Has anyone bought an individual or a handful of mortgage notes

[John McKee]

I wanted to get feedback from those that dabble in buying one or two notes on their own.  What was your experience, what are your returns?  What did you learn?  

[Don Konipol]

Quote from @John McKee:

I wanted to get feedback from those that dabble in buying one or two notes on their own.  What was your experience, what are your returns?  What did you learn?  

90% of our loans are ones we originate.  We have purchased about 10 loans in the last 7 years covering g the other 10% of notes in our portfolio. 

Our notes that we purchase are commercial mortgage, usually partially in default, and we usually are in contact with the debtor to "modify" the note in a way that allows the borrower to make payments. The highest ROI notes we've purchased was a $3.3 million balance note secured by two commercial properties in Arizona that we paid $1.9 million for and a $475k balance note secured by a small retail center that we paid $250k for and that paid off in full 8years before maturity.

The BIG ROI is in purchasing a note at a large discount to unpaid balance and receiving full balance in an early payoff.  

The absolute best book on note investing was published 40+ years ago: Invest in Debt by Jimmy Napier.