Opportunity to purchase a note

[David Soles]

Need someone to push me over the ledge here. Scenario: -168k note at 10% -20% down on the original purchase -Borrower can’t qualify for a confirming loan and the note is ballooning in 6 months. -Investor wants his $ to flIp another house Asap & doesnt want to go through the F/C process -Borrower willIng to go another 18 months I/O to figure things out @$1,400/M -200K Sale all day -1st PosItIon - No 2nd -FlorIda literally every penny I own. HELP! HaHa!

[Don Konipol]

@David Soles  Here are the things wrong with this investment

1. No diversification "everything I Own"

2. Residential O/O - compliance with SAFE Act, CFPB, state homestead laws

3. LTV way too high

4. No realistic exit strategy

5. Judicial foreclosure state

6. If you invest everything in purchasing note, how will you pay legal fees, taxes, etc if you have to foreclose?

7. The immediate market value of your investment will be less than you paid.

8. You will receive no capital gain for full payoff, which is a main purpose of buying an existing note, i.e. the discount.

9. Your getting a 'passive' rate of return for an investment you may have to be active in and has a higher risk than other 'passive note investments'.