On a recent note mastermind the question came up about stress-testing a note portfolio. This is a great idea from time to time. But what does that mean? How do you stress test a note portfolio? In short, look at your note portfolio and determine how it might perform in the event of a shift in the economy. How strong is your portfolio if the general public starts missing … [Read more...] about 3 Ways To Recession-Proof Your Note Portfolio
inflation
Inflation and Note Investing
There is a lot of talk lately about inflation. But what about inflation and note investing? It stands to reason inflation has people worried after we kicked off January and February 2022 with some unusually high numbers (7.5% and 7.9% respectively) — or so we thought. Then March and April were even higher at 8.5% and 8.3% respectively. NOTE: Keep in mind those are … [Read more...] about Inflation and Note Investing
What’s the Big Deal with Note Rates?
The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Here’s why the interest rate on a note is such a big deal. Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s … [Read more...] about What’s the Big Deal with Note Rates?
