strategy: