What to Consider When Buying RE Promissory Notes

Real Estate attorneys Douglas Praw and Katelyn DeMartini co-authored an article for Law360 examining the concept of purchasing promissory notes secured by real estate as an alternative investment strategy. The article provides an overview of note purchases, outlining the potential advantages such as earning passive income from loan payments or acquiring the underlying property through foreclosure at a discount. It also analyzes the associated risks, including borrower default and market factors impacting property values. The authors emphasize the importance of thorough due diligence on the borrower, property condition, title status, exit strategies and legal considerations.

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