Please explain a basic concept to me: Equity

[Jeff L.]

I've been reading the basics of note investing, and keep coming across people recommending buying notes that have a lot of equity. I don't quite understand it and was hoping you guys could explain it to me (I'm sure it's a really basic concept I'm just missing).

How does equity come into play in notes investing and why do you care about it? When looking at purchasing a note, why does equity matter?

Aren't the numbers you care about mainly 1) the price of the note and 2) the as-is value of the house (the price you'd sell it at in case of foreclosure)?

Some basic examples with numbers would be amazing. Thank you!