Notes with very low risk

[Stanley Lo]

Who do you recommend for Note Fund investment?  I'm an accredited investor thinking of parking 50-100K for 6-12 months.  I'm looking for higher yield alternatives to CD with very low risk.  I've looked into PPR, Marshall Reddick, GroundFloor, Alpine, and 7e.  Most funds have not been through the 2008 cycle.  How do I know that my money will be well taken care of?  (ie to not lose value and not be held beyond maturity date)  Any ideas?   

[Chris Seveney]

Quote from @Stanley Lo:

Who do you recommend for Note Fund investment?  I'm an accredited investor thinking of parking 50-100K for 6-12 months.  I'm looking for higher yield alternatives to CD with very low risk.  I've looked into PPR, Marshall Reddick, GroundFloor, Alpine, and 7e.  Most funds have not been through the 2008 cycle.  How do I know that my money will be well taken care of?  (ie to not lose value and not be held beyond maturity date)  Any ideas?   

 The best way to learn how your money is being taken care of is by doing your due diligence on the company and the sponsor. For example, google the company name and add the word "scam" at the end of it. Your list of 5 would be down to 4 very quickly. 

From there, review the sponsors and who you are most comfortable with. I would make sure you understand their offering, what they invest in, what is the business model and also what are you considered. For example a lot of investors in Peer Street (who did originates and owned notes) thought they were owning a part of that secured note. Well, reading the fine print they were unsecured debt is what they were considered.

Also, reason why most note funds were not around in 2008 is because everyone who ran a note fund around that time frame is on a beach somewhere with millions of dollars in their pockets because of how lucrative the business was back then.Oh and if someone tells you it is just as lucrative, they are lying.