Note Investing Success: My First Kicker

[Micki M.]

When I first found Biggerpockets.com I worked my way through the podcasts.  Episode 28 with @Dave Van Horn really sparked my interest in note investing.  I took the PPR online education and started researching. A year later I had saved up enough cash to buy a small second mortgage on a house near where my family lives in California.  I knew the area, felt confident of the property values and was willing to take the risk and buy the note.  After three years of collecting my small monthly payment, I just got a payoff request - the homeowner is refinancing!

I paid $22k for the note, valued at $55k.

For 3 years, I've been receiving payments equal to 13% return on my cash invested.

My payoff will be $54k due to a balloon payment on the loan. Combined with interest received, that's a total of 185% return cash on cash or roughly 60%/yr.

Thanks for the inspiration Dave!! Time to go buy another! 

PS Since a lot of people ask, I bought my note through LinkedIn's Distressed Second Mortgage Group

[Dave Van Horn]

Congratulations @Micki M.!!!! These are my favorite stories to hear. That's the beauty of kickers.

So glad our group on LinkedIn could be of help.

Best,

Dave