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okay if youre watching this video youre a specialist youre in that niche uhh that unique of selling notes you might be investing in notes and collecting points and interest then you might be brokering those notes and selling those notes off to others maybe they default and end up as a rental property but Wow lots of strategies here right well I want to just share a few important tax strategies and five tips of when you know you may have a self-employment tax problem you got to hear this all right now first concept in general holding a note is passive right youre gonna get points and interest you might hold the note in your revocable living trust you might even have an LLC or holding company to hold those notes for the long haul and a little asset protection type strategy but from a tax point of view it is passive also if you have to foreclose on that note and you take ownership of a property which sometimes is a great thing and then you can flip the property or keep it as a rental