LOOKING FOR IDEAS... NOTE BUYERS VS PASSIVE INVESTORS?

5 Replies

Hello everyone, So I have been investing for about 3 years and have made some awesome progress in the last year. I have taken a few models and put them together. I have taken the mobile home investing world and merged it with the note world. So I have done roughly 30 mobile deals this year and a originated notes on 25 of them. So I have taken the time to prove this model and all my note buyers are super happy. There are some laws and rules here in NV that make this such a valuable investment! I have done the market research, and I have the ability to 16 - 20 of these for the next 3 years! Now at a 20-30k note price that is only 33-50 notes to do a million dollars worth of inventory! So I guess my question is should my time best be spent marketing to a traditional note buyer (which has proven to be a miss so far) or a passive investor?

John Fedro and I have recently done a webinar about the lay out of the model. 

 https://youtu.be/OTpS84MjBmQ

You will do better with passive SD IRA investors IMO. If you go that route I would suggest offering a warranty on the notes you sell. These types of investors are not prepared to deal with a default.

I think the question is specifically for mobile home paper.  That type of collateral is niche to begin with.  So there is a smaller amount of investors in the market place who will take that type of collateral.  Even less of a number of investors for non-conventional underwriting.

It is not clear what the "traditional note buyer" definition is according to the OP.  That said, if the loan is made right and compliant then there are investors out there  for it but you may have to go where the investors have a decent understanding of the collateral.

I create the same note amounts $25k-$40k on single family residencies around the country and sell those notes to passive investors now. There are about 40 examples on my website in the "trust deeds" section.  I'm not sure how the same model works for mobile homes, as lending is more restrictive with mobile homes, but the model I've created for homes works just as you mentioned.  Let me know if you would like to share ideas.

Thanks guys. Yes all my Notes go though a lic MLO and get a full doc package. I keep all my investors completely passive. The worst thing they ever have to do is call me on the 5th and let me know the money was not deposited.