Empower Your Financial Future: Why Promissory Note Investing is the Game-Changer You Need! | Tiffany Alexander

Empower Your Financial Future: Why Promissory Note Investing is the Game-Changer You Need! | Tiffany Alexander

Hassle-Free Income Stream with Promissory Notes Investing!

🎙️In this episode of the Marketing Boost Solutions Podcast, host Captain Marco Torres dives into a compelling discussion with Tiffany Alexander, a highly accomplished real estate investor and promissory note specialist. Tiffany's journey from flipping houses to becoming a leader in the mortgage note industry offers invaluable lessons for businessmen and entrepreneurs looking to diversify their investment portfolios. This blog post delves into the key themes and actionable advice shared by Tiffany, providing a comprehensive guide to promissory note investing.
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Promissory note investing involves purchasing the debt secured by real estate, rather than the property itself. This strategy can offer significant returns with less hassle compared to traditional real estate investing. Tiffany Alexander, with her extensive experience since 2006, provides a deep dive into this investment method, highlighting its benefits and nuances.

Tiffany's Journey: From Flipping Houses to Note Investing

Initial Inspiration and Challenges

Tiffany's foray into real estate began with a desire to escape the traditional job cycle. Inspired by a late-night infomercial, she ventured into house flipping, learning the ropes from a real estate company. However, the challenges of being a landlord—dealing with tenants, contractors, and property management—led her to seek a more efficient investment strategy.

Transition to Promissory Note Investing

Tiffany's transition to note investing was sparked by a conversation with a fellow investor. She realized that owning mortgages could provide similar or better cash flow without the headaches of property management. After thorough research and discussions, she sold her rental properties and focused solely on note investing, marking a pivotal shift in her career.

Understanding Promissory Notes

Definition and Types

A promissory note is a written agreement outlining the terms of a loan, including the amount borrowed, interest rate, and repayment schedule. In real estate, this often involves a mortgage or deed of trust secured by a property. Tiffany emphasizes the importance of understanding the different types of notes:

• First Lien Positions: These provide the highest level of security for investors.

• Performing Notes: Payments are made on time.

• Non-Performing Notes: Payments are missed, presenting different opportunities and risks.

Finding and Evaluating Notes

Sourcing Notes

Tiffany notes that the market for notes can be somewhat exclusive, often resembling a "good old boys club." She encourages aspiring investors to network and seek connections within the industry. Notes can be sourced through:

• Direct Mail Campaigns

• Networking with Other Investors

• Purchasing from Institutional Sellers

Evaluation Criteria

Investors should have clear criteria for evaluating notes, including:

• Geographic Location

• Price Range

• Financial Goals

Investment Strategies

Performing vs. Non-Performing Notes

Tiffany discusses different strategies for note investing:

• Performing Notes: Ideal for consistent cash flow.

• Non-Performing Notes: Higher risk but potential for higher returns. These may require active management and negotiation.

Starting Small

For those new to note investing, Tiffany suggests starting with performing notes to build confidence and experience. As investors become more comfortable, they can explore non-performing notes.

Understanding Foreclosure Processes and State Preferences

State-Specific Foreclosure Processes

Tiffany emphasizes the importance of understanding foreclosure processes in different states. She prefers states like Texas, where the foreclosure process is swift, typically under 90 days. In contrast, states with judicial foreclosure processes, such as New York and Florida, have longer and more complex timelines.

Absorbing Potential Delays

Investors must assess their portfolios to determine if they can absorb potential delays in collecting on non-performing assets, especially when purchasing properties at significant discounts.

Market Conditions and Investment Strategies

Economic Downturns

Tiffany reassures listeners that there are always opportunities to buy right, regardless of market conditions. She highlights the importance of cash flow and understanding worst-case scenarios.

Helping Homeowners

Investors can often turn non-performing assets back into performing ones by offering solutions such as reducing interest rates or restructuring loans. The key is to buy assets at a significant discount.

Who Should Consider Note Investing?

Wide Range of Investors

Tiffany believes that everyone should explore alternative investment methods beyond traditional stocks or real estate. This includes:

• Tired Landlords: Looking to offload properties.

• Individuals with Savings or 401(k) Rollovers: Seeking new investment opportunities.

Investment Amounts

While investors can start with relatively small amounts, Tiffany prefers working with those looking to invest in the $60,000 to $150,000 range for better returns.

Investment Returns and Fund Structure

Fund Participation

Tiffany outlines the structure of her investment fund, with a minimum buy-in of $100,000, though she prefers amounts in the $250,000 to $1 million range. The fund mitigates risks by pooling investments, allowing for cross-collateralization.

Expected Returns

The fund typically offers returns starting at 6% and can go up to 10% or more, depending on the assets involved. The key to achieving these returns lies in purchasing notes at a discount.

Understanding the Math Behind Returns

Effective Return Calculation

Tiffany explains that the effective return is determined by the price paid for the note. For example, if a homeowner owes $100,000 at a 5% interest rate, but the note is purchased for $70,000, the yield increases significantly.

Interest-Weighted Payments

Initial mortgage payments are often heavily weighted toward interest, creating an opportunity for investors to benefit from the remaining payments while having purchased the note at a discount.

Flexibility in Restructuring Loans

Creative Solutions

Smaller investors can often negotiate terms that larger institutions cannot, allowing for creative solutions that benefit both parties. Understanding the homeowner's situation and being willing to work with them is crucial.

Lessons Learned and Mistakes to Avoid

Avoiding Complacency

Tiffany warns against complacency and the DIY approach to debt collection. She advocates for hiring a debt servicing company to handle collections efficiently and ensure compliance with regulations.

Cost-Effectiveness

Hiring a debt servicing company is cost-effective compared to a property manager for rental properties. This significant savings allows investors to focus on owning the debt rather than managing properties directly.

Educational Resources and Community Support

Learning and Consultation

Tiffany encourages potential investors to educate themselves about promissory note investing. She suggests starting with her YouTube channel for short, informative videos. Interested investors can then schedule a consultation through her website.

Independent Investing

While Tiffany manages a fund, she also encourages investors to consider building their own portfolios. She offers to share potential deals and educate investors on managing their own assets.

Community Building

Tiffany aims to create a community where investors can learn from each other and grow together. She is open to sharing her knowledge and connecting with individuals who have compelling business stories.

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Promissory note investing offers a lucrative alternative to traditional real estate investing, with the potential for significant returns and less hassle. Tiffany Alexander's journey and insights provide a comprehensive guide for businessmen and entrepreneurs looking to explore this investment method. By understanding the nuances of note investing, sourcing and evaluating notes, and employing effective strategies, investors can unlock new opportunities for wealth building.

For more detailed information and to start your journey in promissory note investing, visit Tiffany Alexander's resources below. Take the first step towards diversifying your investment portfolio and achieving financial success.

🌐 Website: https://aspensagefund.com/

🔗 LinkedIn: https://www.linkedin.com/in/thankfulinc/

📹 YouTube: https://www.youtube.com/@aspensage

📸 Instagram: https://www.instagram.com/tiffsinvesting

📘 Facebook:https://www.facebook.com/tiffspacecadet/