How to use OPM for performing notes.

[Mike Carr]

I have been looking at performing notes recently for cash flow purposes.  Wanted to know if anyone has structured deals to take down pools of performing notes using other peoples money. The reason I ask is because I have heard of someone who uses OPM to purchase performing 2nd's and is making great money. I never got the name of the person so I can't ask for myself.

Example of a 1st position performing note.

Purchase: $10,000.  Monthly payment is 582.46 with 20 payments left. 

If I purchase this asset with my own cash than I would be looking at 18% yield.

In order to scale this up I would like to bring on investors and give them a 10% return in order to fund the project 100%.

However, this brings their monthly payments to 544.90 which leaves 37.56 for me....this does not even include servicing fees or due diligence fees. 

I want to be in the deal from the front end to the back end...I don't want to sell a front end partial to recoup my money and wait months/years to get passive income. 

Any help would be appreciated.