Newsletter – April 2026-“Note Investment Strategies”

What is a Partial and how do you add Partials to your investment tool kit?

Have an existing Note and need short term cash?  Looking for a short-term source of cash flow?  Have limited capital but want to get into Note investing?  If any of these are true, a Partial can be the solution you are looking for!!  

Self-Directed IRAs – What is it and Do I need one?

A Self-Directed IRA account gives you greater control over your investment choices, allowing you to explore options beyond traditional stocks and bonds. These accounts are easy to set up, and custodians offer guidance to help you navigate investing within the rules of these specialized accounts. Expand your investment opportunities and diversify your portfolio by taking advantage of a Self-Directed IRA (SDIRA).

Check Property Taxes

Unpaid Property taxes are probably the most overlooked aspect of owning seller financed Notes.  If taxes go unpaid, certificates are sold and eventually the house can be lost in a tax sale.   

Checking is simple and quick.  Go to your county property tax site and confirm that all current taxes are paid.   If they are not paid, contact the borrower and determine a payment plan.  If necessary, move to collecting tax in escrow to ensure borrower stays current.  

NOTE: Florida 2025 property taxes were due on 03/31/2026, so any unpaid taxes are now delinquent!

Use a SDIRA to invest in Notes

Utilizing a Self-Directed IRA (SDIRA) to invest in mortgage notes can be an effective way to diversify your portfolio while generating consistent returns. While all investments carry some level of risk, mortgage notes are generally considered lower risk because they are secured by real estate.

Self-Directed IRA accounts provide the flexibility to invest in a broader range of opportunities that traditional and Roth IRAs typically do not allow. By setting up an SDIRA with a qualified custodian, you can begin investing in mortgage notes using your retirement funds.

Notes provide 2X return over Rentals

While landlords have enjoyed increased rents, expenses have increased at a much greater rate dropping the overall return.  And most leases are renewed on an annual basis so market changes are quickly realized.  In addition, rentals require a significant time commitment for upkeep and maintenance  

Using Notes, the monthly payments are set for a long period, normally 15 to 30 years.  Expenses and time to support are minimal and there is no upkeep on the home!   Note ownership allows you to get a set rate of return for the duration of the loan with minimal time commitments, netting double the return received from rentals!