Full Time or Part Time RE Investor? What is your Business Model?

Question

I'm a Full Time Real Estate Note Investor. 15 years in Real Estate, the last 10 years Full Time.

I fully concentrate on Institutional Residential Re-Performing (RP) & Non-Performing (NP) 2nd Mortgages. I have 3 Companies.

People's Mortgage Relief II, LLC (PMR II) is my Asset Management Company. It manages other Note Investors Non-Performing 2nds. This company has managed well over 1,000 NP 2nds over the last 10 years. PMR II doesn't own anything and it doesn't have any debt. It gets paid on service fees and commissions, based on what it collects. PMR II is taxed as an S Corp. My whole world runs through my S Corp. PMR II also offers Consultant Work for other Note Investors.

Peoples Debt Relief Solutions, LLC (PDRS) is my own Note Portfolio. It owns RP & NP 2nds. I also have private Investors. I've been building my Portfolio for about 15 years now.

Note Fortunes, LLC is my Education Program. It's a 2nd Mortgage Note Business Education Program. This is my latest venture. I launched this about 2 years ago.

I also do this stuff in my SDIRAs & my HSA.

Robert Hytha · Answer

When I got the notification that Bill had made a post I knew I had to check it out - he is the real deal. I've known Bill for almost 10 years now - what a great resource in this industry!As for myself, I am a Full Time Rental & Note Investor. Most of my portfolio is rental properties, including a quadplex coin operated laundromat, several SFRs and many garage units. I have a geographically concentrated portfolio that I manage along with my wife Katharine.On the note investing side, I own RPLs in my SDIRA and buy the occasional NPL. I would buy more 2nd position NPLs but rarely have the opportunity (in order to avoid adverse selection with my Trade Desk clients). All of the NPL sales opportunities I have access to go to the Trade Desk & Mastermind group first.My primary full-time focus is on my company FIXnotes. Along with the Trade Desk, we offer a comprehensive free online course (How to Invest in Mortgage Notes), a regularly scheduled live industry show on YouTube (29+ hours of free video content) and a private Mastermind group (35+ members with a combined AUM of $100MM+).FIXnotes business model consists of distressed debt consulting & portfolio management (250 NPL total active portfolio max) but so far in 2021 much more of my time is focused on creating value in the Mortgage Note Mastermind. We are building a State & County specific database for mortgage note related specifications nationwide, vendor rolodex, document template repository, over 50 case-studies, forums, a market-wide aggregated trade desk and more. Personally, my investment business model is buy & hold, leveraging historically low interest rates. I started in the notes business as an intern in 2010 & bought my first rental property in 2013 (long before I moved out of my parent's garage)

Tracy Z. Rewey · Answer

Started in the note investing business in 1988 working as an employee for another company. Went out on my own and started Diversified Investment Services, Inc., an S corp, with my husband in 1997. Bought my first note personally in a self-directed IRA that same year. Have owned a few SFR rentals over the years but much prefer note income. We buy and hold some notes long term and refer others to investors for more immediate income. Note investing is our primary business but we have added other business models over the years as they make sense.

Bob Kessing · Answer

Part time real estate and notes investor. Bought my first investment property in 1992 and first note in 2015.Set up Trustworthy Funding, LLC in August of 2019 for investment or referral of any type of real estate note, PN or NPN, 1st or 2nd lien. Still invest in property as well and enjoy a diversified, self-employed lifestyle that includes part time software sales.

Ned Carey · Answer

I am a full time investor for that last 15 years. I have done about every strategy at least once. Today I wholesale and own some rentals. My funnel for deals is buying tax liens. Tax liens have been the heart of my business. However tax liens have become so competitive my focus is changing to more rentals.

Chris Seveney · Answer

Full time W2 in real estate development and construction which has led me to gain knowledge to grow my note business. I work 20+ hours per week on my note business which focuses on performing and non performing 1st position liens. We invest in 35 states (goal to invest in all 50).We started the traditional path of using our own funds, then did some JV deals and now run everything through funds. Our business model moving forward includes running assets through two funds, a non performing fund with preferred return and excess distributions and a performing fund with a preferred return. We have a few other things planned besides our funds. We also provide mentoring for new note investors who are looking for someone more experienced looking over there shoulder and this year we are also launching a membership site along with a few other things.

Andy Mirza · Answer

Full time Note investor.Our management company is Coastline Capital Fund Management, LLC, which is the managing member and sponsor of all of our Funds.Our Funds are set up as LLCs, where the investors are Preferred Members. Each Fund owns a pool of NPNs/Converted REOs that is separate from the assets of the other Funds.Our Funds are focused on liquidation of first position loans. We don't have any 2nds, which involves a completely different business model. We like to focus on our strengths and stick to what we're best at.

Jamie Bateman · Answer

I work 2 days per week now at my 9 to 5, and 6 or 7 days per week at real estate and notes. We have 2 LLCs for our rentals (currently 8 SFRs and growing) and 2 LLCs for our notes. And we have plans in motion for scaling our notes businesses this year and beyond.

Bill McCafferty · Answer

@Robert Hytha Thanks for the kind words. Back at you Brother. Rob is also the real deal.