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Taylor welcomes Benjamin Fredericks, an experienced note investor and mortgage professional. They discuss Benjamin's unique approach to note investing and participating in the note space. Learn how Benjamin got his start by buying rental properties and then transitioning into buying properties in bulk at auction and selling them on terms of seller finance to create notes. He has a background in mortgages, which helps him understand how to underwrite credit and what to look for when creating notes. Find out how he focuses on C-level properties in working-class neighborhoods, providing opportunities for people who may not qualify for traditional mortgages.\xa0\n\xa0\n[00:01 - 05:50] Opening Segment\nBenjamin Fredericks\u2019s unique approach to investing and participating in the note space\nMost of the properties he buys are C-level, working class neighborhoods in smaller towns in the Midwest\nHe creates notes by buying properties at auction in bulk and then selling them on terms seller finance\nHis approach involves underwriting borrowers who may not have 20% to put down or have had credit hiccups in the past\n\xa0\n[05:51 - 13:35] Selling Notes in a Rising Interest Rate Environment: Understanding the Basics of Note Sales\nCompliance with the Dodd-Frank Act is required\nReturns on notes are typically between 20-50%, sometimes infinite\nNotes can be sold in the secondary market\nBuyers of notes are typically people with self-directed IRA funds\nRates for notes are typically between 9-10%\nPayment history affects the value of a note in the secondary market\nRising interest rates have not impacted note rates\n\xa0\n[13:36 - 19:20] Digging Into Partials: Exploring the Benefits of Investing in Real Estate Notes\nInterest rate is a non-factor\nPartials are an interesting way of practicing in the real estate space\nUtilizing other people's money in deals through a joint venture or private money lenders\nMaking connections with note investors through events like Noteworthy and local Real Estate Investment Organizations (REIOs)\n\xa0\n[19:21 - 23:34] What to Do Before Buying Properties\nPhysical due diligence of properties when buying online is minimal\nKnowing how to do proper due diligence when buying a note\nMaximizing the value of a note by having the right paperwork in the package\n\n[23:35 - 29:20] Closing Segment\nThe biggest mistake for new note investors is not having enough education on due diligence and maximizing the value of notes\nThe worst investment is a lake lot that is a drain on finances every month\nThe most important lesson learned in business and investing is to stick to data, not drama\n\nConnect with Benjamin by visiting www.NoteWorthyUSA.com\xa0\n\xa0\nInvest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/\nParticipate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.\nJoin our Passive Investor Club for access to passive commercial real estate investment opportunities.\nLEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\xa0\n\xa0\nQuotes:\n\xa0\n"(The note space) is bad for the people that don't do good business, but it's great for the people that you know do. And I think it's nice because it's a lot easier to form relationships." - Benjamin Fredericks\n\xa0\n"Sometimes the best deal you ever do is the one you don't do, and so just stick to the data, stick to your numbers, and if it fits your buy box, great. If it doesn't, don't worry about it." - Benjamin Fredericks