Why to invest in Notes?

[Dion DePaoli]

I am not sure there is really a good thread here in BP which address this question.  I know there are many blogs but those do not provide expanded conversations around the idea, IMO.  

If you are a seasoned, new or potential loan investor regardless of performance, skill, knowledge or training chime in.  I know in advance, that this may be a tall request and many/some will not want to chime in, but I think it would do a good service to really start addressing the expectations that are flowing in the background and help put some light on realistic approaches and ideas to some of the core reasons folks consider jumping it, do jump in or stay away from investing in whole loans/notes.  

Some general questions:
What is attracting you to this asset class opposed to others?   

What are the expectations that you have, think you have or may have heard in regards to the amount or level of return one can expect?  

What is the amount of time a single investment will take or do you plan for?  Or your general investment horizon per asset.  Perhaps why that is your target as well.

What is the target amount of capital you believe you need or plan to work with or do work with?

How do you believe you will exit your asset investment specifically?  Perhaps a better way to say this is what is your most hopeful exist, highest best, as you know it.

How does that exit affect your return in your opinion?


I am not trying to sandbag anybody.  I really think this conversation needs to take place.  I hold this general conversation with many of the new investors I have talked with and some of those have been from here on BP.  

The fun and familiar motto is something to the effect of "Be the bank" - well, what does that really mean to you?  

The more open dialog, the better.