Its just a promise to pay, and if they loose their job, or a leg, or a spouse, or any other reason, it could force them to stop paying, and if they can't start repaying, ultimately you would need to get a Deed-In-Lieu, or foreclose.Also, not to split hairs, when you buy the note, you are not the lender, you are just the note owner who receives all future payments; you never lent any money.

My wife was downstairs in the basement cutting someone's hair.

In my opinion It's not ideal for rental.. at least here in the US (I noticed you are in Canada... not sure how it works there)Here you have to pay property taxes and insurance... you obviously need to pay for maintenance as well as property management (even if you manage yourself consider that your time = money)... you also need to take into consideration initial vacancy and the fact that sometimes it take couple of tenant's before you get a good one that stays very long termHere once I take all my costs out I tend to make approx 30% of my rent in the first year50% in year two and three 60% afterwards If rent is $1200, it would me bring net $400 avg first 12 months ($4800 first year), $600/mo second year, $700/mo afterwards... probably a hair more if I include a rent increaseYour interest payment after the first year is going to be approx $700/mo... which means you are barely making it.

Conversely, if you want to get into assets with some "hair" on them, but potentially higher yields and you have a tolerance for some risk, then a non performing note in the low price band could be a good place for you.

It's an affidavit that deals with a lost mortgage and that the current hold affirms they are the bona fide owner with power to satisfy the debt and that the debt is then satisfied.  

You are affirming that you are buying it as your primary residence.

If they receive cash (bartenders, hair dressers, etc.), then I ask for last year’s tax returns.References: Ask for references other than family (call at least three references).

that's a very good questionmy answer is many of the metric's folks use to decide what a good deal is and what is not, are very regionalized... whats a great metric in one market may not even be remotely possible in another.perfect example is the west coast buy and hold investor pulling their hair out trying to find a 2% deal.. and realizing they either don't exist or are so rare that you would be super lucky to find one.And those in other markets were the 2% rule props are on every block literally and they won't buy them unless they are at least that or much higher in some instances.So this puts investors in a paralysis mode not being able to buy ...

Afterwards, I took all of this $7000, and invested it in real estate courses, books, networking events and more so it could bring me even closer to my goal of being financially free before the age of 30.Having read all of this, the affirmation “you need to be rich to succeed in real estate” is a MYTH!

I'm completely guessing, but I think with all those costs, I can still come out with about $50,000 in my pocket (and a few more grey hairs more than likely).