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Tax Liens & Mortgage Notes

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David Hite
  • Commerce City, CO
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Deed trust vs note fund

David Hite
  • Commerce City, CO
Posted Apr 11 2018, 19:22

Good evening everyone!

 So, I want to get people input on investing in deed trust notes vs note funds.

  By deed trust notes, I mean you can find companies that issue shorter term loans, basically hard money, who then turn around and sell the note to that loan backed by the real estate.  Usually it’s for ~3 years or less, most will offer between 9-12% on that note.  Usually interest only payments with balloon at the end for  the initial investment amount.

Versus a note fund, which will have a minimum investment, say $10k, give a return of 12%, and then after three years you are given all your initial principal back.   Ie PPRnote fund.

  Thanks 

Dave

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