New member here! Hello Bigger Pockets!!! Entering Note investing

Rental Property Investor · Moreno Valley, CA · Member since 2018 · 4 posts · 0 votes

I just learned about note investing and I’m willing to take advice on how to get started. I purchased The Real Note Investing Book. Is there any low capital entry points for buying a note; 2nd mortgage loan?

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Michael Queen Note investing can be a great business to be in. I would caution you that I hope your education is more than one book. It takes months (at a minimum) to learn all the ins and outs of note investing. You can buy a note for $500 but it will be unsecured or you can spend $100,000. My recommendation is to find a mentor.

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Dan DeppenBusiness Member
Erie, CO · Member since 2017 · 274 posts · 267 votes
8y
Welcome to note investing! I'm not an expert on 2nd's so I'll let other folks speak to that. In the world of 1st's entry points will typically be $20,000+. You can certainly find notes for much less than that, but it gets very risky if you go too low end. Also, are you looking at performing or non-performing? Don't forget you also need capital to work out the note and cover other expenses. Books are a great place to start, but I would also get some form of training before diving in.
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George Blower
Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
8y
@Michael Queen
Welcome to Bigger Pockets.
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Dave DeMarinis
Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
8y
Welcome Michael. To get started, can you clarify how much low Capital is? I’m happy to give you a few ideas and things to consider but need to know specifically how much you are looking to invest.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
notes require cash to buy.. just pop on to FCI exchange and look around that website..
out in the mid west and other low value areas there are notes available very cheap and seconds of course that are in default can be very cheap.. but then like others have said you need money to work them out.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
8y
Michael Queen Note investing can be a great business to be in. I would caution you that I hope your education is more than one book. It takes months (at a minimum) to learn all the ins and outs of note investing. You can buy a note for $500 but it will be unsecured or you can spend $100,000. My recommendation is to find a mentor.
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Michael Queen
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Rental Property Investor · Moreno Valley, CA · Member since 2018 · 4 posts · 0 votes
8y
Thank you Chris Seveney. I do need to partake into more due diligence in the world of notes. Seeking Mentor...and books. I have time to seek out the knowledge/steps.
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Michael Queen
OP
Rental Property Investor · Moreno Valley, CA · Member since 2018 · 4 posts · 0 votes
8y
Thank you all for replying. I feel the love. I will definitely take in all the advice. My next step is to keep reading & build my capital.
@dave
@Dave DeMarinis I have 2,000 right now. Sounds like I have some saving to do.
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Ian Kee
Investor · Milwaukee, WI · Member since 2015 · 130 posts · 60 votes
8y
Jeff Armstrong with Armstrong Capital is who you should be listening to anything regarding notes.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Ian Kee:

Jeff Armstrong with Armstrong Capital is who you should be listening to anything regarding notes.
he has an interesting service of appraising notes.. I wonder how he does that since most notes are valued at what a willing buyer will pay for a certain yield and a seller will sell for a certain yield to them. // not really like real property were you have comps and stuff.
but looks like a lot of good content on there have not read any of it.. so I should say lot of content don't know how good it is.. but I suspect its probably a good read for most instead of spending money they don't have on courses.
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Kevin Phu
Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
8y
Welcome! You came to the right place to learn! Another book I recommend is Performance Anxiety. I, myself, am educating my self on the notes market. Non performing 2nd positions to be exact.
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Odie Ayaga
Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
8y
Welcome @Michael Queen! Funny I came upon this minutes after responding to you on another thread! I think @Chris Seveney hit it pretty well on the head. Partials are another low cost entry point into notes. Less important, though, to what and where to buy notes is learning what to do with them. It's a steep learning curve, but it's not rocket science.
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Leighann Davis
Lakeland, FL · Member since 2017 · 23 posts · 13 votes
8y
I would also recommend Martin Saenz's book Note Investing Made Easier and Jimmy Napier's Investing in Debt. Both very different but very helpful.
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Kobi Shalhon
New York City, NY · Member since 2015 · 2 posts · 0 votes
8y
I’m looking to buy notes in NY if anyone has any notes to purchase all cash please contact me
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Kobi Shalhon
New York City, NY · Member since 2015 · 2 posts · 0 votes
8y
Please contact me if you have notes in Ny
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