New to Note Investing. Where do I start?

8 Replies

Hello

First post on BP. I am interested in Note investing but I am a US citizen living in Canada. Will that be a hinderance in investing US notes. Also, is there anyone on here that does note investing in Canada (GTA) that can give some insight in getting started?

Thanks in Advance

Originally posted by @Calvin Church :

Hello

First post on BP.  I am interested in Note investing but I am a US citizen living in Canada.  Will that be a hinderance in investing US notes.  Also, is there anyone on here that does note investing in Canada (GTA) that can give some insight in getting started? 

Thanks in Advance

 Hi Calvin, 

I am a Canadian citizen investing in US notes.  I'll shoot you a PM as there's way too much to put into a post on where to start.  

@Chad U. I did a fair amount of HML in BC as a US citizen.. do you guys play in that arena as well.

like right now I am thinking with the Loonie were its at.. I could make a loan and maybe when it pays off the loonie will strengthen and then I can be a arbitrager as well.. I did that last time in 2001 2002 when Loonie was in the 65 yo 70% to the dollar then when I got paid off it strengthened and my yield went up.. same when I bought the properties and sold later.. now I understand the reverse can happen.. but just curious.. and since its rare to have a default in CA. I look at that as a pretty safe lending arena..

Originally posted by @Jay Hinrichs :

@Chad Urbshott I did a fair amount of HML in BC as a US citizen.. do you guys play in that arena as well.

like right now I am thinking with the Loonie were its at.. I could make a loan and maybe when it pays off the loonie will strengthen and then I can be a arbitrager as well.. I did that last time in 2001 2002 when Loonie was in the 65 yo 70% to the dollar then when I got paid off it strengthened and my yield went up.. same when I bought the properties and sold later.. now I understand the reverse can happen.. but just curious.. and since its rare to have a default in CA. I look at that as a pretty safe lending arena.. 

Jay, the CAD dollar is at 0.76 to the US dollar, it just shot up 1 cent from just below .75 where it was at it's low for the year. IMHO, the fair value for our dollar is somewhere in the .75 to .80 range, so it may still be at it's low point. However, the CAD economy is firing on all cylinders at the moment and real estate prices are analogous to US prices circa 2006-07. Many people here think that real estate will just keep going up in perpetuity, as they believe that population growth and foreign investment will keep it propped up. Well....given Trump's stance on trade, and the tax cuts recently put into place has put CAD into a precarious position. We are no longer competitive due to the tax arbitrage and companies are already setting up shop elsewhere. ANd to also add fuel to the fire, the Fed government recently inflicted a country-wide policy that any potential borrowers need to qualify for their locked in interest rate, plus 2%, this was put in place to cool the runaway RE prices in certain parts of the country, namely Toronto and Vancouver. This has definitely thrown some water on the fire, and anything in the 7 figure range (which is half the stock in both areas) is sitting for months, and only selling with major price drops.

So in a nutshell, I wouldn't touch anything here with a 10-foot pole, however that's my opinion and I'm a bit more risk averse.  If the dollar drops down to say 70 cents, then could be an opporunity for US investors.  

Originally posted by @Chad U. :
Originally posted by @Jay Hinrichs:

@Chad Urbshott I did a fair amount of HML in BC as a US citizen.. do you guys play in that arena as well.

like right now I am thinking with the Loonie were its at.. I could make a loan and maybe when it pays off the loonie will strengthen and then I can be a arbitrager as well.. I did that last time in 2001 2002 when Loonie was in the 65 yo 70% to the dollar then when I got paid off it strengthened and my yield went up.. same when I bought the properties and sold later.. now I understand the reverse can happen.. but just curious.. and since its rare to have a default in CA. I look at that as a pretty safe lending arena.. 

 Jay, the CAD dollar is at 0.76 to the US dollar, it just shot up 1 cent from just below .75 where it was at it's low for the year.  IMHO, the fair value for our dollar is somewhere in the .75 to .80 range, so it may still be at it's low point.  However, the CAD economy is firing on all cylinders at the moment and real estate prices are analogous to US prices circa 2006-07.  Many people here think that real estate will just keep going up in perpetuity, as they believe that population growth and foreign investment will keep it propped up.  Well....given Trump's stance on trade, and the tax cuts recently put into place has put CAD into a precarious position.  We are no longer competitive due to the tax arbitrage and companies are already setting up shop elsewhere.  ANd to also add fuel to the fire, the Fed government recently inflicted a country-wide policy that any potential borrowers need to qualify for their locked in interest rate, plus 2%, this was put in place to cool the runaway RE prices in certain parts of the country, namely Toronto and Vancouver.  This has definitely thrown some water on the fire, and anything in the 7 figure range (which is half the stock in both areas) is sitting for months, and only selling with major price drops.  

So in a nutshell, I wouldn't touch anything here with a 10-foot pole, however that's my opinion and I'm a bit more risk averse.  If the dollar drops down to say 70 cents, then could be an opporunity for US investors.  

Well one thing is for certain the still water fly fishing is consistent and very good.. as long as that remains I am good. :) And in the day I used to fly myself into CA that was always fun.. If I went into Kamloops I never got checked by immigration.. just called CAN PASS.

now going back into the states that was different full inspection of the airplane..   when I was up there in May I got a RE mag from Kelowna I was SHOCKED at were the pricing has gone there.. Many many  2 to 15 million dollar props.. when I bought up there in 2001 300k US bought you a pretty stunning home things have TRIPLED>

@Calvin Church Have you considered private note-lending with an experienced team? There are still many opportunities to generate 12% annualized returns in 1st lien positions. I am in several note-lending opportunities currently. Regarding the fact that you are in Canada, represents no reason to not achieve this. Feel free to message me in order to discuss further, I am more than happy to help.