Updated almost 5 years ago on . Most recent reply
Financing note purchases and scaling
As we shift our business towards note investing, I am challenged by the fact that note investing requires more capital than other forms of RE Investing.
So far my thoughts are to purchase non-performing notes, get them re-performing and sell them to gain more capital, flip them essentially. We could also use our credit lines to purchase performing notes and NPNs.
I am in the midst of educating myself on strategies and building the team. I just purchased Jimmy Napier's Invest in Debt, and I'm finishing Martin Saenz's book currently. The book Lienlord was also helpful.
What are some ways note investors fund notes to scale quickly for cash flow?
Most Popular Reply
@Tyson Eimers @Russell Beck in the 10 years doing this, this is in the top 5 most popular questions.
Turn npn to performing is always the goal as the returns are the highest. Unfortunately you cannot control what borrowers can/can't do.
Aa far as raising capital, most turn to JVing which can be dangerous due to SEC. Best methods is creating a fund, do a loan or LLC with capital partner.