Minimum Capital For Buying Notes

[Account Closed]

If I want to be an individual investor, how much money do you need to have to play? Is it possible to buy some small notes in the $5-10K range?

[Bob Malecki]

Sure but if you are buying 1st position debt, don't expect the underlying asset to be very pretty. I started out with a $14K first position NPL on a home at the time worth $30K. Got the borrower to pay $10K towards his arrearages of $25K and modified his loan to 8% (from  11%) and reamortized to a new 360 month term to get his payments down to around $350/month. After about 14 payments our cost basis was $0.00. 

Borrower has defaulted a few more times over the years, we've had to file foreclosure which got him to the table for a forbearance agreement and resume payments.  With 312 payments remaining and his home value now in the $70K range, having to spend some monies on legal fees every so often does not bother us.