You still collect the monthly interest payments based on the original loan terms.
It’s one of the few ways to find "mispriced" assets in a crowded market. Just make sure you’re comfortable with the credit risk! buying loans at a discount
Did you know you can buy someone else's loan for less than they owe? It’s called buying at a discount. Immediate cash. You still collect the monthly interest payments based
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Interest rates have risen, making older, lower-rate loans less attractive at "par" value. buying loans at a discount
Most people think of lending as a "primary" activity—you give money, they pay you back. But the real meat is often in the . Buying loans at a discount allows for two types of gains: