Was curious if anyone funded a note originated by Safeguard Capital Partners and what your experience and results had been. They originate 5 year interest only notes for buyers of turnkey SFR properties working through a network of turnkey providers.
I have not, but have several notes I can sell. Do you know if this is a good buyer or reseller?
I can't answer for them, but their website doesn't indicate that buying/reselling notes is part of their business model.
Not exactly sure what Safeguard does but if they are originating notes for owner occupied properties then they need to follow the Dodd Frank rules and anyone buying such notes should make sure they did. Sounds like they may not be since you mentioned turnkey SFR which is usually a rental property.
Brought my first note with them in June. Just got second payment today! They currently pay 9% interest only payments. There's a transaction fee cut off each payment (to cover the cost of the company that handles the transaction). It's a little annoying but to cover this cost they provided a credit at closing. @Randy Rodenhouse as far as I know these are not owner occupied properties, they are investment properties. My experience so far has been positive, but it's early days.
We have been buying notes from Safeguard for 5 years and couldn't be happier. Just another way to diversify and get a great return at the same time. Where else can you get 9% monthly with little or no risk.
I have a handful of notes with them. So far so good.. Just be sure to vet each property and the terms within.
Curious to know how people are finding their experience with Safeguard Capital Partners now in the midst of COVID? I have just had my second month of missed payments from my note with little to no communication from the company (other than "because COVID." How is everyone else doing with their notes?
@John Humphries - without knowing your contract, I would not let missed payments go to far down the line, I would recommend maybe its time to have your atty review the contract and reach out to them.
@John Humphries , I have one note that was originated through them but I am dealing directly with the borrower now. Many investors have had major issues with their Safeguard notes, especially in Jackson, MS. Safeguard is trying to clean up the mess but it seems they are in over their heads.
If I understand what they do- it looms like they are just a middle man where someone wants financing on a property they find a lender for it and will create documentation. Sounds like they also connect with a 3rd party servicer.
Looks like if it defaults they have no skin in the game as they are acting more as a broker.
I would recommend anyone lending in this environment to fix and flippers or any type of investment to be careful and get a personal guaranty and make sure person has a long track record.
Yes, @Chris Seveney , this is basically what their model is. However, they do not connect with a 3rd party servicer. They try to act like a servicer and broker at the same time (these are not owner-occupied so not as much red tape) but in reality, they are just a broker that pairs a borrower/flipper/landlord with a lender.
This model can work but I will not be working with this company again, that's for sure. I am still a bit leery about Safeguard's relationship with this particular borrower and even the closing agent. It seems Safeguard is genuinely trying to clean up the Jackson, MS, mess but they are also marketing lots of other deals in other cities still. No thanks.
Hey guys. Thanks for the insight. @Jamie Bateman , I'm curious how you removed Safeguard from the equation in order to deal directly with the borrower. I am not there yet, and hope to not have to go that route, but would be good to know all of my options.
@John Humphries , feel free to DM me. At one point, the borrower reached out directly and from then on I saw no reason to keep dealing with Safeguard. It actually saves me $9 per month.