{"id":4641,"date":"2025-06-24T23:55:50","date_gmt":"2025-06-24T23:55:50","guid":{"rendered":"https:\/\/myrealestatedojo.com\/subto\/?p=4641"},"modified":"2025-06-24T23:56:45","modified_gmt":"2025-06-24T23:56:45","slug":"landlord-vs-note-holder-2","status":"publish","type":"post","link":"https:\/\/myrealestatedojo.com\/subto\/landlord-vs-note-holder-2\/","title":{"rendered":"LANDLORD vs. NOTE HOLDER \u2014 Which One Builds More Wealth in 2025"},"content":{"rendered":"\n\n\n

LANDLORD vs. NOTE HOLDER \u2014 Which One Builds More Wealth in 2025<\/yt-formatted-string><\/h1>\n\n

What\u2019s better in 2025 \u2014 being a landlord or becoming the bank and holding the note?\n\nIf you\u2019re tired of dealing with broken toilets, tenants ghosting you, and 3AM emergency calls \u2014 this video will open your mind to something WAY smarter.\n\nIf you’re just getting into real estate or you’re already stacking rental properties\u2026 this lesson might change your game.\n\nChamp, I\u2019ve been an entrepreneur since 9th grade in high school and a real estate investor since 2006. And all that time, I\u2019ve never borrowed money from a sticky banker or held a r\u00e9sum\u00e9 job.\nToday\u2019s session\u2014today\u2019s lesson\u2014is all about LANDLORD vs. NOTE HOLDER. Let\u2019s break it down.\n\n\ud83d\udce6 Part 1: Why I Love Being a Landlord (But Also Why I Don’t)\nLet\u2019s start with what most people know: Being a Landlord.\nI do love owning rentals \u2014 here\u2019s why:\n* \u2705 Forced savings: It\u2019s hard to just sell a house like a stock. So, it forces you to build wealth over time.\n* \u2705 Tax benefits: You get depreciation, 1031 exchanges, mortgage interest deductions.\n* \u2705 Inflation hedge: When inflation hits, rents usually go up, and your fixed-rate mortgage stays the same.\n* \u2705 Cash flow: If done right, your rental pays you every month.\n* \u2705 Long-term wealth: Over 10\u201315 years, rents rise, debt shrinks \u2014 you win both ways.\nBut let me be 100 with you\u2026\nHere\u2019s what sucks:\n* \u274c Tenants don\u2019t always pay.\n* \u274c Toilets, termites, and tantrums.\n* \u274c A\/C units die in July.\n* \u274c Evictions cost time and money.\n* \u274c You still carry all the liability.\nAnd if you own in places like Texas, you\u2019ll find out real quick that judges often side with the tenant over the landlord. That\u2019s just the truth.\n\n\ud83c\udfe6 Part 2: Why I Prefer Being a NOTE HOLDER (aka Becoming the Bank)\nNow let\u2019s flip the script.\nWhat if instead of being a landlord\u2026 you become the bank?\nThis is what we call being a note holder.\nAnd this is where things get powerful.\nSo what\u2019s a note?\nA note is a legal promise to pay \u2014 just like when someone signs a mortgage for a house or a loan for a car.\nWhen you\u2019re a note holder, you\u2019re the one collecting the payments.\nJust like Bank of America, but without their buildings, employees, or lawsuits.\n\n\ud83e\udde0 The Benefits of Being the Bank:\n1. \ud83d\udd27 No Repairs, No Headaches\nIf the roof leaks or the toilet breaks \u2014 NOT YOUR PROBLEM.\nThat\u2019s the buyer\u2019s issue. They own the house. You\u2019re just collecting the check.\n2. \ud83d\udcb0 Big Down Payments Upfront\nWhen you sell with owner financing, you can collect 10%, 20%, even 30% down from your buyer.\nThat\u2019s money in your pocket on day one.\n3. \ud83d\udcb5 Monthly Cash Flow (The Interest Spread)\nLet\u2019s say you buy a home Subject-To an existing mortgage at 3% interest.\nYou turn around and wrap that loan to a retail buyer at 7%.\nYou\u2019re pocketing that 4% spread every single month \u2014 without landlording.\n4. \ud83c\udf89 Big Back-End Profit\nLet\u2019s say you sell the house for $200k and collect $30k down.\nNow you\u2019re holding a note for $170k. You\u2019re getting monthly payments and, one day, that buyer might refinance or sell and cash you out.\nYou get your remaining balance \u2014 that\u2019s the back-end payday.\n\n\ud83d\udca1 Why This Strategy Works in 2025\nInterest rates are higher, and most retail buyers can\u2019t qualify through banks. But they can buy from you with owner financing.\nYou’re helping them win\u2026 and you’re winning even bigger.\nAnd remember: you don\u2019t even need your own money if you do this with Subject-To or Seller Financing deals.\nYou can literally step into someone else\u2019s mortgage, wrap it, and create instant cash flow with zero banks involved.\n\n\nSo Should You Be a Landlord or a Note Holder?\nLet\u2019s compare them side by side:\nWhen deciding whether to be a landlord or a note holder, it\u2019s 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.\nBeing a Landlord\nAs a landlord, you own the physical property and rent it out to tenants. This strategy offers several benefits:\n* Tax Advantages: Rental properties provide powerful tax benefits like depreciation and deductible expenses that can shelter your income from taxes.\n* Inflation Hedge: Real estate typically appreciates over time, which helps protect your investment against inflation.\n* Forced Savings: Owning rental property forces you to put money into an asset, which grows in value over time.\n* Appreciation: Over the long term, your property value may increase, adding to your overall wealth.\nHowever, being a landlord also comes with challenges:<\/span>
<\/p>\n\n\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","_wp_convertkit_post_meta":{"form":"-1","landing_page":"0","tag":"0","restrict_content":"0"},"footnotes":""},"categories":[32,18],"tags":[],"class_list":["post-4641","post","type-post","status-publish","format-standard","hentry","category-landlording","category-owner-finance"],"_links":{"self":[{"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/posts\/4641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/comments?post=4641"}],"version-history":[{"count":3,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/posts\/4641\/revisions"}],"predecessor-version":[{"id":4644,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/posts\/4641\/revisions\/4644"}],"wp:attachment":[{"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/media?parent=4641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/categories?post=4641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myrealestatedojo.com\/subto\/wp-json\/wp\/v2\/tags?post=4641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}