All Forum Posts by: Edward Condon

The human pageant on full display!  

Dear Admins,  Forgive me if this has been asked & answered previously.  Might you consider bifurcating this forum into distinct forums, one for Tax Liens and the other for Mortgage Notes?  It seems to me that these are sufficiently dissimilar endeavors.  Each may be worthy of its own forum.  Sincerely yours, Ed Condon

@Grant Jordan Ward
Your post (potentially) contemplates criminal trespass and felony theft.  Stay off the property until you own it!

@Dan Blaylock
Hi Dan.  My company continuously creates real estate-backed paper.  What we don't portfolio, we sell off.  Typical values range from $200k to $1MM+.  If an investor came to me with $1MM to deploy, I would encourage him to do 10 / $100k partials or, better yet, 20 / $50k partials.  Counterparty risk is diversifiable.  Diversification is the only "free lunch" in finance.  You may as well avail yourself of it.  That said, I wouldn't want to sell partials in increments much below $50k.  (Anyone reading this is invited to reach out to me.  I'll be happy to share my inventory.)

@Andrew Syrios  Good point!

@Karolina Powell  Go, you!  Outstanding!

I wouldn't necessarily call Chris Seveney a "prophet" of the note business.  But, if somebody else did, I sure as hell wouldn't argue!  When I was educating myself, I listened to every podcast on which Mr. Seveney appeared.  Chris, I am grateful for the knowledge you imparted.  Thank you, sir.
@Chris Seveney

@Stephen Heebner
A good note investor should have a higher ROR than a fund investor.  HOWEVER, the single note investor is not a "passive investor".  A measurable portion of his returns (plus or minus!) are attributable to his acumen.  With each note, he creates a unique, discrete counterparty risk.

In a good fund, the investor is truly passive.  His risk is versus a diversified pool of notes.  And, in an ethical fund, the investment sponsor has first loss capital and eats any defaults dollar for dollar.  Feel free to DM me.  I can show you either individual note or an ethically constructed fund.

@Sam Booth
If you think about it, Dave Ramsey is not actually advocating investing (becoming rich) in real estate.  He's saying, "Go get rich elsewhere" (i.e. the practice of dermatology), then take your dermatology riches and place them in real estate as a "store of value".  Nothing wrong with that.  But, no one has everbecome rich doing it that way.  They became rich doing whatever they did to accumulate the cash.

PS  The natural law function of inflation is to cancel debt.  If inflation is going to have its way with you at the grocery store and the gas pump, you'd better have your way with inflation on your balance sheet!

It is just a "portfolio approach". If you assume that you have various "buckets" (i.e. taxable, tax-deferred & tax-free) and differing objectives (i.e. growth, income, liquidity), paying attention to proper "asset location" will add to your net, net after-tax bottomline. In your taxable bucket, all capital gains taxes are optional. But, all IRAs have to get emptied. A Traditional IRA will convert what should have been an optional gain taxed at cap gains rates into a mandatory tax at ordinary income tax rates. Also, with a Traditional IRA you have to make dang sure you have sufficient liquidity to take your RMDs!