Real Wealth Show: Real Estate Investing Podcast · Kathy Fettke / RealWealth

Why Note Investing Is Booming: How to Buy Mortgages with Eddie Speed

·28 min·1 clip

Eddie says the average mortgage payment is 138% higher than rent on the same house.

1. The Real Wealth Show episode centers on note investing and Eddie Speed’s case for why buying mortgages is active right now. 2. Kathy Fetke hosts, and Eddie Speed joins as a note investor with 45 years in the business and tens of thousands of notes under his belt. 3. The conversation asks whether being the bank through seller-financed notes is better than being a landlord in the current cycle. 4. Eddie says 2021 was a poor year for the note business because rates were very low and residential loan origination was strong. 5. He contrasts that with 2009, when his team bought defaulted loans at 20 cents on the dollar and benefited from distress. 6. Eddie says the residential loan origination market has fallen from about $4.5 trillion in 2021 to about $420 billion this year. 7. He uses that collapse to argue that the note business tends to do well when banks and mortgage companies do poorly. 8. Eddie explains that his main niche is buying seller-financed notes, not only discounted loans. 9. He says he has bought 50,000 seller financed notes and that the broader market creates about 100,000 seller financed notes a year. 10. He distinguishes between mom-and-pop sellers and professional real estate investors who originate seller financing repeatedly. 11. Eddie says his biggest client created $50 million in seller finance notes last year. 12. He describes typical deals as properties with 10% to 15% down, good credit, and verifiable income. 13. He says many of these borrowers are priced out of Fannie Mae or FHA financing, especially in the Hispanic market. 14. Eddie gives non-QM mortgage rates of about 9.5% to 10.5% as the relevant market backdrop. 15. He says he can buy part of a payment stream, such as $1,200 of a $2,000 monthly payment, and leave the seller with the rest. 16. Eddie says note investing fits because the investor owns the first mortgage, collects monthly interest, and avoids landlord expenses like maintenance and insurance. 17. He describes the tone as practical and experience-heavy, with Kathy pushing for examples and Eddie answering with market numbers and deal structure. 18. The format stays interview-based and conversational, with repeated references to underwriting, leverage, and portfolio diversification. 19. Real estate investors, self-directed IRA holders, and busy professionals looking for alternatives to rentals would likely value this episode. 20. People wanting stock-market commentary or beginner-level real estate basics may skip it.

As heard by us

A practical look at being the bank instead of the landlord.

The episode centers on note investing and makes a clear case for shifting from landlord mode to acting as the bank. Kathy Fetke and Eddie Speed stay focused on the mechanics: buying whole notes or slices of payment streams, targeting properties with equity, and showing how being…

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Learn why note investing can let you be the bank instead of the landlord.

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