What do you expect to see from Note Investing in the next year?

[David Putz]

Being a note investor for over 10 years and starting at large fund I always saw large tapes.  When I broke off in 2012 and started buying personally, I hoped never to see the day of tapes of less than 300-500 would never end.  I have seen many new investors enter (and exit) in this time but I have also made some great friends along the way.  I am curious with things being up-in-the-air where others see this investment space moving to.  We had a webinar recently that talked about this and will have one tomorrow so I was wondering from this social media where others see things in a year from now.

[Chris Seveney]

@Dan Deppen

I believe opportunity in 2021 is directly correlated to your relationships. For a new note investor, looking to by 1-10 notes per year I believe there is plenty of inventory readily available to them. I think the challenge with this group of investors is they are taught from some guru who makes it sound like buying notes is the equivalent of going to the grocery store and picking an ice cream flavor (readily abundant and cheap).

For those who have been around, I would recommend speaking to people you buy from now and see what their plans are for liquidating. It’s interesting as several I talk with have not bought a lot over the past few years and have been downsizing their portfolio so they don’t have a lot of assets to sell. They also are not in a rapid buying mode as many moved to some other investment strategies. If they start buying more it would lead to more opportunities down the road but it could be a few years.

I go back to relationships though as it’s key to have strong relationships with few versus week relationships with many. Due to my relationships I have Never had issues with inventory and I can say I didn’t travel around the world chasing people to build them / it’s done through a phone call, specific asset type acquisition and doing what you say you will do over and over.