Hello,

I have recently started real estate investing with money saved up that I wanted to put to work. I currently have notes as follows:

- Promissory Note: $25k invested, with interest payable on the unpaid principal at the rate of 12% per annum, calculated monthly not in advance, to be paid in full within 12 months (plan is to reinvest with this borrower)

- Demand Note: $50k invested, with interest at the rate of 10% ($5,000); possibility to reinvest when more investment opportunities arise with this borrower (made sure to establish a connection with this one and we ensured a win-win all around)

My goal is to establish trust and create relationships with these borrowers and continue to reinvest these funds when goals are met. I would like to meet more of these types of people as I have found an interest in note investing. I have $25k more I want to invest and want some advice. Do I lend the rest to the promissory note borrower (apparently I can put more in, but not sure how this affects the note)? Or is there another avenue I should explore? Is there somewhere I can get "more bang for my buck"? I have been researching for more of these kinds of investments and stumble into mortgage investing too, but am not familiar with this. I could go the "invest in yourself" route, but do not really know what to invest in. I really appreciate the feedback for this post and look forward to taking more action!

Nice to meet you Arron. Being that the types of note investing you're in has worked and if they pay back the funds and do so in full I'd say continue the relationship. You have something that is working and those are great rates to lend. 

Mortgage note investing is a bit different as it is not based on the same metrics as Private lending. You're not evaluating the ARV and other metrics that you would with Private Lending.

As for Invest in Yourself, now is a great time for that and there are a lot of great education pieces out there to learn more about note investing. 

There is a great book by @Joshua Andrews called Paper Profits that has a lot of case studies breaking things down well. 

There is also a free course by Kevin Shortle that will break down the steps in 1st position note investing really easily. 

Best of luck with it and if you have any more questions please let me know. 

Originally posted by @Brett Burky :

Nice to meet you Arron. Being that the types of note investing you're in has worked and if they pay back the funds and do so in full I'd say continue the relationship. You have something that is working and those are great rates to lend. 

Mortgage note investing is a bit different as it is not based on the same metrics as Private lending. You're not evaluating the ARV and other metrics that you would with Private Lending.

As for Invest in Yourself, now is a great time for that and there are a lot of great education pieces out there to learn more about note investing. 

There is a great book by @Joshua Andrews called Paper Profits that has a lot of case studies breaking things down well. 

There is also a free course by Kevin Shortle that will break down the steps in 1st position note investing really easily. 

Best of luck with it and if you have any more questions please let me know. 

 Thank you for your reply! I will continue to build on these relationships to obtain more cash flow opportunities.

I now better understand the difference between the two with your explanation. I feel better with private lending rather than mortgage investing and will continue to set my sights on that direction. If you have any avenues you would like to share, I am all ears.

I will definitely continue to keep learning about note investing as it is something I have found to make sense to me. I will be looking into reading the book you have recommended as I am always looking to expand my reading collection. Thank you for being a source of knowledge I can seek information from for my real estate investing journey!