Want a way to generate monthly cash flow that’s MORE PROFITABLE and LOWER STRESS even than a well-managed rental property?  How’s 12% per year - or more - sound?  I’m Bryan Ellis, and I’ll tell you how to do it RIGHT NOW in Episode 153.----Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!People, people, people… I’ve been getting a lot of notes lately saying something like… “Bryan… you used to talk a lot about real estate notes as the best asset class, and now all I hear you talking about is rental properties.  Aren’t notes still a good option?”My friends, not only are high-quality real estate notes a good option, but they remain a MUCH BETTER FOUNDATION for your portfolio than anything else… including rental properties!For those of you who may be new listeners, a note – also called a mortgage – is just a loan for which real estate is placed as collateral.  So let’s say you have $100,000.  You might choose to lend that to someone in exchange for a certain interest rate.  But in order to make it safe for you to lend, you require that the borrower place a piece of real estate as collateral that you can sell if the borrower fails to make his payments as agreed.  That’s a simple explanation of notes – they’re really just real estate loans.  No more than that.And usually, when a person wants to invest in notes, what they’re looking to do is to find a note that’s been originated by a lender, and then the investor – that’s somebody like you – would look to buy that note from that lender in order to generate a good yield on their capital.And do you know what?  That kind of deal DOES happen every day… but, generally speaking, not with individual investors.  Sure, there are individuals who have the connections to pull off good note deals, but that’s pretty rare.But that doesn’t matter, my friends, because there’s a MUCH BETTER WAY.  And that way is to create your very own notes – with exactly the terms you want – from scratch!Now my friends, I’ll quickly explain the process to you.  There are a few of you in the audience who are do-it-yourselfers and will take what I give you and run with it… and that’s great!  But for the vast majority of my audience who are true passive investors, you should listen in for a moment as well so you understand the process… and then I’ll tell you how to have it all DONE FOR YOU – totally passively – in just a minute.So here’s how it works:The basic idea is that you’ll buy a house, and then you’ll TRANSFORM that house into a paying real estate note.  How?  You’ll sell the house using a strategy called Seller Financing, in which the buyer – rather than going to the bank to get a loan – the buyer will give YOU a down payment, and then they’ll also make payments to you for years to come, just as if you were the bank.  When you do this, you’ve BECOME THE BANK and you’ve transformed your house into a cash-flowing note!But what kind of house does this work best with?  Well, there are 3 simple financial standards you should look for.  Curiously, the standards are all related to RENTAL RATES.  Why?  What you’ll find is that by targeting RENTERS who want to be buyers with a special message – that message being “you can now OWN a property for what you’re paying in RENT – then you’ll find it quite simple to convert houses into NOTES… and that’s the whole goal.  Thus, all of the standards involve the prevailing market rental rate for the property in question.  We’re going to use the rental rate to BACK IN to what we charge the buyer when they buy the property from us via seller financing.So standard #1 is Rent To Value, or RTV – just divide the value of the property by the monthly rent.  What you’re looking for is a number at or below 100.Standard #2 is Rent To Price, or RTP – just divide the actual PRICE you’re paying by the monthly rent.  What you’re looking for is a number that’s no higher than 80, and the lower the better.Standard #3 is Rent to Recurring Costs, or RTR –