Know and understand what a closing statement basically is.. and who the true principals are in the transaction.. 

@Jeff S.Speaking of recourse loans…https://therealdeal.com/new-york/2024/11/27/acres-goes-after-personal-assets-of-tides-equities-principals/

Patience, I believe, may be the best practice to recover principal.

If the amount paid to purchase an existing note is below the principal balance or more correctly, the unpaid balance, the investor will benefit from an early payoff to the tune of the discount.  

For simplicity, I've assumed no principal paydown on the original $300,000 mortgage.After two years: $400,000 × (1 + 8%)^2 × 75% - $300,000 ≈ $49,920After three years: $400,000 × (1 + 8%)^3 × 75% - $300,000 ≈ $77,914After four years: $400,000 × (1 + 8%)^4 × 75% - $300,000 ≈ $108,147While the above example is oversimplified, the concept is valid.

I agree, its easy to say oh I want cash flow, but ultimately, most of the gains are made with appreciation and principal paydown over long periods of time. 

Very good point on the paying down of principal. 

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

Here's the terms:FOR VALUE RECEIVED, XXXXX a limited liabilitycompany (hereinafter referred to as "Maker*), hereby promises to pay to MY NAME,whose address is redacted (hereinafter referred to as"Holder"), or order, the principal sum of $XXX,000.00 in legal tender of the United States, accruing interest at an annual rate of 18.0%.

The note investor can set up a deal where the borrower deeds part of the property to him for cancellation of a certain amount of principal.