These are two questions that I get asked a lot. Let's look at what a Note Partial is and break it down. What is a Note Partial (a stream of mortgage note payments)? - It's an opportunity to buy and sell Partial Payment Streams, known as Note Partials. A Note Partial Purchase offer allows the Note Owner of an existing cash flow instrument, such as a Reperforming Mortgage Note, to sell a portion of the rights to collect future payments to a third-party buyer for a lump sum of cash. - Selling a Note Partial gives the Note Owner a great amount of flexibility. Partials are always a great tool to use when the Note Owner has an immediate cash requirement and only needs a specific amount of money to cover a specific situation or for a specific purpose, such as to buy another Mortgage Note. - A Note Partial minimizes the discount and frees up cash. It is the best of the best. The terms of the Promissory Note remain the same for the Promissory Note with the Borrower. The only thing that changes is the mortgage payments are directed to the Purchaser of the Note Partial.  This works the best if the Note Partial Seller and the Note Partial Purchaser use the same Mortgage Loan Servicer. - The Agreement used for a Note Partial Sale & Purchase is a Note Partial - Receivable Purchase & Sale Agreement. This Agreement spells out the Terms that both parties agree to.  This important document outlines the servicing arrangement along with what happens in the event of an early payoff or default by the Borrower. If I sell a Note Partial (a stream of mortgage note payments), is there an Allonge & AOM created to the Note Partial Buyer? - I was recently asked a similar question. The answer is that it's not required, but it depends on what the seller and buyer agree to. My disclosure: I'm a 2nd Mortgage Note Investor.  All my experience is selling 2nd Mortgage Note Partials.  When I sell a Note Partial, I personally don't create an Allonge & AOM to my Note Partial Buyer. The reason I don’t create an Allonge & AOM is that I only sell some of my mortgage note payments, not all of them.  It comes down to the language in the Note Partial - Receivable Purchase & Sale Agreement and what both parties agree to.

Wow what a race we had this month for the top of the 30-day leaderboard!! October's winner @Iván Terrero & @Kareem Aaron were back & forth all month - with Kareem just squeaking out the win on the last day of the month (190 points to Iván's 187) Special recognition to @Jordan Adamczyk for the 3rd place with 45 points - nice work everyone! Kareem - check your email to share your Venmo/Paypal and get your "one payment partial" of $129.97. What is a one payment partial? One of the reasons mortgage notes are so powerful is their divisibility: you can split a performing, cash-flowing note into separate assets and sell ownership of current or future payments. Note investors use "Partials" (contract template here for VIP Accelerator members) to sell a slice of the future cash-flow of a mortgage note. For example, you might buy a non-performing note for $10k, modify it with the borrower for monthly payments of $300 for the next 7 years (84 payments) and then sell the next 48 payments (4 years) to an investor for ~$10k to recoup your investment. In 4 years, your buyer's partial payments will be over and you'll get the $300 per month again for the next 36 months (or until the loan is paid off). In this case, we're using a "one-payment partial" as a hands-on learning opportunity to give the winner of our 30-day leaderboard a monthly payment of $129.97 (the exact monthly payment of one of our modified loans that recently paid off). And how do you win it yourself in December? Don't be intimidated by the big numbers on the leaderboard! These totals reset every day to only reflect the last 30 days of activity. So if you start posting, commenting & participating today - you'll have a good chance of being the top of the leaderboard in 30 days!

I just looked at the due diligence video on youtube that Bill McCafferty did,it was very well done. It gave me insights into the note business that I won't get until I invest and actually do it. That's what a thousand plus notes will do for you.

Hello all, I'm new and I'm in the learning process altogether as far as notes. I'm curious about what kind of advice y'all have about vacant land -- I know that it's one of the more unpredictable assets. What kinds of questions should I (as a note buyer) ask the seller if the topic is specifically mortgage notes for land? What characteristics should I consider red/green flags in my seller/borrower?

Let's get things started off right with a post about you & your goals in the industry. Make a reply below and tell us: - What's your professional background - How you heard about note investing - Why you'd like to learn - Where you're looking to go with your business Then like & respond to one of your new colleagues post to start earning points to move up the leaderboard (and get a chance to win our monthly contest).