This is sound advice given the volatility of the financial market as evidenced by the global market performance in the last decade. We experienced financial crisis in the late 90s to the credit crisis in the latter part of this decade and it may take a while before we could recover from these economic pitfalls. While those who have low tolerance for risk have opted for time deposit placements and mutual funds, there are some who rise to the challenge and venture into stock markets as a means of creating wealth or increasing whatever resources they have. These days, a lot of investors are diversifying their portfolio with real estate mortgage notes. People also sell notes to cash in on the quick buck they make from the sale. Diversifying your portfolio when you buy notes minimizes your exposure in stocks, thereby minimizing the risk, but at the same time increases expected returns as investments in mortgage notes for sale have relatively more yield than a conservative time deposit placement. More and more investors are exploring investments in real estate backed investments such as discounted real estate mortgage notes due to the fact that real property is highly tangible collateral, it increases its value over time and investors can be further protected from damage from natural and man made calamities through insurance. The overall protection that these types of investments are born with makes them more and more appealing even to conservative investors.There are websites that provide a platform where people can buy and sell notes like FCI Exchange. The typical setup for a seller is to create an account where the property can be posted and notes for sale can be updated. Similarly, buyers also setup an account for them to see if there is a possible match for the investment they would like to make. For most paid accounts, both sellers and buyers are screened to ensure that these are legitimate. Of course due diligence is still required from both sellers and buyers. While most of these platforms are simple, careful attention is given to details to ensure that posts are serious and credible. Additional documentation such as copies of notes, deeds, and mortgages are requested to be attached by sellers while documentation for buyers as proof of funds may be required such as copies of bank statements, a letter of credit, or other form of financial statement to validate postings.

Investing in real estate secured notes is basically lending a certain amount of money to a person or an entity. In this case, the loan is guaranteed and backed by real estate. The note states the terms and obligations by the borrower to the investor, the dates of payments, the agreed interest rate, maturity date, and any provision in case of default. In cases of default, the note, may authorize the investor to foreclose on the property and sell it at a profit to recover the initial investment and any interest or cost of money involved.