Note investing mentoring

16 Replies

@Scott Nichols

1. Who is the mentor and what does it include?

For $20k I would recommend teaming up on a JV deal where you can be an active participant in the deal and get to learn from them as well as potentially make some $. There are also a lot of resources out there to get a good background on notes (podcasts, youtube, biggerpockets etc).

Whoever you go with DO A BACKGROUND CHECK ON THEM.

@Scott Nichols - I have experience with a $20K mentoring program. The one I chose is a solid group of experienced, reputable professionals, has a constant flow of content, and access to input when you're off track or relative to your specific deals & questions. In hindsight, however, I wish I had allocated that capital into assets. Will I make back the money I spent on the program? Yes. But I believe I would have based on other education I've paid for at lower price points taught by equally reputable and smart professionals. Not to mention free resources which I'll also cover below. 

Not knowing your goals, experience, potential focus in the note space, or personality - I'm going to wing this and see how it goes:

1. Listen to the entire "Note Inc." podcast. It's laid out like an introductory course on notes. Entertaining and worth the time. (Free)

2. Search the "The Note Queen" on YouTube. I really like Dawn Rickabaugh's take on "Property and Paper." On YouTube you'll find her recorded webinars. You can also sign up to participate live where she'll help you to drill down on deals if you ask her to. (Free)

3. Join Facebook groups on notes. Some who run the groups also host podcasts which are educational. (Free - except for allowing FB to know everything there is to know about you)

4. Read any or possibly all of these books: Invest in Debt (Jimmy Napier), Real Estate Note Investing (@Dave Van Horn ), Note Investing Made Easier (@Martin Saenz ), Bulletproof Title Due Diligence (Alex Goldovsky). As you may have guessed, Mr. Van Horn and Mr. Saenz are accessible through this forum as well.

5. Consider purchasing a performing (preferably not re-performing for your first note) note from someone reputable for your first deal. Mine was from a flipper/turnkey operator on a house in Memphis. An almost brand spanking new note created by someone I know and trust who I know would most likely buy it back from me if it ever goes south. It won't and I'm still collecting payments on it today. I recommend this so you get used to buying "paper" and everything that goes with it.

6. Listen to the Good Deeds Note Investing Podcast. @Chris Seveney co-hosts this one with @Gail Greenberg . It's like tales from the non-performing notes front lines. I love it and pick up great stuff all the time.

7. Lastly, I have positive first-hand experience with a couple of other paid educational resources: "Note Investing Academy" and "Note Investing Tools." Of course, you could consider joining one of these sooner rather than later, but I gave you some free stuff to wet your whistle first... and it's good stuff at that. 

Hope this helps. I love to learn and especially have enjoyed learning about notes. Go get 'em...

@Scott Nichols , I would also check out the Paper Source Symposium for some online content and if you are interested in their event next year, you could do that also.  I have heard really good things about the event: https://papersourceseminars.com.  I have been involved with teaching through Donna Bauer "The Original NoteBuyer".  I have been to her academy in Cincinnati a couple times and have joined her mastermind group.  The resources above or one of these are also helpful.  I have found benefit to the mastermind group as it is a small group and direct access to someone with 30 years of experience, but that is not for everyone and there are lots of ways to invest and get experience as well.

As others have said, a 20k program isn't worth it. Their suggestion of a JV is good. Or you could buy a performing note and make profits while learning the administrative aspect of notes (ie servicers)

@Scott Nichols

I’m not an active note investor, but I’d highly recommend checking out Gary Johnston’s financial calculator class before dropping $20k in a mentoring program.

Not only will you get a tremendous deal of confidence in the fundamentals of discounting notes and running the calculations, but you’ll also get great strategies for buying notes as a side-benefit from learning to creatively structure debt.

@Scott Nichols

Here is my take on this. If you have atleast $100k to invest then spending $20k for mentoring could atleast be considered. Anything less than that then don’t bother.

Reason I say that is I see people today with $20-50k and they drop most of it on training and then have no money to invest. You will never get your ROI back. Some may say to use OPM but I am not a fan of using other people's money if you don't have a good track record and truly know what your doing.

Also you will need to do this essentially full time. If your plan is to buy under 10 notes a year I would also say don’t do it. At that volume you are much better off being passive as not only is there the training but time, overhead and costs to running a business.

Look at it as going back to college. Are you truly committed and have the resources. That is how you answer the question.

I think to pay for anything (mentor, workshop, course, "master-mind," education, etc.) boils down to paying for speed. Hopefully, the more you pay, the faster you learn. The trick is, did you get a good value (ie; ROI)? I personally favor books because they tend to have the most/best info for the price, but they may be a lot slower and you have to read several. I know some people who "just throw money at it" to get things done quicker, but I personally never would. I would rather go the JV route and earn while learning. My favorite of all the good answers from above are from @Marco Bario and @Chris Seveney . Good job guys; I agree.

Something I've really wanted to learn how to do for non-performing 2nds is to prosecute pro se foreclosure actions in federal court based on diversity jurisdiction. Risky business but could save so much on the lawyers and foreclosure mills take too long.