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Updated over 7 years ago on . Most recent reply

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172
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66
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Nathan Patterson
  • New to Real Estate
  • Castle Rock, CO
66
Votes |
172
Posts

Due Diligence on Performing Notes

Nathan Patterson
  • New to Real Estate
  • Castle Rock, CO
Posted

Hello BP,  

Alright so I am new to Note investing, I've been learning as much as I can before taking the plunge. But something I have noticed is that the majority of video's, blog posts, articles are about NPN investing. Because of that, it makes it difficult to really know what to look for in a performing note. So what I want to know, is for you seasoned investors out there, what are some metrics you look at while analyzing performing notes to know if it is a good investment or not. I'm talking about ROI, IRR, COC, NOI etc. Or is it more of a whole picture aspect and you look at the entirety of the potential deal not just a few things to let you know it is a good investment. I've gotten lost in the wealth of information out there on note investing and I'm not sure what to look at when it comes to analyzing performing notes.

Most Popular Reply

User Stats

167
Posts
216
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Gail Greenberg
  • Specialist
  • Melrose Park, PA
216
Votes |
167
Posts
Gail Greenberg
  • Specialist
  • Melrose Park, PA
Replied

I can't get into all the intricacies here but I would just say this: I question the idea that NPNs are more risky than PNs. NPNs are having problems now, but you have lots of financial room to solve them and still make a profit; with PNs you're putting more money at risk and are far more dependent on things going as expected with no surprises.  In notes as in life, I don't like to depend on everything going perfectly ;)

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