LANDLORD vs. NOTE HOLDER — Which One Builds More Wealth in 2025

What’s better in 2025 — being a landlord or becoming the bank and holding the note? If you’re tired of dealing with broken toilets, tenants ghosting you, and 3AM emergency calls — this video will open your mind to something WAY smarter. If you're just getting into real estate or you're already stacking rental properties… this lesson might change your game. Champ, I’ve been an entrepreneur since 9th grade in high school and a real estate investor since 2006. And all that time, I’ve never borrowed money from a sticky banker or held a résumé job. Today’s session—today’s lesson—is all about LANDLORD vs. NOTE HOLDER. Let’s break it down. 📦 Part 1: Why I Love Being a Landlord (But Also Why I Don't) Let’s start with what most people know: Being a Landlord. I do love owning rentals — here’s why: * ✅ Forced savings: It’s hard to just sell a house like a stock. So, it forces you to build wealth over time. * ✅ Tax benefits: You get depreciation, 1031 exchanges, mortgage interest deductions. * ✅ Inflation hedge: When inflation hits, rents usually go up, and your fixed-rate mortgage stays the same. * ✅ Cash flow: If done right, your rental pays you every month. * ✅ Long-term wealth: Over 10–15 years, rents rise, debt shrinks — you win both ways. But let me be 100 with you… Here’s what sucks: * ❌ Tenants don’t always pay. * ❌ Toilets, termites, and tantrums. * ❌ A/C units die in July. * ❌ Evictions cost time and money. * ❌ You still carry all the liability. And if you own in places like Texas, you’ll find out real quick that judges often side with the tenant over the landlord. That’s just the truth. 🏦 Part 2: Why I Prefer Being a NOTE HOLDER (aka Becoming the Bank) Now let’s flip the script. What if instead of being a landlord… you become the bank? This is what we call being a note holder. And this is where things get powerful. So what’s a note? A note is a legal promise to pay — just like when someone signs a mortgage for a house or a loan for a car. When you’re a note holder, you’re the one collecting the payments. Just like Bank of America, but without their buildings, employees, or lawsuits. 🧠 The Benefits of Being the Bank: 1. 🔧 No Repairs, No Headaches If the roof leaks or the toilet breaks — NOT YOUR PROBLEM. That’s the buyer’s issue. They own the house. You’re just collecting the check. 2. 💰 Big Down Payments Upfront When you sell with owner financing, you can collect 10%, 20%, even 30% down from your buyer. That’s money in your pocket on day one. 3. 💵 Monthly Cash Flow (The Interest Spread) Let’s say you buy a home Subject-To an existing mortgage at 3% interest. You turn around and wrap that loan to a retail buyer at 7%. You’re pocketing that 4% spread every single month — without landlording. 4. 🎉 Big Back-End Profit Let’s say you sell the house for $200k and collect $30k down. Now you’re holding a note for $170k. You’re getting monthly payments and, one day, that buyer might refinance or sell and cash you out. You get your remaining balance — that’s the back-end payday. 💡 Why This Strategy Works in 2025 Interest rates are higher, and most retail buyers can’t qualify through banks. But they can buy from you with owner financing. You're helping them win… and you're winning even bigger. And remember: you don’t even need your own money if you do this with Subject-To or Seller Financing deals. You can literally step into someone else’s mortgage, wrap it, and create instant cash flow with zero banks involved. So Should You Be a Landlord or a Note Holder? Let’s compare them side by side: When deciding whether to be a landlord or a note holder, it’s important to understand the differences, pros, and cons of each approach. Both can be profitable real estate investment strategies, but they come with very different responsibilities and risk profiles. Being a Landlord As a landlord, you own the physical property and rent it out to tenants. This strategy offers several benefits: * Tax Advantages: Rental properties provide powerful tax benefits like depreciation and deductible expenses that can shelter your income from taxes. * Inflation Hedge: Real estate typically appreciates over time, which helps protect your investment against inflation. * Forced Savings: Owning rental property forces you to put money into an asset, which grows in value over time. * Appreciation: Over the long term, your property value may increase, adding to your overall wealth. However, being a landlord also comes with challenges: