How I got started in note investing

[Chris Seveney]

Today I want to share when I acquired my first mortgage notes. It was November 2016 when I decided to pull the trigger after six months of research and building an excel model that lets just say I went overboard with. So how much did this cost me to get involved besides an awful lot of time?

I started with four loans. They were in the amounts of $6,184; $3,100, $3,800. $3,418 = $16,502. I figured I would invest in real world experience instead of paying a guru $20,000 to teach me what I could learn online. Throw in costs for setting up entity and other stuff and call it an even $20k.

These loans were not easy to manage but I wanted to spread my risk across four assets. Two of these assets were in bankruptcy, one was a performing loan and the other was a non performing loan. We ended up resolving all and getting paid off on these four assets. 

Fast forward to today where we have managed over 700 assets. It has not been easy, but if it was, then anyone could be doing it. I share this for two reasons:

1. Start with a plan. While you need money you do not need a ton of it. Also make sure you do diversify.

2. I see far too many people rushing to get out ahead. I started when I was 41 in note investing. I did not make any money really the first several years because I reinvested it. Those reinvests did payoff, but be patient. Real estate is a marathon not a sprint. For many you are running full speed into a storm that you are not looking ahead at the clouds and unfortunately for those its not going to end well. 

Patience and discipline, and no you do not need to keep up with the jones'.