The Real Estate Investing Club 🏦 How to Earn 10% Returns Without Owning a Single Property
Join an active community of RE investors here: https://linktr.ee/gabepetersen
WHAT IS NOTE INVESTING AND WHY SHOULD YOU CARE? 🏦
In this episode of The Real Estate Investing Club, host Gabriel Petersen sits down with Eddie Speed — the founder of NoteSchool.com and a 40-year real estate veteran with over 50,000 note transactions under his belt. Together, they pull back the curtain on one of the most overlooked and underutilized strategies in real estate investing: buying mortgage notes. If you have ever searched for a way to generate truly passive income without the constant headaches of tenants, toilets, and repairs, this conversation will open your eyes to an entirely different — and highly profitable — side of the real estate world. 💰
WHY BEING THE BANK BEATS BEING THE LANDLORD 🏡
Most real estate investors default to buying rental properties because that is what they know. Eddie Speed challenges that assumption entirely. When you invest in notes, you step into the bank's seat — collecting monthly payments, earning clearly defined interest, and getting paid before anyone else in the capital stack. Notes have historically thrived when other real estate strategies struggle, especially during periods of high inflation and rising expenses. In today's market, where operating costs are eating into landlord margins faster than rents can keep up, the case for being the bank has never been more compelling. 📈
HOW MUCH CAN YOU ACTUALLY EARN FROM NOTE INVESTING? 💵
One of the most eye-opening moments in this episode is when Eddie reveals what his investors are currently averaging in returns: around 10%. That is dramatically higher than what most rental properties produce in today's environment. He explains that 40% of all loans being originated right now are non-agency loans, meaning they carry higher interest rates than conventional Fannie Mae or FHA products. That gap in the market is creating exceptional opportunity for everyday individual investors who learn to identify quality borrowers and well-secured collateral — no bank required.
HOW TO UNDERWRITE AND BUY YOUR FIRST NOTE 🔍
Eddie walks through his exact framework for evaluating a note before purchase. The two foundational questions he always asks are: can the borrower pay, and will the borrower pay? He examines income capacity, payment history, and credit to answer both. He also requires a minimum of 15 to 20 percent equity cushion in the underlying property as a buffer against downside risk. Low-quality or distressed collateral is an automatic disqualifier. NoteSchool has built a complete decision-tree curriculum to guide beginners through these exact steps, along with a proprietary marketplace where students can find pre-vetted quality notes without having to build a sourcing operation from scratch.
Explore note investing further by visiting noteschool.com or watching Note School TV on YouTube, where you will find real stories, beginner tutorials, and everything you need to start building financial freedom through the power of being the bank. 🎙️
#RealEstateInvesting #NoteInvesting #PassiveIncome #FinancialFreedom #RealEstateInvestingClub
Want to learn more about our guest? Connect here: noteschool.com
Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen
Join the Online Community here: https://linktr.ee/gabepetersen.