All Forum Posts by: Bill Griesmer

Hi Shellond, Jay give some good options above.  To expand, I would recommend starting by giving some serious thought to your goals and situation. Otherwise you will spin your wheels. How much time do you have to do note investing? Are you after active or passive income? Do you need to make money right away or can you possibly wait a while? Do you have money to invest or do you have to raise money? Do you know how to run a business? Answering these questions is important as it will help you make decisions. For example, if you want simple basic cash flow, buying a performing note may be a good place to start. Another example: If you need to make money from notes immediately, you may not want a non-performing note as it can potentially take some time before you make money if you have to foreclose. There is a lot to learn about notes. Start by assessing your goals and situation and then branch out from there. Let me know if you have other questions and Good luck!

You don't necessarily need a lot of money to invest in notes. I bought a performing note for just over $4K when I was getting started. You could also try to arrange a "swap" of some sort with an experienced investor wherein you learn investing and provide some other service. If you do invest in notes however I would recommend having at least some financial reserves in case things go badly. You may also consider working a "regular" job while learning and saving. I would also suggest volunteering with your local REIA to expand your network and meet other investors. Good luck!

I agree with what Chris said above.  You might benefit from doing a Joint Venture with an experienced investor.  But I suggest you give some serious thought to your goals and situation.  Otherwise you will spin your wheels.  How much time do you have to do note investing?  Are you after active or passive income?  Do you need to make money right away or can you possibly wait a while?  Do you have money to invest or do you have to raise money?  Do you know how to run a business?  Answering these questions is important as it will help you make decisions.  For example, if you want simple basic cash flow, buying a performing note may be a good place to start.  Another example: If you need to make money from notes immediately, you may not want a non-performing note as it can potentially take some time before you make money if you have to foreclose.  There is a lot to learn about notes.  Start by assessing your goals and situation and then branch out from there.  Good luck!

Really good thread with many good replies.  I'll just add the very practical feedback that full- vs. part-time depends on many factors that only YOU (Shiloh the original poster or anyone else) can answer.  Some new entrepreneurs can not handle all the freedom.  Will you be disciplined to get things done each day if you don't have a boss asking for your work?  Do you have your own money to invest from the start or do you have to raise other's money to get started?  If you use your own money, will you have any left in reserve if something goes wrong?  Do you know how to run a business?  How much debt do you have to pay every month?  Can you decrease your debt or live more cheaply if need be?  If you have a family, will they be OK with that?  Do you like your day job? Are you able to do RE on the side effectively?  These are just some practical questions in addition to the wise "temperament and personality" issues mentioned above.  Good luck!

Chad provided a lot of great information above.  I'd add just a few things:

Checking HOA fees is especially important for assets in HOA "Superlien" states. Let me know if you need a list.

When checking the tax status, ask WHO paid the taxes.  This can help you learn if a tax lien or tax deed was sold.

Check with the county to see if the house has any code enforcement issues.  This is especially important when looking at CFDs as you own the house.

And I agree with Chad that education or a JV is a great place to start. Best wishes to you!

Hi Tyree,

I commend you for thinking of your long-term goals. This will influence your business decisions. For example, if you own a CFD, you actually own the property itself. That means you or your company is responsible for payment of taxes and insurance. It also means you can be cited for code violations. Some cities or counties will also treat you as a landlord and you are subject to those laws as well. All these things make owning a CFD more "active" than owning a "full" note and mortgage. Regardless of this, you must "manage the servicer" of the note as well as complete all business administration tasks as Chris noted above. I also estimate you spend more time on finding deals when you are starting out. I also agree with Chad that you'll learn more about the note business from a JV than you would with a fund though I'd add you could also possibly earn a higher return. Hope that helps!

Performing notes can still be a good investment, especially given todays still-low interest rates.  Like Adam and Dan posted above, prices can be expensive depending on the source.  Some online exchanges to start with are Watermark, Granite, FCI and Automation Finance.  When you evaluate a performing note, pay special attention to the pay history.  If you buy a performing note and the borrower stops paying, the resolution process becomes longer and more expensive and you could potentially lose money.

#notecamp #scottcarson #chasethompson #weclosenotes

Today NoteC.A.M.P. 3.0 rolled through Day 3. Scott Carson led off the morning with a call for action. Carson noted how note investing at some level is a numbers game and you may have to submit multiple bids to get one that will close. At the same time, its important for note investors to have a team and realize they don’t have to do everything. Carson also had this nugget: the perfect deal does not exist! This really hit home for me. Scott is a very heartfelt coach who strikes a good balance between “coaching up” and a kick in the pants.

Belinda Savage of MidAtlantic IRA spoke next and had some scary numbers for retirement. 45% of Americans have no retirement savings! I sincerely hope people reading will think about this. At the same time, she noted how Wall Street has failed to generate growth in the average portfolio over the past 20 years. Savage discussed how an IRA Asset Business Trust works. Some benefits include simplified administration of investments, decreased need for custodial approval, time and fees, making direct investments and using a local bank or credit union to have great control over payments and record keeping. The legal status was also protected in a federal court case.

Next up was Adam Adams, who in less than a year has bought and managed 23 notes. Adams discussed how he uses Customer Relationship Management (CRM) to integrate, organize and automate his notes business. Adams uses PipeDrive, which can be used to record and track business progress and also professionals such as attorneys, realtors, loss mitigation, servicers and bookkeepers. Adams also echoed Carson in that no one can do it all and noted the need to master delegation. Lastly, Adams talked about social media and how me maintains a presence on several platforms. I am new to this whole subject but was impressed with his delivery and subject expertise.

Scott Carson spoke again and discussed the need for note investors to be able to raise capital to fund deals. Carson demonstrated it's sometimes possible to find contact information for potential IRA investors with some online tools. Its very impressive what can be found online these days.

Michelle Hill next delivered an inspiring presentation. She explained how she started her business largely to ensure a quality life. Hill noted how she adapted and changed her business over time to adjust to new environments. At the same time, she noted how she treated people fairly along the way. Now, she lives in Hawaii. In her own words, Hill “lives life on our own terms.” While not as technical as others, I was very impressed with Hill and how she set goals, made a plan and took action with an end destination in mind. In her own words, she lives life on her own terms.

George Antone taught us some ways to hack finance. Antone started his career in IT and has accomplished much including writing several books, helping develop Quicken software and having success as a real estate investor. Antone discussed how people can make different decisions with their money to save hundreds of thousands of dollars over their lifetimes, with savings in housing and insurance.

Scott Carson closed out the day discussing the positive near future outlook for note investing. Carson rightfully noted how all people have a choice between two options. First, people can complain and place blame and fail to act. Many of these people let fear stop them. Or, people can make a plan and take action and have a chance to succeed. These people are able to overcome fear, which Scott notes as “False Evidence Appearing Real.” However, Carson also noted how everyone should have their own definition of success. Carson talked about the need for change to meet your goals and delivered a heartfelt call for action. It doesn’t happen all at once. But every day it’s important to just do one percent better than the day before.

Overall, I’ve gotten the most out of this conference than any other. Why? Quite simply, I decided to. I took it more seriously. I gave it my undivided attention. I minimized distractions. I’ve even taken steps into Social Media, which I used to avoid like a cat avoids water. But we all have to make decisions to smash through our barriers. In the words of Rocky Balboa, “That’s how winning is done!”