My Experience with my First Note Fund

1 Reply

Investment Info:

Single-family residence note investment investment in New York.

Purchase price: $281,000
Cash invested: $281,000

Performing Note Pool Purchased November 2018 in a 506c Fund Structure.

What made you interested in investing in this type of deal?

1. The challenge of Raising Capital from Accredited Investors Only.
2. The ability to get significant discounts vs. doing one-off note deals.
3. The satisfaction of getting my investors paid.
4 Scale fast.

How did you find this deal and how did you negotiate it?

Double - Blind Negotiation. Ask me what I mean.

How did you finance this deal?

Private Investor Equity through a 506c structure.
Keep it Legal.

How did you add value to the deal?

No fees.
I make nothing until investors get over 9%.
Paid 1st year of taxes for all investors in the deal.

Pure transparency through financial reports - nothing to hide. Quick Books are open to all my investors.

What was the outcome?

Still going . .
Kicked out the first several dividends.

The model is working.

Lessons learned? Challenges?

It's hard to raise capital from accredited investors only - especially if you have NO track record.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Network.
Stop Pitching all over people.

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