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Real Estate Deal Analysis & Advice
Account Closed
  • Flipper/Rehabber
  • York, UK
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Note Investing Success: My First Kicker

Account Closed
  • Flipper/Rehabber
  • York, UK
Posted Dec 7 2016, 11:16

When I first found Biggerpockets.com I worked my way through the podcasts.  Episode 28 with @Dave Van Horn really sparked my interest in note investing.  I took the PPR online education and started researching. A year later I had saved up enough cash to buy a small second mortgage on a house near where my family lives in California.  I knew the area, felt confident of the property values and was willing to take the risk and buy the note.  After three years of collecting my small monthly payment, I just got a payoff request - the homeowner is refinancing!

I paid $22k for the note, valued at $55k.

For 3 years, I've been receiving payments equal to 13% return on my cash invested.

My payoff will be $54k due to a balloon payment on the loan. Combined with interest received, that's a total of 185% return cash on cash or roughly 60%/yr.

Thanks for the inspiration Dave!! Time to go buy another! 

PS Since a lot of people ask, I bought my note through LinkedIn's Distressed Second Mortgage Group

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