Do note investors value contractors who bring their own cash?

Do note investors value contractors who bring their own cash?

Contractor · Western Springs, IL · Member since 2017 · 34 posts · 5 votes

Looking for suggestions or feedback from the Note Investor community. I have been in residential construction for the past 25 years and have done a handful of buy and hold deals in the last 10 years. Recently I've become very interested in the note space and I'd like to connect with some experienced note investors for the purpose of both the rehabbing after REO as well as wanting to have a go at the process of 1st or 2nd position note investing myself. I've done enough research and learning recently to bring myself to the point of wanting to put some money into this and get started with the right people but my question is this- Would Note Investors value a contractor who was willing to invest in projects with them, freeing up working capital for more note investments? Is this potentially motivation enough to some investors to then be willing to advise the contractor on his own pursuit of note investments? If the contractor was willing to share newly sourced tapes to bid on is that significant motivation to work together in some fashion? What else might the note investor seek from the contractor (beyond the obvious contractor professionalisms) that would be incentive to work toward each others mutual goals?

Thank you in advance for your thoughts and ideas!

Bob

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  • Kapolei, HI · Member since 2016 · 30 posts · 5 votes
    8y

    From your line of questions I assume you’re looking for a mentor to guide you in the note space. In that case you’d have to assess what that mentors wants or needs are and see where you fit. If that mentor is looking for a contractor to rehab post foreclosure then you’re in luck or maybe he/she’s just looking to partner with financing. You’d have to approach a potential mentor and ask them “how can I help you”. 

  • Contractor · Western Springs, IL · Member since 2017 · 34 posts · 5 votes
    8y

    Yep, that's pretty much the case. Mentor or JV. I'm just trying to confirm if its a waste of time to work with this approach or if there might actually be a need that some have. Or if others may say, "Hey, consider offering to..xyz"

  • Investor · Orlando, FL · Member since 2013 · 837 posts · 316 votes
    8y
    Originally posted by @Bob Jaeger:

    Yep, that's pretty much the case. Mentor or JV. I'm just trying to confirm if its a waste of time to work with this approach or if there might actually be a need that some have. Or if others may say, "Hey, consider offering to..xyz"

    Hello Bob, I think your approach and contractor skills have value to someone buying NPN notes in your local area. If you are wanting to approach note investors outside of your area then you might want to find or locate leads that fit their criteria. Most note investors pay attention and are ready to assist if you bring them a potential deal that fits their investing parameters.

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