All Forum Posts by: Evan Rattray

Quote from @Chris Seveney:

Quote from @Evan Rattray:

Hello all.  I am about to launch my note investing business and have been running through my financial forecast scenarios.

I'm in a debate with myself of how I need to get started. I have an investor that has committed up to $500,000 to get the ball rolling.  Right now we have tentatively agreed to a 10% return over 20 years as his return.

I've been looking at Purchasing performing notes to generate monthly returns but once the initial investment is done the profits are only $1800 or so a month.  It's going to take a long time to generate enough cash to purchase another performing note. 

I had the debate of purchasing enough performing notes to pay the return to my investor and then spending the rest on non performing notes to generating potentially higher returns down the road.

I guess I'm curious how someone, that now has knowledge in the note investing industry, would proceed if they were given $500,000 to start over.

 I would be shocked if profits were even 1800 mo to you after paying an investor 10% on $500k. If an investor wanted to commit that amount and you make $1800 why would you not take it? What are you thinking you would make?

If you buy performing notes your returns are going to be 10-12%, non performing can be higher but you absolutely need to know what you are doing. 

Curious what are your expectations? 

Well, I'm not 100% right now. That's why I wanted to get some advice from folks already in the field.  The investor I have hasn't done anything like this before and obviously neither have I.  We are both utilizing our resources to see if 10% return is normal or even fair.  

when I did the most recent forecasted financial analysis I used a note I found on Paperstac as my example.  $65000 investment on a UPB of $75000 with monthly payments of $835. I think the interest rate was 9%.  

the payment to my investor was around $4800. In the first year I'd be able to pickup 8 of those notes (I know they are all different, I justed used that one as my forecast) that had me bringing in $6680 in payments with $4800 going to my investor, I'd only be bringing back $1800. 

now I am new to this and very well could be overlooking some things. I'm just trying to figure out the smartest way to proceed with having an investor.  I don't have the money to start by myself or I would have done so already.   

Hello all.  I am about to launch my note investing business and have been running through my financial forecast scenarios.

I'm in a debate with myself of how I need to get started. I have an investor that has committed up to $500,000 to get the ball rolling.  Right now we have tentatively agreed to a 10% return over 20 years as his return.

I've been looking at Purchasing performing notes to generate monthly returns but once the initial investment is done the profits are only $1800 or so a month.  It's going to take a long time to generate enough cash to purchase another performing note. 

I had the debate of purchasing enough performing notes to pay the return to my investor and then spending the rest on non performing notes to generating potentially higher returns down the road.

I guess I'm curious how someone, that now has knowledge in the note investing industry, would proceed if they were given $500,000 to start over.

Quote from @Chris Seveney:

Quote from @Evan Rattray:

Good Evening all.  I'm getting into note investing and have been doing a lot of studying and reading trying to prepare myself as best I can.  I was on Paperstac looking at notes and see several of them have "Escrow/Impound" in the Note Terms.  How does escrow affect us as note holders?  Is that something I need to calculate for and keep money back for?

That is a really good point, I didn't think of that.

 IF you are buying a performing note, you will want it to be on escrow. In many cases the borrowers do not save up for insurance or taxes and then will not pay them which can force you to advance those funds. When its in escrow, its added to the payment so one less thing to worry about

Quote from @Bryan Hartlen:

@Evan Rattray this means that the current servicer is collecting note payments as well as taxes and insurance and is holding the tax and insurance portion of the payor’s funds and is responsible for paying taxes and insurance on the payor’s behalf.

If you buy a note with an escrow account, the escrowed funds and the obligation to pay taxes and insurance transfer to you and your servicer. 

 Awesome, that's the answer I was looking for.  Thanks Bryan.

Good Evening all.  I'm getting into note investing and have been doing a lot of studying and reading trying to prepare myself as best I can.  I was on Paperstac looking at notes and see several of them have "Escrow/Impound" in the Note Terms.  How does escrow affect us as note holders?  Is that something I need to calculate for and keep money back for?

Hi all, my daughter is sick so I won't be able to make it this week.  Please feel free to get together a hang out without me though.  This is meant for everybody to network, not just for me.  Have fun y'all.  I'll see you next week!

Hey everybody. I know we are all looking to succeed in Real Estate Investing and everyone needs breakfast! I seem to always have something going on during the monthly meetups but still want to be able to meet some like minded folks and see if we can learn and help each other. I'd like this to be a weekly get together that is very casual but still beneficial for everybody. We can swap stories, share ideas, refer contractors, colleagues, realtors etc.

Hey everybody. I know we are all looking to succeed in Real Estate Investing and everyone needs breakfast! I seem to always have something going on during the monthly meetups but still want to be able to meet some like minded folks and see if we can learn and help each other. I'd like this to be a weekly get together that is very casual but still beneficial for everybody. We can swap stories, share ideas, refer contractors, colleagues, realtors etc.

Originally posted by @Jarrod Frankum:

I'm interested in going. 

 Sounds good, I'll see you there.

Originally posted by @Steve Shedd:

Thanks Evan unfortunately I’ll be in ft Myers Florida but can possibly make some in the future. 

 No Worries Steve, we will catch you at the next one.