Advice on getting started

[Evan Rattray]

Hello all.  I am about to launch my note investing business and have been running through my financial forecast scenarios.

I'm in a debate with myself of how I need to get started. I have an investor that has committed up to $500,000 to get the ball rolling.  Right now we have tentatively agreed to a 10% return over 20 years as his return.

I've been looking at Purchasing performing notes to generate monthly returns but once the initial investment is done the profits are only $1800 or so a month.  It's going to take a long time to generate enough cash to purchase another performing note. 

I had the debate of purchasing enough performing notes to pay the return to my investor and then spending the rest on non performing notes to generating potentially higher returns down the road.

I guess I'm curious how someone, that now has knowledge in the note investing industry, would proceed if they were given $500,000 to start over.

[Chris Seveney]

@Evan Rattray

You paying them interest only?

You are correct that if you’re paying 10% you will probably net 11-12% so you would make around 2% per year or 10,000.

That won’t get you far to buy non performing

Loans.

That is perfect world scenario if you got every penny invested.

If someone asked me to start over I would probably do some hard money deals first then save up for some NPL’s

It may take 3-4 years to get there though.