As a new investor in NPNs, I’m having trouble deciding which source I should pursue when shopping for notes. I’m currently not trying to build a business, just invest my own funds. I’m looking to buy 1-2 notes a month. Here are my thoughts:

Small banks/credit unions - A lot of upfront work to build the relationship and I may not have enough volume to justify the effort.

Small hedge funds - My gut feeling is that by the time that tape gets to the individual investor, most of the “cream” has been skimmed off. That’s not the end of the world as long as I can review a decent number of tapes each month and look for the few notes that meet my criteria. Also, what are the reputable funds and how do I find them? Are good hedge fund lists available for $$?

Exchanges/individual investors - I see two big problems. You have no idea who the sellers are, and the notes have so much exposure that they’re probably over-priced.

I realize sources are a tightly guarded secret, but some general guidelines would be helpful.

I’d love to hear from some of the more experienced players out there.

Thanks!