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Investing for Cash Income With Promissory Notes – Investing Valuation and Appraisal

Cash Is King

In today’s economy cash income is king. If you need some additional income monthly to cover living expenses—cash is king; if you need to save for a special future event, such as college expenses, or replacing an old car—cash is king; if you need to save for your retirement—cash is king.

Using Promissory Notes

Investing in notes for high-yielding, secured income is an excellent choice.

Before commercial banking was invented, dealing in notes was the primary investment vehicle for the individual investor. Note investing has been in constant use for several thousand years by farmers, manufacturers, house and land sellers, and private investors.

What Are The Advantages of Promissory Note Investing?

• You can invest in notes that are current and paying positive cash-flow yields.
• You can invest in the type of note that fits your needs and understanding.
• You can invest an amount that fits your budget.
• You can invest in notes located near your residence or within your state.
• You can invest in conservative or speculative notes.
• You can invest in low yielding or high yielding notes.
• You can invest in short-term or long-term notes.
• You can partner with another investor or with multiple investors.
• You can sell your investment position or sell part of it.

How Popular Is Note Investing?

Today, note investing is not a widely known or widely used investing strategy. Because Wall Street does earn commissions from it, there is no national Promissory Note Market. Note investing today is an “under the radar” investing strategy.

Yet, on a daily basis, many thousands of private investors buy, sell, and invest in promissory notes, locally and nationally. In order to do these transactions they use personal contacts, attorneys, real estate agents and mortgage brokers to facilitate transactions.

How to Build a High-Yielding Cash Machine

Your goal should be to develop a dependable stream of income that does not require constant, time consuming effort. Ideally, it should provide you with a yield that is above the typical bank and stock market returns and yields that are below that of speculative, risky investments. In today’s financial world a safe, secured 7.5% to 9.5% yield would be a reasonable income range to seek.

As an investor, the first step toward building your income HULT PRIVATE CAPITAL stream is to evaluate your own financial situation, and your own emotional situation. Do this before you invest so that you are able to identify suitable promissory note investments that fit your comfort-level, capabilities and needs. In order to help you do the self-evaluation, here are some key steps. Clearly define and understand the following:

• How much do you plan to invest now?
• When will the funds be available for investing?
• In the future will you have additional funds to invest?
• How much of your time do you plan to spend doing hands-on investing?
• How qualified are you now to do promissory note investing on your own?
• Do you need a mentor, or a guide, or an advisor to protect your investments?

Final Thoughts

• Don’t invest in hope. Do your homework, or pay someone to do it for you.
• Don’t try to run before you have learned to walk.
• Don’t try to become an “overnight expert”.
• Do smaller, safer, lower yielding deals as learning experiences.
• Use experienced professional help as insurance against big losses.

Lawrence Tepper specializes in:

Promissory Note Appraisal & Valuation–and LLC Valuation and Appraisal

Expert Consulting Services


Law Degree /Accounting Minor University of Denver

Colorado Real Estate Broker– Promissory Notes Specialization

Certified Commercial Investment Member From National Assoc. Realtors (CCIM)

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