Invest in Debt by Jimmy Napier

Key Concepts

1. Investing in Debt vs. Equity

   • Napier argues that investing in debt can be safer and more profitable than equity investments.

   • Debt investments often have a fixed return and are secured by real property.

2. Discounted Mortgages

   • The book focuses on buying existing mortgages at a discount from their face value.

   • This strategy allows investors to earn higher yields than traditional investments.

3. Risk Management

   • Napier emphasizes the importance of thorough due diligence on both the property and the borrower.

   • He advises on how to structure investments to minimize risk.

4. Yield Calculations

   • The book provides detailed explanations on calculating yields for various debt instruments.

   • Understanding yield is crucial for comparing different investment opportunities.

5. Negotiation Techniques

   • Napier shares strategies for negotiating with note holders to acquire discounted mortgages.

   • He emphasizes the importance of creating win-win scenarios.

6. Exit Strategies

   • The book covers various ways to profit from debt investments, including holding to maturity, reselling notes, and foreclosure (as a last resort).

7. Ethical Considerations

   • Napier stresses the importance of ethical behavior in debt investing.

   • He advises against predatory practices and emphasizes creating value for all parties involved.

Practical Applications from Jimmy

• How to find and evaluate debt investment opportunities

• Techniques for analyzing the risk and potential return of a note

• Methods for structuring deals to protect the investor's interests

• Strategies for building a portfolio of debt investments