Opinion on Performing Notes in My Area

[Nate Crump]

There is a guy/company selling notes in my area. Obviously due diligence will need to be performed, but I wanted to see what some of you pros thought, on the surface:

1. The performing notes were all originated, has been doing it for 25 years. These are NOT primary residences (my first concern). These are recreational properties, one county over from me in a popular area for those activities. This company basically had huge chunks of land, and has been selling it off in 1-10 acre parcels, and putting up small cabin-like structures on them for hunting/fishing.

2. They are 1st position notes, and range from 15k to 75k. All performing.

3. He discounts UP TO 10%, so that makes me believe some are discounted less than that, and maybe on some not at all.

4. Usually 12% interest rate, but few will vary. He also says the yield can be up to 20%, but unless I'm confused I don't see how with a 12% interest rate, even if the note is discounted 10% from the remaining balance, how the yield can be as high as 20%???

Anyway, that's the very basic information behind them, just want to see what people thought. I found them while actually looking around at some of this very recreational property myself. Thanks.