Norada Capital Management notes

Tax Liens & Mortgage Notes
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Norada Capital Management notes

Craig Salzer
Milwaukee, WI · Member since 2020 · 38 posts · 13 votes

There were some old threads, so I'm starting a new one.  Any have any experience investing in the Norada notes?

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y

@David M.

If it’s unsecured debt it’s just like a credit card. Significant risk involved in any unsecured debt.

Personally I would not touch lending $ out to unsecured debt. Way too much risk involved.

Much rather make 8-10% secured than 12-15% unsecured

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Craig Salzer

    I do not. I have seen they are offering something like 16% returns. That is typically 2x most note funds. I believe the sponsor is here on BP as well.

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  • Ryan Taylor
    Member since 2022 · 88 posts · 38 votes
    4y
    Quote from @Chris Seveney:

    @Craig Salzer

    I do not. I have seen they are offering something like 16% returns. That is typically 2x most note funds. I believe the sponsor is here on BP as well.


     Craig,

    I took a quick stroll on 7e Note Investment site. I like it! Question, are the offerings on said site for accredited investors only? I have a couple of short term first trust deeds ready to mature and need to re-deploy this capital. I am NOT accredited (a stipulation I think is BS BTW). I do love the passive (mailbox money) side of this type of investing. Do you feel, given the current state of the market, the risk is increasing in this type of investing? The notes I have, have performed very well, and would love to stay on that train. Any thoughts/guidance would be greatly appreciated.

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  • Craig Salzer
    OP
    Milwaukee, WI · Member since 2020 · 38 posts · 13 votes
    4y

    Ryan,

    I don't have any experience with notes.  I've been interested in this type of investment and I'm guessing this is sort of different, since it's not secured by real estate which seems like the more traditional way to do it.  This would be my first note investment.  I did work with Norada on the purchase of some real estate and the experience was good.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Ryan Taylor

    Check the 7E site come Wednesday it will be updated and there will be an Option there for non accredited.

    With any syndication, ask for referrals from prior investors that you can talk to.

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    4y
    Quote from @Ryan Taylor:
    Quote from @Chris Seveney:

    @Craig Salzer

    I do not. I have seen they are offering something like 16% returns. That is typically 2x most note funds. I believe the sponsor is here on BP as well.


     Craig,

    I took a quick stroll on 7e Note Investment site. I like it! Question, are the offerings on said site for accredited investors only? I have a couple of short term first trust deeds ready to mature and need to re-deploy this capital. I am NOT accredited (a stipulation I think is BS BTW). I do love the passive (mailbox money) side of this type of investing. Do you feel, given the current state of the market, the risk is increasing in this type of investing? The notes I have, have performed very well, and would love to stay on that train. Any thoughts/guidance would be greatly appreciated.

    Hi Ryan. I’m curious, why to you think requiring accredited status is BS?  Do you think it’s BS from the government requirement side, or do you think it’s BS that an issuer has decided to conform with Reg 504D for private offerings?
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  • Travis Hibbard
    Rental Property Investor · Rosemount, MN · Member since 2018 · 8 posts · 8 votes
    4y

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4y
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


    what is the security for said notes ?? just curious.. 
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Jay Hinrichs

    I was curious too- from my understanding (and sponsor is on BP so he can confirm) I believe the investor is the lender and norado is the borrower and depending into the amount d term they will provide a specific interest rate.

    One of the posters in group may be able to advise if it’s backed by a specific asset or what is the security instrument ?

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  • Ian M.
    Pittsburgh, PA · Member since 2012 · 140 posts · 38 votes
    4y

    It's not backed by any asset. Its solely a promissory note. I called to find that out myself a few weeks ago and that was the answer I got.

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y
    Quote from @Ian M.:

    It's not backed by any asset. Its solely a promissory note. I called to find that out myself a few weeks ago and that was the answer I got.


    so its an unsecured loan. do you know if its atleast a loan against the LLC that owns something? Did you file a UCC Lien to protect your interest?

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  • Ian M.
    Pittsburgh, PA · Member since 2012 · 140 posts · 38 votes
    4y

    @Chris Seveney - correct. Its an unsecured loan. No I don't believe it is a loan against the LLC. Purely an unsecured promissory note. I did not invest because of that so no reason to file anything for me but probably good advice for anyone considering but my guess is that its not an option either.


    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    wow...  I just looked them up online and I'm more interested in how they are able to pay out 17.5% annually (although further down it says 12%-15% note offerings).  I'm more interested in how they are able to borrow funds at that high of a rate and still make money.  For that matter, why do they need to offer that high of a rate...

    0Reply
  • Ian M.
    Pittsburgh, PA · Member since 2012 · 140 posts · 38 votes
    4y

    @David M. my guess is because its an unsecured promissory note. That’s why the rate is so high. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @David M.

    If it’s unsecured debt it’s just like a credit card. Significant risk involved in any unsecured debt.

    Personally I would not touch lending $ out to unsecured debt. Way too much risk involved.

    Much rather make 8-10% secured than 12-15% unsecured

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Ian M. @Chris Seveney

    Thanks.  I saw Ian's post after I posted mine.  risk vs reward..  granted, my comment was somewhat rhetorical.  Lets face it, the higher the yield normally the higher the risk.  Lets face it, if the company could "afford" to get funding more cheaply, it would.  

    1Reply
  • Kang-Li Cheng
    Member since 2022 · 19 posts · 13 votes
    3y
    Quote from @David M.:

    @Ian M. @Chris Seveney

    Thanks.  I saw Ian's post after I posted mine.  risk vs reward..  granted, my comment was somewhat rhetorical.  Lets face it, the higher the yield normally the higher the risk.  Lets face it, if the company could "afford" to get funding more cheaply, it would.  


     This is my thought exactly. If it sounds too good to be true, then it probably is. Why issue debt at such a high rate if there wasn't some sort of risk that commercial lenders are unwilling to take? Until someone from Norada can shed light on this it's not a place to put money. 

    0Reply
  • Marie B.
    Investor · Member since 2022 · 46 posts · 20 votes
    2y
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


     Hey Travis, How has your experience with Norada investing been? I'm considering investing with them and I'm be interested in how your experience has gone so far.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Marie B.:
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


     Hey Travis, How has your experience with Norada investing been? I'm considering investing with them and I'm be interested in how your experience has gone so far.


    I have not invested with Norado, but since someone said it is unsecured here is my question pertaining to secured vs unsecured: 

    1. How much are you considering investing? Reason I ask this is I am curious how people value risk?

    For example, if you are in a secured position and invest $25k and can get 10% per year at $2500 or you can get 15% unsecured which is $3750, are people willing to risk the extra $1,250 a year where you could lose all of your $25,000 investment compared to being secured where chance of losing it all I would view as astronomically lower?

    At what point does that risk outweigh the gain?

    Note: this is an overall question and not forming any opinions on any entity named in this post. 

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  • Travis Hibbard
    Rental Property Investor · Rosemount, MN · Member since 2018 · 8 posts · 8 votes
    2y
    Quote from @Marie B.:
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


     Hey Travis, How has your experience with Norada investing been? I'm considering investing with them and I'm be interested in how your experience has gone so far.


    Everything has gone exactly as communicated and planned. I'm a little over a year and its consistent and reliable. The track record of others i'd interviewed and my experience so far has been great. Marco answered every question I had directly and is quick to respond. If you're curious reach out and setup time to ask questions. Is it risk free no, if it meets your risk tolerance it might be a great option.

    1Reply
  • Johnny Biggs
    Member since 2024 · 1 post · 2 votes
    2y

    I've recently invested with Norada.  The account rep I was assisgned, Michael Johnson, has been exceptional.  There are zero SEC complaints against Norada and zero  BBB complaints.  I get a text message at the end of the month from Wells Fargo informing me that my payment is on the way. Very Happy with Norada!

    2Reply
  • Marie B.
    Investor · Member since 2022 · 46 posts · 20 votes
    2y
    Quote from @Johnny Biggs:

    I've recently invested with Norada.  The account rep I was assisgned, Michael Johnson, has been exceptional.  There are zero SEC complaints against Norada and zero  BBB complaints.  I get a text message at the end of the month from Wells Fargo informing me that my payment is on the way. Very Happy with Norada!


     Thanks for weighing in Johnny! I appreciate it. 

    0Reply
  • Marie B.
    Investor · Member since 2022 · 46 posts · 20 votes
    2y
    Quote from @Travis Hibbard:
    Quote from @Marie B.:
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


     Hey Travis, How has your experience with Norada investing been? I'm considering investing with them and I'm be interested in how your experience has gone so far.


    Everything has gone exactly as communicated and planned. I'm a little over a year and its consistent and reliable. The track record of others i'd interviewed and my experience so far has been great. Marco answered every question I had directly and is quick to respond. If you're curious reach out and setup time to ask questions. Is it risk free no, if it meets your risk tolerance it might be a great option.


     Thank you Travis!! I appreciate you providing how your experience has been so far!

    0Reply
  • Marie B.
    Investor · Member since 2022 · 46 posts · 20 votes
    2y
    Quote from @Chris Seveney:
    Quote from @Marie B.:
    Quote from @Travis Hibbard:

    I've recently decided to invest in Norada notes through my SDIRA.  It is my 2nd time investing in notes but my first with Norada and through an SDIRA.  So far so good and Marco who runs Norada has been extremely punctual and helpful as i've navigated next steps. I will keep everyone posted as I move forward but so far everything has been a 10/10!


     Hey Travis, How has your experience with Norada investing been? I'm considering investing with them and I'm be interested in how your experience has gone so far.


    I have not invested with Norado, but since someone said it is unsecured here is my question pertaining to secured vs unsecured: 

    1. How much are you considering investing? Reason I ask this is I am curious how people value risk?

    For example, if you are in a secured position and invest $25k and can get 10% per year at $2500 or you can get 15% unsecured which is $3750, are people willing to risk the extra $1,250 a year where you could lose all of your $25,000 investment compared to being secured where chance of losing it all I would view as astronomically lower?

    At what point does that risk outweigh the gain?

    Note: this is an overall question and not forming any opinions on any entity named in this post. 


     I haven't invested with them yet. I've met with my financial advisor (for money in stocks/bonds) and they talk about different levels of risk and diversifying funds. My thought process is, if I take $50K and put it towards Norada that $50K is being put to work more aggressively compared to other money that is in more conservative investments. Also, my understanding is that if they aren't able to make payments (e.g., say they all get abducted by aliens or some other very extreme event that would cause a default) then you gain the amount you've invested (or potentially greater) in equity in the company so there is some security. For me, I would probably start with investing $50K with them and see how that goes and then maybe move up to $100K. They also have the option of 3 years. Which is nice since 5 years can feel like a long time to some people. 

    0Reply
  • Ilya Z.
    Rockville, MD · Member since 2017 · 74 posts · 13 votes
    2y

    @Travis Hibbard can the interest be compounded? That is, can you reinvest the interest you earn at the end of a year? Or sooner. Is it a big hassle to add the extra money at the end of each year, or whatever the reinvestment period is? Thx

    0Reply
  • Craig Salzer
    OP
    Milwaukee, WI · Member since 2020 · 38 posts · 13 votes
    2y

    I don't believe there is compounding.  Norada pays you monthly interest on the note and a lump sum payment at the end.

    1Reply
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