All Forum Posts by: Steve Hodgdon

@Bee Snider Welcome! There is an amazing amount of info here on BP. Most of it free. @Dion DePaoli helped me construct a portfolio of 30 performing mortgages. Not all of them stay that way! So be prepared to do some work along the way! Follow @Jay Hinrichs and other experienced people here. 

I do both individual and REIT style fund investing. Track record of the fund is key for me. I've been disappointed with new limited partnerships compared to larger more experienced funds. But still can get caught in a Madoff style scheme. A fund may not start off as a Ponzi scheme but when the market turns...

This pool is too big for me to take down by myself. The syndicator/broker will be analyzing the portfolio and answering questions. This is a great opportunity for people looking to learn how to analyze note purchases. I'm not representing the seller. I would be one of the buyers. There is no syndication set up. This is strictly EDUCATIONAL. You can contact the broker after the presentation to discuss. 

In December 2006 I bought a small shopping center with 65% LTV and a $2.7 million dollar loan. I was not overleveraged. In March of 2008, the center was 80% economically vacant and only worth $2.5. All my equity evaporated. Could it happen again? End of story is I hung on for 8 years, feeding the property instead of getting income. Eventually the path of progress reached me and we exited up $1 million in 2016. Worked out to annualized 7% ROI.

Chris' podcast is a good place to see his character compared to "gurus" in this space. He tells the good AND the bad. Counter party risk is as important as the asset you're buying. Run public record checks (beyond Google) on anyone you deal with. Ask for examples of deals and then go look at county records to see if they're on title. I like Chris, he's honest and knows his stuff. And I've met some of the sharks along the way, so be careful. You don't need a lot of partners. I keep going back to the few I trust. 

There's lots of great free advice out there. But sometimes experts have conflicting opinions. KKOS and Anderson Business Advisors have lots of webinars, articles, podcasts. Listen to licensed tax professionals who have strong real estate experience.

@John Underwood Thanks for asking. I should update that thread. Tenant/owner, it's a CFD, pays 10 out of 12 on time. I pay taxes because he struggles. So I add to balance. Mistake was not writing mortgage. So can't homestead house. Tax bill chews up 4 payments so owner never gets principal paid down. House has appreciated like everything else. But a boring ROI

@Whitney Ortiz Hi - Fellow Californian. Stopped investing here (missed the COVID run up, oh well). BUT have done 10 projects of various kinds in the Pensacola area. Biggest surprise Real Estate Taxes are high for rental owners. We've been happy with our returns and quality of contractors and tenants.

Liberty Title in Merrillville

As I write another seller finance deal, I wonder "why?". Oh yeah, remote rental management has it's own set of issues. Pivoted away from notes full time to focus on growth again. Cashflow better than rentals, but the last run up has been good on rentals.