What if you could generate income backed by real estate without owning the property, managing tenants, or dealing with repairs?
In this episode of Executive Connect, Melissa Aarskaug sits down with Fred Moskowitz, fund manager, educator, and bestselling author, to break down the world of mortgage note investing and what it means to step into the position of the bank.
Fred explains how investors can purchase existing mortgage debt, receive recurring payments, and build exposure to real estate without taking on the day-to-day responsibilities of property ownership. He also compares active and passive note investing, explains how investors should evaluate risk, and shares why alignment with fund managers, borrowers, and underlying assets matters.
The conversation also covers self-directed retirement accounts, Roth IRAs, HSAs, compliance rules, interest-rate shifts, borrower behavior, liquidity trends, and the role of compound growth in long-term wealth building.
For investors looking for alternative ways to create income and diversify beyond traditional stocks and rental properties, Fred offers a practical look at an asset class built around cash flow, collateral, and disciplined risk management.
What You Will Learn
- What mortgage note investing is and how it differs from owning real estate
- How investors can generate cash flow by stepping into the role of the lender
- The difference between active and passive note investing
- Why time availability should influence how you invest
- How to evaluate risk across the property, borrower, and investment sponsor
- Why due diligence matters before committing to a note fund
- How self-directed retirement accounts can be used for note investing
- Why Roth IRAs and HSAs can offer powerful tax advantages
- How changing interest rates affect existing mortgage notes
- Why note investing can scale without requiring investors to manage physical properties
Chapters
(0:21) Why note investing flips real estate ownership
(1:12) What mortgage note investing actually means
(4:40) Why income-focused investors consider notes
(7:31) Active versus passive note investing
(11:08) How much control passive investors give up
(13:06) Managing risk and performing due diligence
(18:40) Using retirement accounts for note investing
(25:56) Tax advantages of Roth IRAs and HSAs
(28:34) Compliance rules and prohibited transactions
(31:00) Market trends, interest rates, and borrower behavior
Fred Moskowitz is a fund manager, educator, bestselling author, and real estate investor who specializes in mortgage note investing. His work focuses on helping investors understand how to generate income through debt secured by real estate rather than owning and managing the underlying property. He teaches both active and passive approaches to the asset class, with an emphasis on cash flow, scalability, due diligence, and risk management.
Fred is also the author of The Little Green Book of Note Investing, which provides an introduction to the note investing industry, including how to get started, evaluate risk, build a portfolio, choose between active and passive investing, and use retirement-account capital. His approach emphasizes tangible assets, disciplined investing, and choosing strategies that fit an investor’s lifestyle, goals, and available time.
CONNECT with Fred Moskowitz
Website: https://www.fredmoskowitz.com/
LinkedIn: https://www.linkedin.com/in/thefredmoskowitz/
CONNECT with Executive Connect
Website: https://www.executiveconnectexperience.com/
LinkedIn: https://www.linkedin.com/company/my-executive-connect/
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