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Getting started in real estate can feel intimidating, especially when exploring strategies like investing in real estate notes. Many new investors hesitate because they worry about risk, money, or whether they understand the process well enough.
To better understand what helps people overcome that fear, we researched common investor roadblocks and revisited a powerful story from the DealMachine REI Podcast by investor Khang Lee.
His journey from extreme poverty to long-term success sheds light on what it truly takes to begin investing, stay consistent, and build confidence. Even though his focus initially was on flipping and wholesale real estate rather than real estate notes, the lessons from his path apply to any new investor taking their first step.
From Poverty to New Possibilities
Khang grew up in Vietnam in a mud hut. His family often went without enough food and sometimes ate frogs to get by. At nine years old, he moved to the United States with his family. That move changed everything. He saw the opportunities available here and believed he could build a future beyond what he had experienced.
But he also noticed something important. Many people born in the United States take those opportunities for granted. They never act on them. They wait for perfect timing, a perfect job, or a perfect plan. New investors often get stuck in the same pattern. They wait until they understand everything before making a move.
Investing in real estate notes or any other strategy does not require perfection. It requires a willingness to learn and the courage to begin.
Taking Risks Even Without a Clear Roadmap
At age seventeen, Khang dropped out of high school. His parents were disappointed, but he believed his future required a different direction. By eighteen, he and his wife were living in a small shed behind a mobile home. It was far from comfortable, but it gave them a place to start.
He entered real estate at twenty-seven. Like many beginners, he faced setbacks. His early attempts almost pushed him into bankruptcy. That kind of hardship causes many investors to quit before they ever find traction. But Khang decided to push through.
For people exploring investing in real estate notes, this part of his story is a reminder that everyone starts somewhere. You do not need a large savings account or a perfect track record. You need persistence and a willingness to figure things out along the way.
Why Mentorship Speeds Up Progress
Khang realized something critical: he needed guidance. Real estate is full of moving parts, whether you are flipping houses, buying rentals, wholesale real estate, or investing in real estate notes. Trying to learn everything on your own can lead to costly mistakes.
Once he found a mentor, things changed. He learned how to evaluate deals, structure offers, and spot opportunities. Within a short time, he closed his first profitable fix-and-flip deal and made $50,000.
This supports what many studies show about learning new skills. People build confidence faster when they have a knowledgeable guide. For note investors, mentorship can help with:
- Understanding performing vs. non-performing notes
- Evaluating borrower history
- Reviewing collateral documents
- Estimating risk
- Setting realistic expectations
You do not need to know everything before starting. But learning from someone experienced helps you avoid fear-driven decisions and gives you a proven path to follow.
Switching Strategies When Needed
After several years of flipping, the stress became overwhelming for Khang. Renovation delays, high holding costs, and unpredictable expenses took a toll on his finances and well-being.
He eventually moved into wholesaling, which requires less risk and does not involve buying or renovating properties. He built a strong business, hired virtual assistants, and adopted a model that gave him greater control over his time.
This is an important lesson for anyone investing or considering investing in real estate notes. The industry offers many strategies, and none of them require you to stay locked into one path. You can start with note investing, wholesaling, rentals, or a mix of the three. Over time, you will naturally find what fits your personality and goals.
Tools like DealMachine help investors stay organized, track leads, and understand property data even if their strategies shift. That flexibility matters when you are trying to stay consistent long-term.
Persistence and Discipline Create the Real Breakthroughs
Throughout his journey, Khang repeats the same message. Success requires sacrifice. It requires doing work that many people are not willing to do. It requires putting off comfort today in exchange for a stronger future later.
When you are investing in real estate notes, the same principles apply. You need to:
- Review note files carefully
- Study repayment history
- Understand the collateral
- Keep consistent records
- Build relationships with trustworthy sellers
These are not difficult steps, but they do require discipline. And discipline is what gives you confidence as you grow.
Why Mindset Determines Your Outcome
Khang believes that mindset is the real deciding factor between success and failure. Many people limit themselves before they even try. They imagine the worst outcomes. They underestimate their potential. They convince themselves that investing is too complex.
But people who stay focused on their goals make steady progress. Studies on behavior and performance show that people who stay optimistic and action-oriented are far more likely to achieve long-term success in any field.
When you are thinking about investing in real estate notes, a useful approach is to treat each step as practice:
- Practice reading note documents
- Practice analyzing the property value
- Practice estimating risk
- Practice communicating with note sellers
The more you practice, the more natural it becomes. Fear fades because repetition builds certainty.
A Life Built Around Purpose, Not Excess
Even after reaching a high level of financial success, Khang stayed grounded. He did not chase expensive purchases or a flashy lifestyle. He focused on creating content, educating others, and supporting his wife’s goals.
For many new investors, this is a helpful reminder. Real estate is not just about making money. It is about building flexibility, adopting an option-based approach to living, and creating a life you are proud of.
Investing in real estate notes is one way to build steady cash flow or discounted equity over time. But the most important part is staying clear on why you want to invest in the first place.
Building Strong Relationships in the Industry
A major turning point in Khang’s journey came from meeting other investors. Local meetups, mastermind groups, and networking events helped him learn faster. He found support, advice, and inspiration by surrounding himself with motivated people.
The same applies to real estate note investing. Connections matter. Many investors find their best note deals through relationships with:
- Small banks
- Credit unions
- Private note sellers
- Other investors
- Servicing companies
You do not have to do everything alone. When you build your network, your opportunities grow with it.
Final Thoughts
Fear is normal when starting something new. But fear should not decide your future. Whether you want to start wholesaling, flipping, or investing in real estate notes, the only way forward is through action.
Khang Lee’s story proves that you can start from any situation and still build a life filled with freedom and growth. If you stay committed, keep learning, build real relationships, and use tools like DealMachine to stay organized, you can move from uncertainty to confidence one step at a time.
FAQ
What does investing in real estate notes mean?
It means buying the debt secured by a property. The borrower pays you instead of the lender.
Is note investing good for beginners?
Yes, if you take the time to understand the documents and risks. Starting small helps you learn safely.
Do I need a lot of money to buy real estate notes?
Not always. Some notes can be purchased at lower price points, especially if they are non-performing.
How do I find real estate notes to invest in?
You can locate them through private sellers, small lenders, or industry contacts. Staying active in investor communities helps.