How do I start off with investing in notes.

Question

Hello everyone!

I am interested in investing in re-performing 2nd mortgage notes. I have been following some of Dave Van Horn's posts and interviews along with checking out his company website (PPR). After going through some of the courses that his company offers, I have decided that I would like to take the next step with this method of investing. My questions are: How do I get started? Do I need to form a company to invest in these notes? Can anyone invest in these notes or do you have to be an accredited investor? Thanks!

Dave Van Horn · Answer

Hi Duy Luu,

In reference to your other question, you can buy notes as an individual or as a company. If you’re going to continue buying notes, over time, you may want to consider setting up an LLC. But, your notes can be transferred from your own name to an LLC if you choose to set one up later on—this is much simpler than transferring properties.

I hope some of this helps!

Dave Van Horn

Dion DePaoli · Answer

There is no requirement to open a holding company and place the assets into it.  A holding company does provide liability protection but in the post it is not clear how you would capitalize the trade.  Capital sources will have some affinity on the funding and holding structure of the investment.  This type of advice should be sought from your accountant. 
	
	Can anyone invest in the loans?  That depends.  Some states require the investor to hold a state approved license, other states do not.  The Seller of the asset may place restrictions on the designation of the Buyer.  Some Sellers will look for accredited investors, others will not.  The Seller may have some liability selling to a non-accredited investor depending on the details of the deal.  
	
	If you like Dave's program, which many folks do, simply reach out to his company and start the process.  Good luck and welcome to whole loan mortgage investing.

Michael Williamson · Answer

@Duy Luu Thanks for the update. It is an area of real estate investing that I'm interested in and need to research more.

Duy Luu · Answer

Hello Michael. I have registered with PPR. Currently, I am interested in performing notes. I have not purchased one yet. Just waiting for a good performing note within my budget to be available for purchase through PPR. There were actually a few but others have beat me to it.

Hello Marty. Thank you for offering your assistance! Please tell me more about yourself. How long have you been investing in notes? What is your strategy in regards to your note investments? How many performing notes do you have in your portfolio? What is the percentage of those performing notes becoming non-performing?

Marty Happle · Answer

If you have more questions on buying notes send them my way.

PPR is where I started too.

Michael Williamson · Answer

Hey Duy did  you get registered with PPR?

Michael

Duy Luu · Answer

Thank you Joe!

Account Closed · Answer

@Duy Luu,

I wish you good luck in buying notes.

Joe Gore

Duy Luu · Answer

Thank you for your help Dave! I look forward to working with you!

Bill Gulley · Answer

How could you have taken several courses on this and not know where to begin?

I would have thought Dave would have opportunities.

Make sure you know the difference between brokering and investing, most think making money is investing, not so. Any business entity will mean you're not "investing" but in the note business, I doubt you want to go there.

I'd just enter my name in any internet thing, much of that is a gate keeper I suspect and enter your email, that will probably get you on the list to look.  :)

How do I start off with investing in notes.

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