Eddie Speed has purchased over 50,000 mortgage notes in a 45-year career, and he believes today's market is uniquely primed for seller-financed note investing. In this episode, Eddie breaks down how landlords can convert rental portfolios into performing notes, dramatically boosting cash flow while shedding maintenance headaches. He explains his mortgage-bank-style underwriting system, how he creates liquidity for note sellers, and why 40% of qualified buyers are locked out of conventional lending. Whether you are an accredited investor exploring a new asset class or a burned-out landlord hunting for better NOI, this conversation reframes what truly passive income can look like in 2025.

Time Stamps

[00:00:00] - Introduction

[00:01:07] - How Eddie Got His Start Buying Notes in 1980

[00:03:30] - Why Rental Expenses Are Crushing Landlord Cash Flow

[00:05:45] - Notes as the Middle Ground Between Syndications and Rentals

[00:08:15] - What Is a Note? A Simple Explanation for Beginners

[00:10:00] - How Seller Financing Differs from Subject-To and Wraps

[00:13:30] - Eddie's Mortgage Bank Approach to Underwriting Notes

[00:17:00] - The Math: Rent vs. Note Income on the Same Property

[00:20:30] - Who Qualifies as a Seller-Finance Buyer Today

[00:24:00] - How Mortgage Banking's Tightening Index Creates Opportunity

[00:27:30] - Return Profiles and What a Grade-A Note Looks Like

[00:30:00] - How Eddie Scales: Secondary Markets, Hedge Funds, and Investors

[00:33:45] - The Rental Conversion Program for Landlords with 25-500 Units

[00:37:00] - Why Land Contracts Destroy Note Value

[00:39:30] - What Sophisticated Investors Still Underestimate About Notes

[00:42:00] - Book Recommendation and Final Advice

References and Sources

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Book: "Never Split the Difference" by Chris Voss

Resource: Note School

Resource: Note School Rental Conversion Program

Company: HomeVestors (founded by Ken D'Angelo)

Mastermind Groups Mentioned: Collective Genius, Boardroom, Investor Fuel

Index Referenced: Mortgage Bankers Association Credit Availability Index

Why Being the Bank Beats Owning Rentals Right Now