Hello,

Lately there’s been a lot of talk about flips, BRRRRs, and small multifamily, but not as much focused discussion around performing notes and how investors are using them in today’s market.

For those of you who are active in note investing:

• How are you currently finding performing notes (platforms, relationships, direct outreach, etc.)?
• What yield/return ranges are you targeting on true performing paper right now?
• Are you primarily buying existing notes, creating notes on your own deals, or a mix of both?
• Which property types or markets (only within the US) are you most comfortable backing with a note, and why?
• How are you stress-testing your deals given interest rate changes and possible price softening?

If you’re willing to share, it would be helpful to hear:

• One recent performing note deal (high level only: property type, state, basic numbers).
• The biggest risk you watch for with performing notes that newer investors often overlook.

The goal of this thread is to learn from others’ experience—what’s actually working, what’s not, and how investors are thinking about risk/return with performing notes right now. Looking forward to hearing how the more experienced note investors here are approaching this niche.