The reason a Purchase Money Note, as a debt instrument is preferable is because of the possibility of a seller-come-creditor having some ability to have recourse on the borrower, where it it is argued that obligation is a promise to pay by the purchaser.

NPL's trade at the discounts they trade at due to the lack of cash flow and the additional capital costs to enforce the remedies provided in the note and security instrument.

Great response from Jon.If you borrow the funds needed from someone you know, you can record a second lien againstbthebpropertybto provide your lender a security instrument.

They all have varying criteria for the note and security instrument as well as the geography and other parameters.

They use demographic research to predict where demand will be and therefore increase prices.

The market is turning to a sellers market and the time will come soon that there may no longer be any great deals in the market - at that point I would still rather invest in securities instruments (mutual funds, REITs, index funds) or another investment vehicle.

My prediction is that the deal will stand, the note will be thrown out as unenforceable, the note holder walks with what they got and if it was predatory, a fine to boot.

I predict that John Thedford is going to meet his real estate goals this year!

These instruments were created to differentiate what a distributee is receiving, specifically title to real estate as to the condition that existed when the decedent owned it.

I don't know if all the above potential deals will materialize but here's the bottomline: Biggerpockets is instrumental in making the above connections happen.