Why Notes Are Great To Have
4 Replies
Devante A Johnson
Lender from Washington, DC
posted over 3 years ago
Paul Aqua
Property Manager from Sacramento, California
replied over 3 years ago
Could you please describe how notes are a better investment than multifamily or fix and flips? I am curious on learning more information.
Chris Seveney
Investor from Northern Virginia
replied over 3 years ago
@Paul Aqua
Assuming you buy at the right price:
1. Your the bank, the higher up the food chain you are the better position you are always in
2. Your in an equity position where you typically have 50% equity in the investment. So if the asset decreases in value your still in a good position
3. You have multiple exit strategies.
4. If it is performing it is mailbox money as you collect payments
5. Your not responsible for maintenance or capex or unexpected costs on a property
6. You manage consultants who are typically professionals and large companies (not some small contractor who never shows up)
This is just a few points - there are always positives and risks with any investments
Paul Aqua
Property Manager from Sacramento, California
replied over 3 years ago
@Chris Seveney Thank you for pointing those facts out for me, At this time I do not think this something I am comfortable investing in but who knows?
Chris Seveney
Investor from Northern Virginia
replied over 3 years ago
Definitely not something to buy without having training and understanding the due diligence process