Getting Started with Note Investing

[Charles Kennedy]

Hey everyone,

I’m diving into note investing and looking to connect with others who buy/sell mortgage notes. I’m especially interested in learning what you look for in a note and hearing about any deals you might have available. Would love to trade insights and possibly partner on future opportunities!

Thanks!

[Chris Seveney]

Quote from @Charles Kennedy:

Hey everyone,

I’m diving into note investing and looking to connect with others who buy/sell mortgage notes. I’m especially interested in learning what you look for in a note and hearing about any deals you might have available. Would love to trade insights and possibly partner on future opportunities!

Thanks!

We all look for different things, for example we buy nonperforming notes so what we look for is different than a performing note. To start I recommend a performing notes. The key things to look for on a performing note are the loan to value, property value and how it was obtained (for example seller financing I would recommend it having some valuation or appraisal as many times the value is inflated), what the borrowers pay history and credit are, the state the property is in etc. 

Remember buying a performing note that gets you 8% with a strong borower will end up better than a sketchy borrower where you thought you would get 10-12% but they stop paying...