Jun 7, 2022
Summary:
With many losses in the stock market over the last few months, many
investors are in search of alternatives for cash flow. Fred
Moskowitz comes on the show to talk about alternative investing
methods, focusing on note investing—an oftentimes overlooked asset
within the real estate market. Fred shares his expert insight on
how to get into this realm of investing, some of its benefits, and
pointers for when/how to buy notes. Be sure to tune in to this
episode for an insider perspective of this alternative to the stock
market, and you can use the link below to purchase Moskowitz’s The
Little Green Book of Note Investing if you want to learn more.
Highlights:
-There have been losses in the stock market over the last few
months, and many investors are looking for alternatives
-For a fleeing stock market investor, there are a number of
alternative investing methods
-It’s important to own assets that generate income for you, such as
rental real estate. The government has incentives in place for
owning these
-Owning mortgage notes is also a worthy venture; it gives a steady
income component. They get bought and sold on the secondary market
every day
-Owning a mortgage on a rental property gives a lot of downside
protection. Another positive aspect is that you get paid while you
wait
-Buying/starting a business allows you to be directly involved with
the asset
-Buying properties based on future cash flow can be risky in an
inflated market
-It’s beneficial to buy real estate if an opportunity appears with
a cash flow that can cover your expenses
-If you buy real estate that is generating cash flow today and the
property is covering itself, then it’s a safe option
-When it’s not ideal to buy, it’s good to educate yourself on real
estate and take time to accrue knowledge
-Mortgage notes can be found by working with real estate investment
groups and seeking out note investors
-Notes can also be acquired through creating contacts and
networking within real estate
-Educating yourself before buying anything is also crucial
-Notes are traditionally sold for a discount
-Supply and demand impacts the pricing of notes, and some states
have more demand for notes
-You can buy a portion of a note rather than the note in its
entirety (i.e. buying a $10k slice of a note). This is helpful for
getting started in note investing
-Fred’s book, The Little Green Book of Note Investing, gives an
overview of note investing and provides tips, logistics, and
how-to’s in this sector
Useful Links:
Financial Survival Network
Fred Moskowitz
The Little Green Book of Note
Investing