What if you could stop chasing deals and start collecting payments like a bank? In this eye-opening episode, I sit down with Patrick Franz, founder of Note Investor University, to explore the power and potential of note investing—an often-overlooked strategy that’s changing the game for savvy real estate investors. Patrick pulls back the curtain on how owning mortgage notes can create more security, scalability, and true passive income than traditional rentals or flips.

Whether you’re tired of toilets, tenants, and turnover or just looking for smarter ways to grow your portfolio, this episode is packed with insight. We talk about the difference between owning real estate and owning the paper behind it, how to find and evaluate notes, and how you can leverage private capital to build a cash-flowing note portfolio—even if you’re brand new to the space.

Timeline Summary

[1:18] - Patrick Franz explains what note investing is and why most real estate investors haven’t explored it

[2:56] - Key differences between real estate investing and buying promissory notes

[5:03] - A side-by-side comparison of the landlord model versus the lender model

[10:06] - How buying notes at a discount creates instant equity and above-market returns

[13:51] - Understanding the secondary mortgage market and how to legally step into the bank’s shoes

[17:08] - Where to find notes and why sourcing them isn’t the hardest part

[20:03] - Why notes are safer and easier to pitch to private lenders than rental properties

[22:21] - The magic of amortization and why it benefits note holders over time

[24:28] - How third-party servicers manage the process and make it truly passive

[27:12] - How to work with Patrick and what Note Investor University offers

[29:35] - Real success stories and what’s possible within just 12 months of learning and applying note investing strategies

Key Takeaways

1.You don’t have to own the property to profit from real estate – owning the debt can be even more powerful.

2.Note investing offers instant equity and stable, predictable cash flow, often with double-digit returns.

3.Notes are easier to pitch to private lenders because they are safer, backed by real estate, and not subject to market fluctuations.

4.You can scale your portfolio using OPM (other people’s money) once you master the process and build your expertise.

5.Financial freedom is achievable within 36 months with the right note investing strategy and education.

Links & Resources

•Schedule a call with Patrick: calendly.com/thenotementor

•Learn more about Simple CFO: https://simplecfo.com 

•Contact David Richter and Simple CFO: https://rei.simplecfo.com/scheduleacall

•More about David Richter: https://join.simplecfo.com/david

•Want David on your podcast? Contact us at: john@simplecfo.com 

•Browse notes: paperstac.com

•Financial clarity and coaching: simplecfo.com

If this episode opened your eyes to a smarter, more secure way to invest in real estate, follow, rate, and review the Profit First for ROI podcast. And don’t forget to share it with a friend who needs to hear this. Let’s help more investors make profit a habit in their business.