Investing in Real Estate Notes is the most attractive direction in debt buying. Because such debt is secured by real estate and this type of activity is least regulated, the types of buyers range from a private investor with a budget of $50,000 per year to an investment fund with a capital of several trillion dollars. Despite such a wide variety, there are usually two types of debt: commercial and residential, divided into performing and non-performing. And as a rule, each buyer specializes in one of these types. It can be said that non-performing residential is in the most significant demand among buyers and is being considered for purchase by private investors and family offices, funds, and other investors.
Non-performing Commercial is most often considered for purchase by specialized funds or groups that work with this type of asset on a daily basis (for example, hoteliers).
Performing Residential or Commercial is most often considered for the purchase of an investor with a low cost of capital, such as hedge funds, investment companies, and pension funds.
