Non-Performing notes are acquired at a significant discount, sometimes up to 70% off of the fair market value of the property. Owning a secured first position lien with significant equity reduces risk by providing up to eight exit strategies. Unlike stocks, where they can become worthless if a company goes in default, notes retain their value.
ABOVE AVERAGE RETURNS - TAX FREE WITHIN AN IRA
Notes may provide above average returns and a steady stream of cash flow. When a borrower reinstates payments, the cashflow can be tax free or tax deferred if used properly within an IRA.