Feedback on Paper Assets Capital for Trust Deed

6 Replies

Hi All ,

I am doing some research on Trust Deed ( Performing Notes only ) and have found few providers through the reference from BP and also doing an organic search on the Internet.

Have anyone used company Paper Assets Capital (PAC) to buy Trust Deed ( Performing Notes only)?

If yes, could you share your input on

1: How long you have been with them?

2: Are you getting the promised return?

3: How easy/Tough was your overall interaction with them?

4: How reluctant were they to find a good solution in case you ran into an issue ( foreclosure, delay in payment, insurance issue )with borrower after buying the property?

Feel free to share any other provider details that you have worked with to get Trust Deed.

-Vishwa

@Vishwa Mishra I have not bought from PAC but know of the owners and they are reputable in the note space. Now as it pertains to a performing Note:

1. Returns are never promised. There are projected returns but no one guarantees a return. If they do then they will be in handcuffs in the very near future.

2. Are you looking for them to manage the note for you? The interaction when acquiring a note is actually very limited once you get the collateral files. But the guys at PAC are typically very responsive in their work from what I see.

If you buy a performing note from them (or most note investors) you are buying it as-is and if the borrower stops performing, you're on your own.

If you invest in a 506(c) that is different in that it provides a preferred return and you can ask for the history of the fund. But if your buying a one off note from them or from another investor, its like buying a house, if after you buy the house the refrigerator breaks, your not going back to the seller, its on you. The same goes with a note, if they stop paying, you need to get it resolved. 

@Chris Seveney

1: When you say the return is never promised are you saying how long would I get ( because that depends on how long the borrower keep his side of the bargain ) or you mean even that could change even if I hypothetically believe that borrower is going to make the payment throughout the term?

2: Yes I am expecting them to manage the note since I expect it to be a Passive investment. 

If I have to take care of borrower paying on time keeping his insurance current etc, i would rather buy property then notes.

I see the point you are making and that's the reason I want to check and make sure how the company is overall and someone experience with them.

-Vishwa

Originally posted by @Chris Seveney :

@Vishwa Mishra I have not bought from PAC but know of the owners and they are reputable in the note space. Now as it pertains to a performing Note:

1. Returns are never promised. There are projected returns but no one guarantees a return. If they do then they will be in handcuffs in the very near future.

2. Are you looking for them to manage the note for you? The interaction when acquiring a note is actually very limited once you get the collateral files. But the guys at PAC are typically very responsive in their work from what I see.

If you buy a performing note from them (or most note investors) you are buying it as-is and if the borrower stops performing, you're on your own.

If you invest in a 506(c) that is different in that it provides a preferred return and you can ask for the history of the fund. But if your buying a one off note from them or from another investor, its like buying a house, if after you buy the house the refrigerator breaks, your not going back to the seller, its on you. The same goes with a note, if they stop paying, you need to get it resolved. 

Chris are these reperforming notes ?? or notes that have been solid or new originations with vetted borrowers. 

@Vishwa Mishra

To answer your questions I need some more info:

1. Are you investing in their fund or buying a note from the site ?

2. If it is a note and not the fund, is it performing or non-performing

If it is the fund then you need to read the operating agreement and any private placement memorandum etc about the risks etc

Have you asked them for referrals ?

@Chris Seveney

1: I am buying a note from them.

2: Performing note only 

No referrals yet, I am new to this so still doing my homework to make sure I understand what I am getting into.

I do understand there would be some risk so I want to make sure I know what they are and how to get out of it in one piece.

-Vishwa

@Vishwa Mishra  

If you are buying a performing note, you then take responsibility and have a 3rd party service the note. There are companies out there for a fee that will manage the servicer of the note for you so it is 100% passive. Send me a PM if you want the names of some.

When you buy the note, there are no guarantees from the seller. If they stopped paying the day after you acquire the note then you will need to do the workouts etc.