Note investing Space!

11 Replies

Anyone in this space, i would love to learn what you know or atleast love to speak on this space with you as I know it’s best to speak with someone actively doing it. Perhaps we can schedule a call or even share some valuable advice here in the post! If I want invest in non-performing properties vs performing what to look for and what to expect? The more money down the better? And what numbers could do that look like? 10,000-15,000?

@Julian Joseph I’d suggest you pick a strategy and stick to it. It seems you have shiny object syndrome and just go from one idea to the next. If you do this you’ll likely accomplish nothing.

As far as notes go, I don’t have any direct experience but there are several books on this on BP for like 10-20 dollars.

Notes are good and I will do them myself later but you need capital. Usually your own capital meaning you can’t borrow it. A good estimate is probably 50-200k.

I personally would probably prefer to invest in a note fund instead if individual notes but you have to be accredited for that.

@Caleb Heimsoth Yeah I’m currently sticking to Wholesaling for now and if I find deals for a househack I may do that as well. But for now sticking heavy towards wholesaling but I heard a BP podcast on notes and thought they seem to be low risk for cash flow. But then I noticed you need much money down to invest so if that’s the case that’s all I need to know. Now like wholesaling I guess I could find a deal and refer to a note buyer, just like selling a property to an investor. So no harm in that as well.

@Julian Joseph you need cash to buy notes like I said earlier.  Buying notes are usually done on exchanges   .  Not sure you can assign a contract for notes like you can a house.

Be careful about wholesaling in Florida, it may be illegal without a RE license 

@Caleb Heimsoth thanks man, going to look into that. I’m still lightly researching other avenues while I educate myself on wholesale. But if that’s surely the case on the legality of it then I’m pursuing a different strategy

@Caleb Heimsoth so after some research it is not illegal to wholesale in Florida. And Speaking to attorneys they can provide the assigning of contracts here

@Julian Joseph that was fast lol.  You should consult an attorney.  Lots of people on BP say it’s illegal

@Caleb Heimsoth Yeah that’s what I’m saying I’ve consulted with several that work with Assigning Contracts lol. Yesterday and today I’ve spoken with some. Not sure why others are saying that, perhaps it’s the way or how their contracts were written? Not sure man but I clearly stated to the attorneys that I’d do an “A to B to C” transaction and they would say ok yes theyre familiar.

Note investors typically do not buy off exchanges and buy from banks and hedge funds. The higher up the food chain the better. You will need a min of $25k to start in notes if it is non-performing. If it’s performing you can buy partials or low balance loans for under $10k but harder to find.

Notes does have a learning curve and you just don’t start buying notes (you can buy it won’t be pretty). There are many posts on BP regarding notes and who to research and learn from

You don't necessarily need a lot of money to invest in notes. I bought a performing note for just over $4K when I was getting started. You could also try to arrange a "swap" of some sort with an experienced investor wherein you learn investing and provide some other service. If you do invest in notes however I would recommend having at least some financial reserves in case things go badly. You may also consider working a "regular" job while learning and saving. I would also suggest volunteering with your local REIA to expand your network and meet other investors. Good luck!

I'm by no means an expert but I recently brought a performing note. It's a 5 year deal with interest only payments. Having 1st lien on the title and the borrower having a low LTV ratio were the two things I looked for. Of course I verified as best I could that the property value is more than the note:). You need capital and it will be tied down for a while. DM me if you want more info on the company that provided it etc.

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