Experienced RE note investors

[Matthew Murray]

Anyone experienced in real estate notes? I have a potential note that the sponsor is asking me to be a part of. I’m doing my due diligence to see if there are any red flags. TIA

[Marco Bario]

Quote from @Matthew Murray:

This would be my first note. The sponsor is mentioning he will create an LLC to purchase the note. We would have to deposit funds into the LLC's bank account to execute that. Is that odd? Conversely, It makes sense to me that this would need to be done I'm just new to this and don't know what to expect. Also any shady things I should look out for when doing my due diligence? Thanks.

@Matthew Murray - It sounds like you may want to pump the brakes on this deal until the investment is more clear for you. 

How well do you know the person you'd be investing with, what type of note are you purchasing, and who's doing what with the asset?