Wholesaler · Baton Rouge, LA · Member since 2008 · 471 posts · 98 votes
I am looking for feedback regarding my interest in adding note buying to my REI business strategies. I am currently focused on wholesaling and previously with lease options. As always, I appreciate the "voice of experience" here on BP's to help me decide what worth pursuing or not!
Londonderry NH & Miami, FL · Member since 2014 · 174 posts · 238 votes
9y
@Robert Burns Notes can be a great strategy for any portfolio. Just be sure to read up on the amount of work needed to do them. I company buys 1st lien non-performing notes. We focus on occupied properties that are delinquent. Our strategy is to get as many re-performing as possible (thus receiving cash flow without the tenant headaches), and for those unwilling or unable to pay we offer them cash for keys or foreclose to get the property back. You can then sell outright, owner-finance the property for cash flow, or even rent/sell as turnkey rental for capital appreciation. As with every real estate investment, do your due diligence and plan for the unexpected. Good luck!
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
9y
Hi Robert,
I have a very good friend who did just that, he was a very successful wholesaler who parlayed his profits into a substantial note portfolio and business ( he just wasn't crazy about tenants & maintenance with buy & hold RE ). So yes this is a very good strategy to invest in a more passive way. Best of luck!!
Investor · Lilburn, GA · Member since 2016 · 2 posts · 0 votes
9y
Hi, Bob. I believe that your current strategy can go hand and hand with note buying. I have found note opportunities when I was looking for property and vice versa.
Londonderry NH & Miami, FL · Member since 2014 · 174 posts · 238 votes
9y
@Robert Burns Notes can be a great strategy for any portfolio. Just be sure to read up on the amount of work needed to do them. I company buys 1st lien non-performing notes. We focus on occupied properties that are delinquent. Our strategy is to get as many re-performing as possible (thus receiving cash flow without the tenant headaches), and for those unwilling or unable to pay we offer them cash for keys or foreclose to get the property back. You can then sell outright, owner-finance the property for cash flow, or even rent/sell as turnkey rental for capital appreciation. As with every real estate investment, do your due diligence and plan for the unexpected. Good luck!
Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
9y
@Wayne Snell - Love that strategy. Makes a lot of sense. Anyone interested in pursuing notes should consider listing to last week's podcast with @Bob Malecki. I just loved how simple he made a somewhat of a complex topic. Like they say anyone can complicate things, but it takes a genius to make them simple.
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
9y
Not sure to go so far as use "genius" and I appreciate your compliment, thanks @Chinmay J.. @Robert Burns, note investing is a great way to establish passive cashflow but as Wayne mentions there is a lot of learning and front-end due diligence required. I'm weaning myself off of flipping and note investing is now over 70% of my investment activities.
Londonderry NH & Miami, FL · Member since 2014 · 174 posts · 238 votes
9y
@Chinmay J. Thanks for the vote of confidence :) @Bob Malecki's webinar is a great place to start. I have recorded a few videos about the entire process we go through to buy and workout our notes as well which can be found by linking to my Platinum Ventures Facebook account from my BP profile. I'm not allowed to post the link here due to BP rules, but if interested, you can PM me for the direct
Specialist · Carmichael, CA · Member since 2017 · 33 posts · 14 votes
9y
@Robert Burns, I just finished reading Dave Van Horn's excellent eBook called Introduction to Note Investing. You might find it useful as well. I gave me a good overview of the opportunities and options I have in Note Investing. Dave's book can be found https://www.pprnoteco.com/learn/
I am not paid by Dave, nor do I personally know him, but I am grateful to him for his informative eBook. I'm just giving a newbie's honest opinion of his book and how it helped me get a better understanding of Note Investing. Good luck with your new endeavor Robert.
Investor · Newark, DE · Member since 2015 · 248 posts · 178 votes
9y
@Shawn Crawley there are various outlets for notes. How you get them depends if you are looking for Non-performing notes, performing notes etc. If you are looking for performing notes, PPR Note Co has them, if you are looking for non-performing notes you have to network and figure out who has the sources of them. Some will be joker brokers, some will be legit. There is much to learn in the note space, I am learning everyday. Check out free education from Scott Carson, or note school by Eddie Speed. I went the Scott Carson route and found plenty of value in the information he provides. Never hesitate to ask questions!