Feedback on Connect Invest Short Term Notes Passive Investment

[Michael Johnston]

Hello Everyone,

Looking for feedback on those that have invested on the Connect Invest Short Term Notes Platform https://landing.connectinvest.com/biggerpockets

If you have invested can you please tell me your experience

Appreciate it

Michael Johnston

[Jay Hinrichs]

Quote from @Eric Gerakos:

Michael, why would you invest in UNSECURED note funds when you can buy notes SECURED by real estate that are currently paying 10% for 2 or 3 year interest only terms? I don’t sell anything on BP. I’m just an investor.

Eric,, I think why people go for the fund model is the idea that they are spreading their money into multiple notes being held by the company.. while in theory this is great but as you noted you don't really have any security compared to being the beneficiary of the debt instrument IE debt is in your name.  In Ca many loans are done through fractionalization method which is not that common in other states and illegal in some. CA also in the last 30 years really beefed up the protection for fractional TD investors. One just needs to look at the Peer st. BK to understand the risks of investing in a fund that craters.. At least with Whole notes worse case is you own the asset so just have to make sure you like the assets being used as collateral.