Want into Notes Investing

[Satinderpal Rai]

What are best sources for notes investing

[Don Konipol]

@Satinderpal Rai

There are a lot of real estate related fields, where jobs in those fields can be successfully accomplished by people with a moderate degree of knowledge and good salesmanship skills, such as residential real estate agent for homebuyers, leasing agent for apartment buildings, etc. The note investment field is NOT one of these. I know of few other fields where extensive deep knowledge of the subject area, vast experience, and specific analytical ability as well as negotiating skill is so deeply rewarded, and where the lack of above is frustratingly punished.

A person with Capital to invest should educate themselves on the basics of real property, secured debt, especially the legal aspects and implications. Once they’ve accumulated as sufficient basic knowledge and understanding, they should engage the services of a professional with a verifiable track record to build a portfolio of notes either individually, or through a note fund. And btw, just investing through a debt crowdfunding site is no guarantee of successful returns; many of these operations are run by tech guys hiring lightweights in the real estate field with limited experience to run the investing operations. I’ve done consulting work for one of the bigger crowd funding portals, ( I will not mention which) that wanted to get into commercial mortgage notes. The lack of experience and expertise of their investment personnel was frightening,; they paid me a large sum, and then chose to ignore my advice and invest in a low quality deal because they were under pressure to invest the capital they had. Of course the end result was default within 6 months.

During a “bull” market, even unwise investments can look good. When examining a track record, I want to see how the investor fared during a recession.