All Forum Posts by: Dustin Verley

@Account Closed A couple things I've noticed. Your main dilemma here seems to be the lack of a down-payment. Which is completely understandable. Have you thought about taking on a private investor (or investors) - you know? Your doctor, the dentist, the nice old lady who has funds sitting around begging to be used, or even the auto mechanic who does work on on your car? Work with these individuals, I'm sure they would love a great return on their money.

Second, as many suggested, consider a live-in hack. You mentioned that you rather continue to live "rent-free." The problem is that living rent-free isn't necessarily generating any income or equity for you. Even with a live-in hack, the money you're paying in is (a) Building your equity in the home, and, (b) If you're renovating while living in, you'll get the tax benefits, as well as the force appreciation, more equity for you.

Eventually you can rent it out for a stable cash flow and refinance on the original home to utilize for your next property.

Or, you can always entertain the idea of a MFH (less than four units) - you live in one, and use the potential income to supplement qualifying for a mortgage.

These are very loosely-given suggestions, and your due-diligence is of the utmost importance. Take your time and don't rush and make sure that the first property you get is a GREAT deal!

Shiloh: I, too, am slightly confused by your initial posting earlier. Are you saying you've had three private lenders invest with you to purchase property? Not sure if I'm interpreting correctly here.

Abel: My intent for this post was to find if there's anyone out there who invests in other types of notes (or promissory notes to remain technical.) Notes, in general, come in many varieties, as Shiloh pointed out. Not always does it have to be a promissory note secured by a property. For instance, selling a car, collecting on an annuity or lottery winning, or as one person mentioned above, a companies receivables. 

Heck, this is what collections companies do when they purchase non-performing notes from creditors at a discounted price.

On the opposite side of the spectrum to what Edward suggested, rather than placing the funds in a low-yield CD account, and with the thought that the passive cash flow is only for a certain period of time, ask them if they would be interested in being a private lender for other future creative real estate deals you may have in the future.

This could likely result in a better return on their money than it would in a CD account, and allow you to leverage someone who is familiar with real estate investing as well.

Best of luck Joey...

A couple of different ways. BP actually has a section that enabled you to seek out hard money lenders based on your geographic location. You also Google for hard money lenders, or even utilize Connected Investor to find hard money lenders. Or you could always utilize private money.

The biggest point to take home is to ensure you do your due-diligence, ensure that the numbers work with utilizing a hard money lender as they typically or more-so for short-term purposes because of their higher interests, short-term loans, and other fees/expenses.

Good luck

Now that is a very wise investment! How did investing in such receivables work out for you? Were the small and mid-sized manufacturers or larger manufacturers? How did investing in manufacturing receivables differ from investing, let's say, in real estate notes?

You've actually gave me a new perspective on note investing... especially in manufacturing where cash flow seems to be imperative for continuing business.

@Phil G. We’re you purchasing non-performing notes such as debt purchases from creditors, or actual performing notes such as that of a business to business receivable?

Edward B. Yes, I’m aware. I even heard of some investing in lottery winnings and/or sports athlete contracts before. I was just curious if anyone here personally invests in other notes rather than just real estate. Thanks for responding. 😁

@Josh C. I'm going to assume that the OP was referring to painting the upper part of the dry wall as, many showers I've seen, not all, but some, do not heave the tiling or bath tub lining all the way up to the ceiling.

Granted, I'm aware that the main discussion here is note investing on real estate, however, I'm slightly curious to hear some feedback.

Does anyone invest in other types of notes or paper outside of the real estate variety? I studied note investing a few years back and noticed there are other avenues such as annuities and other types of paper that generate a form of cash flow. Would love to hear who invest in notes outside of just real estate notes and any advice they can give for said notes.

I started researching the note business about 7-8 years ago and eventually pulled back on the knowledge as I ended up going down a different path. Wish I had stuck with it. But in either circumstance, can someone share a link to any future NoteCamp events coming up, whether on-site or virtually online. Would like to get back into note investing and collaborating it with other parts of real estate investing.