Mortgage note companies to invest in

Tax Liens & Mortgage Notes
1yFollow

Mortgage note companies to invest in

John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 798 votes

I'm familiar with PPR and 7E Investments.  What others are out there I should be looking at.  LMK and thanks!

0Reply
37 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @Denise Supplee:

My business partner lent a private note to Ohio’s real estate investing couple. He was paid 10% interest every quarter since 2019. This worked out. However, he did have a relationship with them. 

Word to the wise, however: only lend a private note to investors you know personally and trust implicitly. Don’t lend money to anyone — even someone you know well — if they don’t have a long history of success in real estate investing.

If you desire to earn a higher rate of return like 
15-30%, you might want to consider investing with a real estate syndication. We have invested in notes in our investment club. And so far it has proven to be a positive experience. 


out of sheer curiosity how do these clubs work if you guys are investing in a loan. Do you do fractional interest in the debt instrument for club members that want to invest in a particular loan.. Or do you pool the money and make the loan in the name of the club.. then if your pooling money do you guys need some sort of SEC exemption and a PPM.. I see this club method coming up more but never really knew how you guys do it.  

I suspect this is a good way for locals who can meet then spread risk etc.. 
Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
4Reply
See this reply in the discussion

11 Replies

Jump to latestLatest
  • Mario Clemente
    Lender · Atlanta · Member since 2020 · 19 posts · 2 votes
    1y

    John - it will all depend on what you are looking for. Are you looking for short term notes or long term?  Are you looking for performing or non-performing?  Are you looking to invest in a fund or directly into notes?  Where are you looking to invest in the capital structure (common equity, preferred equity, debt). There are many firms which invest in notes/mortgages in different ways. I would start with what risk profile you are looking for for your investment and then perhaps ways to diversify away from the risk you are already taking (assuming you have already invested with the two firms you mentioned. I hope that has provided you with some food for thought. Happy to help if I can.
    Thanks,

     Mario

    1Reply
  • John M.
    OP
    Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 798 votes
    1y

    Looking at investing in a fund.  Shoot me your recommendations.

    0Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y
      Quote from @John M.:

      Looking at investing in a fund.  Shoot me your recommendations.

       @Jamie Bateman has a fund with min. 12 month hold. (note: I know Jamie personally as well as have invested with him)

      Aspen Funds is another with a good reputation.

      I can name a few that I would absolutely avoid.

      7e investments53 Reviews
      WebsiteView Page
      1Reply
    • Jamie Bateman
      Investor · Baltimore County, MD · Member since 2014 · 466 posts · 439 votes
      1y
      Quote from @Chris Seveney:
      Quote from @John M.:

      Looking at investing in a fund.  Shoot me your recommendations.

       @Jamie Bateman has a fund with min. 12 month hold. (note: I know Jamie personally as well as have invested with him)

      Aspen Funds is another with a good reputation.

      I can name a few that I would absolutely avoid.

       @John M. feel free to reach out with questions!

      0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    1y
    Quote from @John M.:

    I'm familiar with PPR and 7E Investments.  What others are out there I should be looking at.  LMK and thanks!

    First determine if you qualify as an accredited investor.  If not, your options are more limited.
    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    1Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 974 posts · 641 votes
    1y

    My business partner lent a private note to Ohio’s real estate investing couple. He was paid 10% interest every quarter since 2019. This worked out. However, he did have a relationship with them. 

    Word to the wise, however: only lend a private note to investors you know personally and trust implicitly. Don’t lend money to anyone — even someone you know well — if they don’t have a long history of success in real estate investing.

    If you desire to earn a higher rate of return like 
    15-30%, you might want to consider investing with a real estate syndication. We have invested in notes in our investment club. And so far it has proven to be a positive experience. 

    Spark Rental Co-Investing Club577 Reviews
    WebsiteView Page
    0Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y

      @Denise Supplee you are not getting 15-30% in a note fund - anyone who pitches that amount run - just look up norada or drive planning who promised those types of returns. 

      7e investments53 Reviews
      WebsiteView Page
      1Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Denise Supplee:

      My business partner lent a private note to Ohio’s real estate investing couple. He was paid 10% interest every quarter since 2019. This worked out. However, he did have a relationship with them. 

      Word to the wise, however: only lend a private note to investors you know personally and trust implicitly. Don’t lend money to anyone — even someone you know well — if they don’t have a long history of success in real estate investing.

      If you desire to earn a higher rate of return like 
      15-30%, you might want to consider investing with a real estate syndication. We have invested in notes in our investment club. And so far it has proven to be a positive experience. 


      out of sheer curiosity how do these clubs work if you guys are investing in a loan. Do you do fractional interest in the debt instrument for club members that want to invest in a particular loan.. Or do you pool the money and make the loan in the name of the club.. then if your pooling money do you guys need some sort of SEC exemption and a PPM.. I see this club method coming up more but never really knew how you guys do it.  

      I suspect this is a good way for locals who can meet then spread risk etc.. 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      4Reply
    • Denise SuppleeBusiness Member
      Realtor · Willow Grove, PA · Member since 2017 · 974 posts · 641 votes
      1y
      Quote from @Jay Hinrichs:
      Quote from @Denise Supplee:

      My business partner lent a private note to Ohio’s real estate investing couple. He was paid 10% interest every quarter since 2019. This worked out. However, he did have a relationship with them. 

      Word to the wise, however: only lend a private note to investors you know personally and trust implicitly. Don’t lend money to anyone — even someone you know well — if they don’t have a long history of success in real estate investing.

      If you desire to earn a higher rate of return like 
      15-30%, you might want to consider investing with a real estate syndication. We have invested in notes in our investment club. And so far it has proven to be a positive experience. 


      out of sheer curiosity how do these clubs work if you guys are investing in a loan. Do you do fractional interest in the debt instrument for club members that want to invest in a particular loan.. Or do you pool the money and make the loan in the name of the club.. then if your pooling money do you guys need some sort of SEC exemption and a PPM.. I see this club method coming up more but never really knew how you guys do it.  

      I suspect this is a good way for locals who can meet then spread risk etc.. 

      Every month, our investment club jumps on a video call to discuss and vet a passive real estate investment together. We look at various opportunties includling including private partnerships, private notes, real estate syndications, real estate equity funds, and secured debt funds.

      Each month a new LLC is opened and any of the club members may or may not opt-in to participate in that particular offering. We created it this way so that any club member can invest with as little as $5,000 (or more if you want). Compare that to the $50,000 – $100,000 you’d otherwise need for passive real estate investments or a down payment and closing costs to buy a property yourself. All deals are optional — skip any you don’t love. Oh, and we vet each opportunity together at a meeting where we can hear about the deal and ask questions. Hope that helps, feel free to reach out if you have any more questions! Have a great week!

      Spark Rental Co-Investing Club577 Reviews
      WebsiteView Page
      0Reply
    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      1y
      Quote from @Denise Supplee:
      Quote from @Jay Hinrichs:
      Quote from @Denise Supplee:

      My business partner lent a private note to Ohio’s real estate investing couple. He was paid 10% interest every quarter since 2019. This worked out. However, he did have a relationship with them. 

      Word to the wise, however: only lend a private note to investors you know personally and trust implicitly. Don’t lend money to anyone — even someone you know well — if they don’t have a long history of success in real estate investing.

      If you desire to earn a higher rate of return like 
      15-30%, you might want to consider investing with a real estate syndication. We have invested in notes in our investment club. And so far it has proven to be a positive experience. 


      out of sheer curiosity how do these clubs work if you guys are investing in a loan. Do you do fractional interest in the debt instrument for club members that want to invest in a particular loan.. Or do you pool the money and make the loan in the name of the club.. then if your pooling money do you guys need some sort of SEC exemption and a PPM.. I see this club method coming up more but never really knew how you guys do it.  

      I suspect this is a good way for locals who can meet then spread risk etc.. 

      Every month, our investment club jumps on a video call to discuss and vet a passive real estate investment together. We look at various opportunties includling including private partnerships, private notes, real estate syndications, real estate equity funds, and secured debt funds.

      Each month a new LLC is opened and any of the club members may or may not opt-in to participate in that particular offering. We created it this way so that any club member can invest with as little as $5,000 (or more if you want). Compare that to the $50,000 – $100,000 you’d otherwise need for passive real estate investments or a down payment and closing costs to buy a property yourself. All deals are optional — skip any you don’t love. Oh, and we vet each opportunity together at a meeting where we can hear about the deal and ask questions. Hope that helps, feel free to reach out if you have any more questions! Have a great week!


      thank you.. so no government over site on set up and execution then ?  Any one take a fee for managing this etc etc. Again just curious. Seems like a great way for investors to dip their toes.. 

      I did a version of this when I was buying courthouse steps properties in Vancouver Wa.  there was about 10 of us.. with myself and one other as the major money the other 8 could participate. The other major money he followed all the sales and did the bidding.. Vesting would be in the LLC that we were all members of so
      Not a new one every time.. so in that LLC you had capital accounts and allocation if you put money in for a bid and won you then got that % ownership in that one asset.  This all arose after the other major player and I were knocking each out in the heads competing against each other and we just figured better to join forces and get the properties for lower bids. Plus we had massive cash avalialbe each and every Friday so if we wanted a deal our LLC got it.. 
      Now keep in mind we are talking a lot different numbers the other major guy and I had usually 1mil in the kitty and the other smaller folks 100 to 200k each. 
      Podcast Guest on Show #222
      JLH Capital Partners51 Review
      WebsiteView Page
      1Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 974 posts · 641 votes
    1y

    Wow, that is interesting. We are careful to remain in compliance with all rules and regs. Our number one goal is to allow all to be able to invest. 

    Spark Rental Co-Investing Club577 Reviews
    WebsiteView Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free