Note investing - How to take your first step...
I posted the below in another forum and got a lot of good feedback so i thought i will share it with the BP community as well! Please comment and let me know how your experience has been. If you have not been able to take the first step yet, then share with us what's stopping you!
We are a very small community and everyone is always very reachable and friendly as you probably have noticed. I'm hoping the below can bring at least 1% of value to the table, . I know, myself, I asked a zillion questions before i bought my first note. Here's my "lessons learned", recommended next steps or at least what worked for me:
1) Not sure if there are any Tim Ferris fans in here, but when i started investing in notes about a year ago, i had just finished reading the 4 hour body and 4 hour workweek. Back then, i was in pure "Analysis paralysis" mode, couldn't move forward, was worried about putting my first investment in. The main idea i stole from Tim Ferris is the 80/20 rule which helped me understand that i need to know just enough to be able to take my first step, i don't have to know the entire note world before investing in notes, i need to know just enough to be able to make my first move.
2) Always ask questions, like i said, there are a lot of experienced note investors who put out alot of great content out there to help other investors.
3) I definitely recommend you take advantage of any courses offered here or anywhere else. There are alot of good teachers that can help you make that first step.
4) Try to JV! (Joint venture). That was actually my learning experience, I JV'd on my first note and learnt a lot through the investor who was managing the note! This will work for those who don't mind taking a leap and growing their wings on the way down - Les Brown :)
5) Don't go BIG! Some might argue this point, but in my opinion, if you have big capital to invest, try to walk before you can run! Get one note or maybe two notes at the max; Go through the experience of bidding right, due diligence, recording, workout/exit strategy, measure your success, re-calibrate and do it again with a higher number of notes, now that you have a bit more knowledge of what went right and what went wrong!
6) Always remember to have fun! I've seen many real estate investors recently who switched to notes because of the high returns but then ended up not enjoying the business of paper! Things move super fast in this industry and you need to be flexible and ready to absorb a bit of chaos and quick closing!
7) ALWAYS GIVE BACK, AS SOON AS YOU CAN!
Happy note investing out there.
Feel free to reach out with any questions you may have and i will do my best to answer!