Tax Liens & Mortgage Notes
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago,
Deed trust vs note fund
Good evening everyone!
So, I want to get people input on investing in deed trust notes vs note funds.
By deed trust notes, I mean you can find companies that issue shorter term loans, basically hard money, who then turn around and sell the note to that loan backed by the real estate. Usually it’s for ~3 years or less, most will offer between 9-12% on that note. Usually interest only payments with balloon at the end for the initial investment amount.
Versus a note fund, which will have a minimum investment, say $10k, give a return of 12%, and then after three years you are given all your initial principal back. Ie PPRnote fund.
Thanks
Dave