How do you effectively invest in Mortgage notes

[Bomani Nantambu]

My partners and I are getting our feet wet and renting out single family homes in the city of Detroit.  But I think that a way to raise passive funds to increase the amount of money we can put back into the company over time.  My first question that I would like some insight on is this a sound strategy and secondly if so what are the strategies that can be employed to minimize your risk of loss because as with all things you invest in you will at some point take a loss.  I encourage both sides of the coin to express their viewpoints I am just trying to understand the Mortgage note sector of real estate investment.