Investing in Norada Funding's notes

18 Replies

Has anyone in the BP community dealt with Norada funding? This is a sister company of Norada Real Estate. They're opening up some investment opportunities for 24 months. Rates are pretty high (12-15% with an additional 5% of the loan paid at maturity). The minimum investment is 50K. 

@Steve Morris Thanks for responding. I was thinking the same thing (diversification). I've also looked into Norris Group with their trust deeds. Their LTV is 70% max and they offer a 6 percent return for the investor (non pooled funds).

Originally posted by @Julian Buick :

@Steve Morris are you assuming the risk is high based on the reward? Or are you familiar with Norada’s offerings?

Making a gross characterization.  In general,the higher the rate of return, the greater the risk.  Look at T-bills vs hard money loans for extremes in rates and risk factors.

@Chris Yeung   @Julian Buick   @Steve Morris

Good morning gentleman.

Just to provide clarity in this post, there are three (3) separate companies:

1) Norada Real Estate Investments

2) Norada Real Estate Funding

3) Norada Capital Management

The Promissory Notes you're referring to belong to Norada Capital Management. These are not specifically real estate related. They are business notes backed by our portfolio of 10+ businesses which does include some real estate.

The note returns range based on investment but is double-digit. There are also bonus rates for larger investments. Interest payments are paid monthly, and Note lengths are currently 2- or 3-year terms.

Note that you must be an accredited investor as defined by the SEC.

Please let me know if you have any questions.

Continued success!

@Marco Santarelli 

Have you invested yourself in the Norada Capital Management notes? If so, what success or loss have you had with in since Covid19? Are there other notes you feel perform better than these?

 

@marco Santarelli
I looked up the Norada Funding and see you are the owner of this company so that last post I made is irrelevant. Sorry about that. I can go to your site and check it out.

@Chris Yeung . I invested in a fund with Norada and everything is legit. Interest payments hit my account as expected. Marco is great to work with and will answer all your questions. I had plenty questions when I was determining if I wanted to send him my money, and I was able to talk with him directly very easily. Also, check out his podcast...one of the few I have continued to listen to over the years and stays current with good content.

Good Morning - I have invested in the Promissory Notes as well.  Before doing so I spent hours on the phone with Marco discussing the loans, use of funds, risks, management teams...I also spent time researching Marco and Norada.  I have received wires for interest payments on my loans every month. I have a lot of respect for Marco as I find him to be extremely thoughtful, intelligent and a tremendous resource for Real Estate Investing and investing in general.  


@Andrew Smith  @Darin L. Really appreciate the feedback about your experiences with the promissory notes. We had just listened to a podcast with Marco from Norada as the guest (Passive Wealth Strategies for Busy Professionals: Demystifying Turnkey Real Estate Investing) and were reviewing the information about the notes on their site. Certainly there's risk that needs to be assessed but thanks for sharing!

@Marco Santarelli it's a real bummer that one has to be an accredited investor for all these opportunities I see.  Not everyone meets that criteria but there are lots of us investors that are experienced investors with 6 figures to invest who are close to 'accredited' status. :(

Hi @Deb S.  -- I completely agree with you!

Unfortunately it’s an SEC requirement to be accredited for an investment filed under Rule 506(c) — which this investment is. (So it’s their rule, not ours.)

If you know you’re close then maybe contact me directly and I can tell you what some other investors were able to do to be able to invest.

Continued Success!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you