Great question @Nathan Trenery - I would recommend you verify with your CPA (since I am not a tax strategy expert by any means) but from what I understand, there are some advantages and disadvantages: ✅ Advantages 1. No payroll tax / self-employment tax - Interest income from notes is not subject to FICA or self-employment taxes.You keep more of what you earn. 2. Capital gains on discounted notes - If you buy a note at a discount and later resell it or the borrower pays off, the spread is generally treated as a capital gain (often taxed lower than ordinary income). 3. Tax-deferred or tax-free growth in retirement accounts - Notes can be held inside Roth IRAs, Traditional IRAs, Solo 401(k)s, etc.Inside these accounts, interest and payoffs grow tax-deferred or tax-free. ⚠️ Disadvantages 1. Ordinary income on monthly payments - Borrower payments (interest + some principal) are typically taxed as ordinary income, not capital gains—especially on performing or re-performing notes. 2. OID (Original Issue Discount) rules - When you buy a note at a discount, the IRS may treat part of the gain as accrued interest, which is taxed as ordinary income—even before you receive cash in some cases. 3. No depreciation - Unlike owning rentals, note investors can’t use depreciation to reduce taxable income.

Sure thing, yes - I converted my LLC to an S-corp last year and I have all my employees and myself on payroll now. In addition to making estimated tax payments we also use net-zero bonus checks through payroll to avoid underpayment penalties while also funding social security. And I'm using regular real estate investments for depreciation and other advantages. For example - over the last 3 years I've purchased 3 of my neighbor's houses to establish a FIXnotes campus where we will eventually have in-person events & host our clients. Finally, I buy cash-flowing notes in my SDIRA (actually reminds me that I have cash to deploy in there ASAP!) Thanks for the question @Nathan Trenery

great to have you @Maya Rivers - sounds like you have a lot to offer the group! looking forward to working together!!

Yep, chose alto sax for 4th grade band @Kareem Aaron - that was the tenor in the vid on Linkedin. Yes bass isn't as flashy, but very important for the band!

Thanks @Iván Terrero - it was good enough that I got invited out to play another gig this weekend (indoors this time)!

Hi @Cg Amos - great question! I started my "mini-agency" in 2017 after learning the business for 6 years on the inside. One aspect of the business at a time, I expanded what I could offer my clients. Here’s what those services actually look like in the real world: Acquisitions Support - Tracking down tapes, verifying data, cleaning up inconsistencies - Running quick-turn due diligence: taxes, title, occupancy, valuation - Preparing offers and coordinating with sellers - Managing closing logistics (collateral shipping, assignments, bailee letters, onboarding) Servicing Oversight / Portfolio Monitoring - Setting up and supervising servicing transfers (loan boarding, escrow setup, taxes/insurance verification) - Making sure the servicer is actually working the loan: timelines, notices, loss-mit steps - Monitoring payment performance and flagging delinquencies early - Coordinating property preservation, insurance renewals, and tax advances - Communicating with attorneys/servicers on collections, mod reviews, BK filings, and foreclosure steps - Keeping investors updated with monthly reporting so they stay out of the weeds Why Investors Pay for This Most note investors want the returns, not the operational complexity. A reliable portfolio manager saves them time, reduces mistakes, and keeps their deals moving. It’s extremely high-leverage support. How to Get Started Yourself 1. Audit your strengths. 2. Pick one value-add service. 3. Execute flawlessly. 4. Expand your offering over time. In my opinion, this path is one of the fastest ways to embed yourself in the industry, get paid to learn, and build the exact skills that make great note investors. If you approach it professionally, you can build a six-figure “mini-agency” before ever buying a note yourself. And you'll have the confidence & skills to be successful on your first deal for your own portfolio without as much trial & error.