Investing in real estate doesn’t always mean buying physical properties—note investing is a lesser-known but highly rewarding strategy. In this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Nathan Turner, owner and president of Earnest Inc. (also known as Earnest Investing). Nathan entered the U.S. real estate market in 2008 by creating notes, eventually transitioning into buying both performing and nonperforming notes.
Jonathan and Nathan discuss why he chose notes over traditional property investing and how his journey evolved from fix-and-flips to purchasing mortgage notes. Nathan shares the moment he realized he could build wealth and help struggling homeowners, offering insight into the current market, the scarcity of nonperforming loans, and where the industry is headed. He breaks down the tools he uses to find notes, the barriers to entry, and why education and networking are crucial for success.
During the episode, Nathan shares more about:
- A note is a promise to pay, usually backed by real estate, and it can be a mortgage, deed of trust, or seller financing.
- Notes have several advantages over physical real estate, including cash flow without managing property and no tenants or property maintenance.
- You can begin note investing with as little as $10,000.
If dealing with tenants or maintenance holds little appeal, note investing can be a great way to invest in the real estate market without the hassles that people often bring. Nathan Turner’s expert advice can help you decide whether or not this asset class is right for you.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/230/.