Are Notes/HML the right approach for me?

[Vik C.]

Hi all,

My "real estate goal" is very straightforward - I am looking for an approach that can yield a 6%+ annual return with as little active work and time as possible, after a learning period (of up to 5 years).

By 6%+, I mean risk-adjusted, not nominal. I also prefer stable income streams rather than volatility, otherwise I would have just stuck with equities. I am not looking to maximize my returns or strike it big. Just looking for a nice income stream business that I can run on 5-10 hours a week or less and ideally remotely. These qualifications are what led me to thinking about notes/HML as opposed to hands-on flipping or even landlording, which take up more time, stress, and hands-on activity.

I am also looking for an approach that can be successfully executed with less than $500K starting capital. Not sure if that is too low for notes or HML given the lack of diversification. One thing I learned from my finance days is that it is all about dversification and spreading your credit risk amongst as many uncorrelated counterparties as possible.

So with the above said, is note investing and/or HML something that could meet my return and time commitment goals? Am I barking up the wrong tree?

Thanks