Newbie with a not question

i'm new here so bear with me. if notes are other peoples debt that you are purchasesing how are they profitable? are they similar to tax liens or any liens for that matter.

and if i'm completley wrong can someone please tell me what these paper notes are? confused

thx in advance
yan14

Comments(1)

  • loanwizard27th March, 2003

    All notes are not profitable. A note is a promissory agreement between a buyer of goods sold and a lender (owner of said assets) The seller is agreeing to take payments in lieu of lump sum cash. He/she may or may not charge interest. What makes a note profitable to an investor is that a note holder may sell the note at a significant discount which increases the effective yield (interest) rate on the note. If the payor pays the note off early, it increases the yield.
    Hope this helps.
    [addsig]

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