Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome to an Now here's your host, Marco Santorelli.

Hello, my friends and welcome to another episode of Ask Marco

where I answer your investing related questions.

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subscribe today's question is an interesting one it comes from

Melissa and her question generally is what are the pros and cons of

investing in notes and this came about because she saw on our

website recently that we have a new opportunity and that is to invest in notes, more specifically promissory notes.

And for those of you that don't understand what a note is, I'm going to explain it to you today.

Interestingly, this question has come up a few times because I've had this on our website for about, oh geez, maybe three or four weeks now, and it's not something new. I've actually been offering note investments on and off for many years. In fact I think it goes as far back as 2013 and there was a three year period in there which I believe was 2015 through 18 if I'm not mistaken where I was offering promissory notes tied to real estate so essentially real estate notes for properties that we were buying fixing and either flipping or buying fixing and

holding mostly I'd say 99% of them were for properties that we were buying

fixing up and then reselling either as turnkey rentals or retail sales.

So this is something that has been around in my world for a while, but note investing

has been around for decades.

In fact, it goes back a long, long way because in its simplest

form a note is really just an IOU. It's a loan. A bond is a note. Notes come in different forms and under different names, but essentially a note is just two people coming together to lend one another money that is repaid over time.

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