Have anyone invested in mortgage note in EquityBuild Finance LLC?

15 Replies

I constantly received email from EBF for mortgage note investment, with 12-19% returns...Does anyone invested in their note before?

Thanks,

Julia

Thanks.  It is very attractive rate so I want to check out if it is real or not.

Yes, Julia I'm invested in about 10 of their notes (tot. of $1.2M).  I like this asset class so much, I even decided to join their staff last March.  I'm their client service rep.

Yes, it's very real (14% apr on min. $50K investment) but only through the end of this month. 

Yes, Julia.  I have a total of $1.2M in EBF notes and as  a licensed securities broker for 25 years, I felt so strongly about this specific asset class, I decided to join their staff in March, 2015.  The owners, Jerry & Shaun Cohen are devout, Godly men I would trust as much as any member of my own family.  What else would you like to know about note investing w/ EBF? 

Thanks for the info.  I invested my money else where now.

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@Julia Tse Julie, I work in finance. The only thing I can tell you about 12%+ returns on any assets that does not required you to put in sweat equity/time would be highly risky. There is no free lunch on Wall Street or anywhere in that matter. With the Fed Funds rate at all time low, even highly leveraged company bonds only yield ~5%. If someone offer you 12%+ return, the first question you should ask if HOW? Because their projects need to generate excess of 12% to compensate them and you for it. 

@Yin Choi

@Julia Tse

I think @Lindsay Hirsch 's post says a lot so I am not going to comment on this particular company.  But I also have spent the majority of my career in finance.  You are accurate that they need to spin off returns in excess of their expenses (including there cost of debt), but to make the comparison of a small company to a company that has registered bonds is a stretch.  You have to look at things in terms of scale.  Returning 5% on $100 million is very different than returning 20% on $100k.  The reason why these yields are so high is because large investors don't have the time to do the due dilligence on all these small companies.  It takes just as much time to place $1m as it is to place $10k.  No large investor is place 100 bets when they can place 1.

I think it was Buffet that said it is much harder to return 10% on $1b than returning 100% on $1m.  

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Thanks for info.  I got emails from them often so I want to check them out.  I did not invest in them.

I have now invested in a couple of properties and have been completely happy with the transaction process and the progress towards the returns. While they do seem high (my attorney and CPA were both concerned with the high estimated returns as well,) they are absolutely on track to produce as promised. Part of the reason for the ones I'm involved in is the fact that there are vouchers approved for guaranteed tenancy and another is when some of the multi-use properties have additional income streams (cell towers, laundry, etc.)

@John Hatfiled , MD What is your true relationship with Equitybuild? You are supposed to disclose your relationship before posting.

@John Hatfield, MD Can you give us some more details about your investments and your returns? Your prior post suggest you have just invested in the past couple of months and you do not have a true track record but your are "happy with the transaction process and the progress towards the returns". Thanks in advance for giving us more details.

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