Anyone fund a note with Safeguard Capital Partners?

Tax Liens & Mortgage Notes
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Anyone fund a note with Safeguard Capital Partners?

Phil G.
Real Estate Broker · MA · Member since 2013 · 361 posts · 297 votes

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.

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Dan Liston
Member since 2022 · 5 posts · 5 votes
2y

I have worked with Safeguard Capital Partners as a lender for about 5 years and it has been a complete nightmare. Not only horrible investments, but a complete waste of money and time. I have seven loans outstanding with them and have been forced to foreclose on four of them. The attorneys and title companies I've been forced to deal with during the foreclosure process have also told me they are shocked by Safeguard's incompetence. 

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  • Chad Cutshall
    Investor · Plainfield, IL · Member since 2015 · 2 posts · 1 vote
    8y

    I have not, but have several notes I can sell.  Do you know if this is a good buyer or reseller?

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  • Phil G.
    OP
    Real Estate Broker · MA · Member since 2013 · 361 posts · 297 votes
    8y

    @Chad Cutshall

    I can't answer for them, but their website doesn't indicate that buying/reselling notes is part of their business model.

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  • Randy Rodenhouse
    Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
    8y

    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.

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  • Amit P.
    Ooltewah, TN · Member since 2017 · 75 posts · 38 votes
    8y

    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.

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  • Larry Masters
    Member since 2018 · 1 post · 0 votes
    8y

    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.

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  • Phil G.
    OP
    Real Estate Broker · MA · Member since 2013 · 361 posts · 297 votes
    8y

    @Amit P., @Larry Masters

    Just saw your replies.  Thanks for your feedback!  

    How much of a credit do they offer at closing to cover the servicing fee?

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  • Amit P.
    Ooltewah, TN · Member since 2017 · 75 posts · 38 votes
    8y
    @Phil G. It was $300 for me.. I don't know if varies based on the size of the note or not.
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  • Jonathan Nixon
    Rental Property Investor · Fort Lauderdale, FL · Member since 2018 · 86 posts · 33 votes
    6y

    I have a handful of notes with them. So far so good.. Just be sure to vet each property and the terms within.

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  • John Humphries
    Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
    6y

    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?

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @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.

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    6y

    @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. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @Jamie Bateman

    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.

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    6y

    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. 

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  • John Humphries
    Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
    6y

    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. 

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    6y

    @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. 

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  • Scott Parenti
    Investor · Clovis, CA · Member since 2016 · 2 posts · 1 vote
    5y

    I have a note with them.  Things went to crap through covid and the borrower stopped paying.  Safegaurd seemed to think everything would be ok and strung me along with bright expectations.  Now, I had to hire an attorney to foreclose in hopes of recouping my $.  I don't think they care anymore now that the case is in the hands of an attorney.  Feel free to contact me to discuss.

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  • John Humphries
    Investor · Courtenay, British Columbia · Member since 2016 · 103 posts · 21 votes
    5y

    @Scott Parenti that sounds all too familiar. Safeguard strung me along for several months of late partial payments and very little communication. They had said that they would take care of any foreclosure issues and that it would be fairly hands off. When it has come down to it though, they have just pawned me off on an attorney and said that it would cost $500. The attorney had a good laugh about that and said that they had sent several others his way with the same story. The process will obviously cost quite a bit more and Safeguard seems to have washed their hands of it completely. 

    I would not recommend this company to anyone. Very disappointed in my experience, but good lessons learned.

    Good luck with closing out your notes. Hopefully, there is some equity in your property.

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    5y

    Many investors lost a lot of $ with Safeguard in Jackson, MS. A total disaster. I don’t know if the cause was fraud, incompetence, or a combination, but it is really sad.

    I was able to work directly with my borrower and my loan is still performing (amortized it rather than keeping the balloon). But I wish I never invested through them. 

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  • Son D.
    Rental Property Investor · boston, MA · Member since 2017 · 202 posts · 222 votes
    3y

    @Jamie Bateman Hi Jamie. How is your note in Jackson going? Is it still performing?

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    3y

    @Son D. the borrower paid off the loan a few months ago. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Jamie Bateman:

    @Son D. the borrower paid off the loan a few months ago. 


     Wow - I did not think you ever got payoffs :) 

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    3y

    @Chris Seveney I only get payoffs on loans I did not buy at a discount. 

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  • Rob Gillespie
    Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
    3y

    @Phil G. I was actually googling and saw this post pop up about safeguard so I figured I would jump into the conversation. I cant speak for every deal they have ever done, but I will say that any deals That I was involved in with safeguard and there was any issue whatsoever they jumped in and worked diligently to solve the issue as if it was there own money. 

    There are many of us that are long time repeat clients on both ends of lending and borrowing that have worked with them for years and we are all very satisfied. They have a vested interest into keeping everyone happy because it is way easier to keep a client then to go find a new one. 

    Sorry to address such an old post, but when I saw it pop up on google and I was familiar with the company, thought I would share my experience. 

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  • Greg Loberg
    Member since 2022 · 8 posts · 0 votes
    2y

    I have been a lender on many notes through Safeguard Capital Partners over the last 5+ years. It has been a very bad and costly experience. I won't go into a lot of detail here, but I was forced to foreclose on three properties in Baltimore with three different borrowers. The foreclosure attorneys discovered that property deeds were sold without my knowledge, and the new LLC owners could not be contacted. It was a nightmare, and the foreclosures took more than a year and were extremely costly. The properties are trashed, and not worth much. No bidders at auction. It just doesn't get much worse than this. I sure learned a valuable lesson with Safeguard.

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  • Jamie Bateman
    Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
    2y
    Quote from @Greg Loberg:

    I have been a lender on many notes through Safeguard Capital Partners over the last 5+ years. It has been a very bad and costly experience. I won't go into a lot of detail here, but I was forced to foreclose on three properties in Baltimore with three different borrowers. The foreclosure attorneys discovered that property deeds were sold without my knowledge, and the new LLC owners could not be contacted. It was a nightmare, and the foreclosures took more than a year and were extremely costly. The properties are trashed, and not worth much. No bidders at auction. It just doesn't get much worse than this. I sure learned a valuable lesson with Safeguard.


     Unfortunately, many investors I have spoken with have had a similar experience. 

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