Note Investing: State of the Market, Fundamentals, and More with Fred Moskowitz

Passive Wealth Strategy Show - Real Estate for Busy Pros

Fred Moskowitz, a note investing expert, discusses the tax liability associated with note investing and how it differs from real estate investing. He shares his insights on navigating these unique tax implications and maximizing your returns. Fred compares and contrasts the note investing space during the great recession to today's rising interest rates and other conditions. He provides valuable insights on how investors can adapt their strategies in different market conditions.

Fred also shares how he financed his first few note deals through profits from real estate investments. He emphasizes that while investing in notes can be capital intensive, starting with buying a couple of notes on your own is possible. As you gain experience and expertise, transaction sizes can increase.

This episode is packed with valuable insights and actionable advice for anyone interested in note investing. Tune in now to learn more!

[00:01 - 08:26] Opening Segment

• Guest Fred Moskowitz discusses note investing and becoming the bank by investing in debt.
• Fred compares note investing conditions post-recession to today's rising interest rates.
• Note investing provides stable and predictable cash flow, making it an appealing investment opportunity

[08:27 - 16:52] How to Start Small and Grow into Larger Transactions with Self-Directed Retirement Accounts

• Note investing can be capital-intensive, but starting small is possible
• Buying larger pools of notes allows for better discounts and access to deals
• Self-directed retirement accounts are a powerful strategy for note investing
• Notes generate a tax liability, making self-directed retirement accounts even more beneficial
• Investing in debt through self-directed retirement accounts does not incur certain taxes

[16:54 - 25:03] Insights on Larger Transactions, Rising Interest Rates, and Preferred Note Types

• Larger transactions mean buying more notes at once
• Notes are available in all sizes from $5,000 to millions
• Transaction size gives more options and flexibility
• Interest rates impact pricing, but supply and demand are the main factor
• Non-performing note investing has higher risk but the potential for greater returns

[25:04 - 34:23] Closing Segment

• Best investment: an opportunity to invest in a local community bank
• Worst investment: buying some notes
• The most important lesson learned: investing in yourself

Quotes:

"I came to the realization that I needed to have other sources of income so I wouldn't be so dependent on the paycheck for my job." - Fred Moskowitz

"The best thing that we can do as investors is to be nimble." - Fred Moskowitz

Connect with Fred!

Book: The Little Green Book of Node Investing

Website: https://www.fredmoskowitz.com

Phone: [phone]

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

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