How to do note investing

Question

Hello everyone,

I've been in real estate for about three years. I started out wholesaling (still do some.) My wife and i have done some fix and flips but we're looking for more passive income. So this year we just acquired to rental with a third in the works. However we've been looking for Multi-family in 1.5 hour drive of Shelby, NC. Our criteria is $2m c+ condition looking for at least 8% cash on cash return and %15 irr return no repositions please.

That reason for this post nonetheless is learn a little more about note buying? I get the terminology but still dont the confidence in taking that path. Cam some please help me understand better or point me in the right direction with books and recommendations? Any help would be greatly appreciated!

Bob Malecki · Answer

Hi Darius as Jamie mentions my business partner Josh's book called Paper Profits would be a great start for you. Also feel free to listen to my podcast number 211 here on BiggerPockets. Happy hunting!

Jamie Bateman · Answer

This podcast is very good: https://gooddeedsnoteinvesting.com/podcast/ @Chris Seveney @Gail Greenberg

And I recommend this book: https://www.amazon.com/Paper-Profits-Beginners-essentials-mortgage-ebook/dp/B06Y4C7X6Y @Joshua Andrews

Brett Burky · Answer

I also agree with @Jamie Bateman about Joshua Andrews book. It has some great break downs in the back that will really help you process the evaluation and strategies used in note investing.

That and learning how to use the correct calculator are key to doing it right. He also breaks that down in earlier chapters.

Another source of knowledge is Dave Van Horn's book that I think you can buy here on Bigger Pockets. If not you can find it on Amazon. It has some really great creative financing ideas and examples as well - great on mindset.

Best of luck to you.

Logan Hassinger · Answer

@Darius Howell

DM me and we can share contact info. I’d love to chat with you about notes.

As for education, I learned from Scott Carson with We Close Notes.

Chris Seveney · Answer

@Darius Howell

I would recommend reading some of the books below and then note investing is like fix and flipping. You learn by doing. I recommend to for people to either by a low dollar performing note so you can understand the overall process and nuances or JV with someone.

In both instances you can learn a ton and then decide if the work that is involved (note investing is not passive) is worth it or if you want to continue with other ventures

Darius Howell · Answer

@Bob Malecki I appreciate you reaching out and giving great advice. I will definitely listen to it and get back to you and let you know if I understand completely or not.

Darius Howell · Answer

@Jamie Bateman thank you for the podcast and recommendation! I've listened to the podcast and definitely interested in the CFD and going to do some research on it.

Darius Howell · Answer

@Logan Hassinger thanks man! I appreciate it, definitely look forward to talking!

How to do note investing

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