Guidance on becoming a Note investor

[Shawn Hughes]

I'm new around here. For the past several months I have been reading all I can get my hands, now I am reaching out for wisdom and guidance. For someone who is interested in walking the path of becoming the bank. What are ideas of getting guidance and learning the ins and outs of note investing. I am all ears for ideas and any tips that you all can supply would be greatly appreciated.

[Dion DePaoli]

In fairness to the boards I have reviewed Darren Eady's loans a couple months back.  They are mostly, if not all internal originations.  Meaning, they are loans made on investment properties they own.  That is what the industry calls an Arm's Length Loan.  Those loans carry more risk due to the internal nature of the loan being made on a property owned by the lender.  

In a conventional setting those loans would not be sellable on the secondary market due to the conflict of interest.  Most loan investors are weary of those types of deals and issues being buried in the loan due to the built in incentive the lender has with making the loan and then hopes of selling the loan to another investor.  

That said, the practice of Seller Financed loans is not uncommon lately.  Just understand as an investor what you are getting into.  As a newbie be weary of self promotion and walk slow through the minefields.  You are new and don't know what you don't know, so you can't judge or may not understand risks otherwise not seen by you.