Discount note investing durring different market cycles

[Tom Dillon]

I've always been a fundamental real estate investor, buying single family homes in Austin after the stock market dot com crash when foreclosures were plentiful and renting them until the market came back. Moving into value add apartment buildings in Arizona and Texas, after the 2008 crash, when prices were dirt cheap. 

As the market recovered, and building became cheaper than buying, we went into some new development deals. 

Now prices are high and we are selling into demand taking profits. So capital is coming back. Great! right? Well kind of. Capital doesn't cash flow by itself, and a CD isn't going to keep up with inflation let alone give a return.

So what to do?

I'm exploring discounted notes. Looking into PPR's Note Fund. 

Is it a bad idea to invest in notes with the market heading into higher territory? Is there enough of a discount built in, to protect my capital and still cash flow through a market correction?

Looking for input, thoughts, experience.