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Investing in Norada Funding's notes
Has anyone in the BP community dealt with Norada funding? This is a sister company of Norada Real Estate. They're opening up some investment opportunities for 24 months. Rates are pretty high (12-15% with an additional 5% of the loan paid at maturity). The minimum investment is 50K.
Well, at that high an interest rate, the risk is rather large. Any way you can ask about diversification of your funds?
@Steve Morris Thanks for responding. I was thinking the same thing (diversification). I've also looked into Norris Group with their trust deeds. Their LTV is 70% max and they offer a 6 percent return for the investor (non pooled funds).
@Steve Morris are you assuming the risk is high based on the reward? Or are you familiar with Norada’s offerings?
Originally posted by @Julian Buick:@Steve Morris are you assuming the risk is high based on the reward? Or are you familiar with Norada’s offerings?
Making a gross characterization. In general,the higher the rate of return, the greater the risk. Look at T-bills vs hard money loans for extremes in rates and risk factors.
@Chris Yeung @Julian Buick @Steve Morris
Good morning gentleman.
Just to provide clarity in this post, there are three (3) separate companies:
1) Norada Real Estate Investments
2) Norada Real Estate Funding
3) Norada Capital Management
The Promissory Notes you're referring to belong to Norada Capital Management. These are not specifically real estate related. They are business notes backed by our portfolio of 10+ businesses which does include some real estate.
The note returns range based on investment but is double-digit. There are also bonus rates for larger investments. Interest payments are paid monthly, and Note lengths are currently 2- or 3-year terms.
Note that you must be an accredited investor as defined by the SEC.
Please let me know if you have any questions.
Continued success!
@Marco Santarelli
Have you invested yourself in the Norada Capital Management notes? If so, what success or loss have you had with in since Covid19? Are there other notes you feel perform better than these?
@marco Santarelli
I looked up the Norada Funding and see you are the owner of this company so that last post I made is irrelevant. Sorry about that. I can go to your site and check it out.
@Nicole W. -- no worries Nicole! I was wondering about your first post. :-)
Feel free to reach out to me directly if you have any questions. We're limited in what we can post in the BP forums and on our website because of regulations and NDA agreements.
Continued success!
Thanks for the clarification. Any exceptions to the 50K minimum? I have 30K that I can invest with that's in a SDIRA.
Hey @Chris Yeung -- I really wish I could say "yes" but our SEC filing has a $50k minimum at this point.
Sorry, my friend! :-\
@Chris Yeung. I invested in a fund with Norada and everything is legit. Interest payments hit my account as expected. Marco is great to work with and will answer all your questions. I had plenty questions when I was determining if I wanted to send him my money, and I was able to talk with him directly very easily. Also, check out his podcast...one of the few I have continued to listen to over the years and stays current with good content.
Good Morning - I have invested in the Promissory Notes as well. Before doing so I spent hours on the phone with Marco discussing the loans, use of funds, risks, management teams...I also spent time researching Marco and Norada. I have received wires for interest payments on my loans every month. I have a lot of respect for Marco as I find him to be extremely thoughtful, intelligent and a tremendous resource for Real Estate Investing and investing in general.
Thanks for the feedback. It's good to know you had good experiences.
@Andrew Smith @Darin L. Really appreciate the feedback about your experiences with the promissory notes. We had just listened to a podcast with Marco from Norada as the guest (Passive Wealth Strategies for Busy Professionals: Demystifying Turnkey Real Estate Investing) and were reviewing the information about the notes on their site. Certainly there's risk that needs to be assessed but thanks for sharing!
@Marco Santarelli it's a real bummer that one has to be an accredited investor for all these opportunities I see. Not everyone meets that criteria but there are lots of us investors that are experienced investors with 6 figures to invest who are close to 'accredited' status. :(
Hi @Deb S.-- I completely agree with you!
Unfortunately it’s an SEC requirement to be accredited for an investment filed under Rule 506(c) — which this investment is. (So it’s their rule, not ours.)
If you know you’re close then maybe contact me directly and I can tell you what some other investors were able to do to be able to invest.
Continued Success!
How do I get in touch with you for some clarifications. Please DM me your contact details.
it's been about a year now of offering these notes. have you guys put together any SEC-required financial results for these? if yes, where may one review those?
also, to those who have invested in these notes, please update the thread on your experience(s) these many months on now. thx!
i have up to 50k dry powder that i'm currently evaluating various ST instruments to invest in. thx.
@Ad Prad — I’ll send you a DM with my contact information.
Continued success!
Originally posted by @Tommy G.:
it's been about a year now of offering these notes. have you guys put together any SEC-required financial results for these? if yes, where may one review those?
also, to those who have invested in these notes, please update the thread on your experience(s) these many months on now. thx!
i have up to 50k dry powder that i'm currently evaluating various ST instruments to invest in. thx.
still hoping for some replies to my inquiry above. @marco santarelli, how about a reply here, please.
Hi @Tommy G. -- Sorry for the delay. I didn't see your original post.
This offering is a Regulation D, Rule 506(c) filing. I can share that filing with you via email. Private placements under Reg D do not have any required financial reporting requirements.
We can provide you with some current active investors for feedback if you don't get any replies here. :-)
Feel free to reach out to me directly with any questions.
Continued success!
@Andrew Smith are you still currently invested in the notes with Norada Capital? If so, is everything still going well and would you recommend?
I, too, am interested in investing with their promissory note option. However, it seems extremely high risk as, to my knowledge, it is unsecured and only backed by a 'promise' to repay not any hard assets or relevant collateral.
Quote from @Michael Fish:
I, too, am interested in investing with their promissory note option. However, it seems extremely high risk as, to my knowledge, it is unsecured and only backed by a 'promise' to repay not any hard assets or relevant collateral.