Buying Loans At A Discount Site
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Most people think of lending as a "primary" activity—you give money, they pay you back. But the real meat is often in the . Buying loans at a discount allows for two types of gains: buying loans at a discount
It’s one of the few ways to find "mispriced" assets in a crowded market. Just make sure you’re comfortable with the credit risk! 📉 Most people think of lending as a
You still collect the monthly interest payments based on the original loan terms. Just make sure you’re comfortable with the credit risk
Buying loans at a discount—often referred to as purchasing "distressed debt" or secondary market notes—allows investors to acquire debt for less than its face value. This can occur when a lender wants to liquidate their position quickly or when a borrower’s financial situation has worsened.
Achieve "pull-to-par"—where you collect the full principal and interest over time, significantly boosting your effective yield. Option 2: Strategy-Focused (Investor Blog/Newsletter)