Area Population and Note purchasing

[Peter Halliday]

I’m wondering whether note investors factor in the population of an area. Why or why not? It seems to me that population is a big risk. There’s a bunch of paper on some sites from places with just a few thousand people. Mostly places like that would be difficult to sell, and difficult to find professionals in aid think.

[Dan Deppen]

I always look at the population of the city. I have a huge lookup table with 60,000+ cities to make it easy. My threshold varies from deal to deal. For example, if it's a note where there is a good chance I will end up with the property then I want it to be in a much more populated area where there will be a lot of vendors to work with. But if it's a solidly performing loan then I'm ok with going into smaller towns. The other thing I look at it is not just the population, but the proximity to the closest major metro area, I have that in my lookup table as well. There are some <5000 population towns that are basically suburbs of large cities.