@Michelle Vu & @Richard Capatosto welcome to BP and to this community. There are many nice and knowledgable people here. @Account Closed It's technically similar, except that typically you'd buy a seasoned note on a personally owned property. Let say someone buys a house with a seller financing with 20% down, at 7% loan 15 years amortization rate. That 80% seller's loan will be recorded as a lien on the property. Later on, say 10 years later the seller needs a lump-sum of cash, the seller can sell that note to some one else, let say you. So now the buyer will be paying the remaining monthly payment to you. Typically the seller will take less than the note's value to get the lump-sum. That way your yield is actually much higher than the original 7%.
If the buyer fails to pay; you, being the lien holder, can actually foreclose the property on the buyer. Although messy, you may end up getting a property for quite cheap. Still takes a bit of research to find good notes. Did you say you don't want any work at all?? :)
Actually, if Note's too hard, RIETs is too boring, but you absolutely have no time, maybe buying turnkey properties is the way to go.
If turnkey produces too little, then you gotta talk to Yoda :)
