Why You Need To Understand Your ‘WHAT’ When Note Investing

When it comes to real estate note investing, many people focus on their “why” – the reasons behind why they invest.  These are always really personal:  you want money for your child’s education, you want retirement money, you want a ‘side gig’, you want to be RICH. 

However, it’s just as important to consider your “what”!  HUH? 

What I mean by that is: 

  • WHAT do you need right now?
  • WHAT does your risk tolerance look like?
  • WHAT type of cash or cashflow is right for you, right now?, and
  • WHAT your end goals are both short term and long term.

Knowing your personal motivations and goals is crucial, but knowing your WHAT will shape your investment decisions and help you achieve success.

Many opportunities are out there: 

  • Multi-family,
  • Buy and Hold rentals,
  • Short Term Rentals,
  • Notes,
  • Fix ‘n Flip,
  • Wholesaling,
  • Assisted Living

– there are a TON of options.  It can be paralyzing trying to figure out WHERE to start, or which one to dive into.

I encourage you to take some time to check in with yourself (and keep doing this at least once a year) and determine what your “WHAT” is. Ask yourself…. 

WHAT do I need RIGHT NOW for note investing?

  • Do I need chunks of cash, or am I looking for a steady stream of cash flow?
  • Am I in this for the short-term or the long-term?
  • Are you using your self directed IRA funds?
  • Do you want to be very passive or active?
  • Do you need monthly income to quit your job?

Why is this important? Here’s an example: If you are a short term real estate investor (meaning you need your cash out of the investment more quickly – Buy and Hold Rentals are a long term play, so that type of investing may not  be right for you. 

If you are a long term investor, you may not want to Fix ‘n Flip -as that is typically a quicker turnaround of 3-6 months. Knowing your WHAT will help you here! 

By knowing what you need RIGHT NOW – it’ll tell you what type of investing is good for you right now. And it changes as you grow as an investor. 

What is your risk tolerance?

Know the pitfalls, do your due diligence. A fix and flip situation might have more risk depending on the market. But note investing has 23+ exit strategies – so that might be a safer route for you. You have to know what you are willing to risk, how conservative or risky you are, and what real estate investing strategy fits your risk tolerance. 

How much monthly cash flow do you need for note investing? 

Will the investment help you achieve that? 

Will your needs change over time?

Your WHAT may change as you grow as an investor – so you may want to check in every 6 months, nor every year at a minimum. As you grow and evolve as an investor, your investment style or risk tolerance may change, but staying true to your personal motivations will ensure that you make the right decisions for yourself.

If you’re ready to embark on your journey to real estate investing success, don’t miss this video – it could be the start of a successful and fulfilling investment career.


Get the 411 in this quick easy to digest video series, so you have a more comprehensive idea of what it is and if it’s the right next step for you.



Paige Panzarello is the “Cashflow Chick”. Having been a Real Estate investor and entrepreneur for almost 25 years, Paige has experienced many facets of real estate investing. Her experience includes founding and running her own Residential and Commercial Construction and Acquisition companies, Buy and Hold residential and commercial real estate investing, Tax Deeds/Liens Investing, Fix and Flip (Residential Remodeling), and other forms to name a few. She currently focuses on Non-Performing Notes that she purchases all across the United States. Whether in notes, residential or commercial real estate, in California, Arizona, or nationwide, Paige has been successful in completing over $150 million in real estate transactions to date.

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