All Forum Posts by: Gordon F.

Originally posted by @Chris Seveney:

@Gordon F. You can find product in non judicial states but not where homes are appreciating rapidly

Many of the rust belt states are non judicial and the price point of housing in those states is less than a parking space in most major cities. So you can find notes in those locations just expect to pay more.

Ah, got it!  Thanks for the reply!  

So markets in “holy grail” states, such as Texas, are pretty much closed off, but if you’re willing to accept a less return — maybe signfcantly less — you can potentially find deals in other non-judicial states.  And I’m assuming those markets are also less liquid relatively speaking, so it’s harder to exit a deal?  

At this stage in the notes game/economic cycle/whatever you want to call it, generally speaking — forgetting the pure dumb luck cicrumstances and other needle in a haystack situations — generally speaking, it sounds like notes investing is analogous to fishing for tiny fish in a big pond.  Is that a fair assessment generally speaking, or am I way off?

This is interesting about the Texas note market.  With all the real estate and land, I’m surprised there aren’t any notes that are really “investable”.  It sounds like I shouldn’t be surprised. I would assume all non-judicial states are going to be either tight or tighter than their judicial counterparts, which means if you want note deals that are neither one in a million nor a needle in a haystack, you’re probably left with judicial states.  If that’s the case, then lol. 

Originally posted by @Cody L.:

Originally posted by @Gordon F.:

I’m finding it difficult to locate networking events, clubs, or other “in person” resources for notes/liens/etc investors.  It may be a long shot, as it seems these “alternative strategies” are the hardest to network around.  I’m already attending NoteExpo in Dallas in November, but are there any local Houston networking events or clubs specific to notes/liens/etc?   Any advice from anyone on a good place to start networking in person for these sorts of strategies?

My advice?  Use meetup or something similar.  Forget 'clubs', find a few people DOING this and make them your best friend.  That's what I did in the multi space (and some became genuinely my best friends).  Clubs and groups might be just a bunch of people that want to do it and not people that ARE doing it. 

 Thanks, Cody.  I completely agree on the clubs!

I’m finding it difficult to locate networking events, clubs, or other “in person” resources for notes/liens/etc investors.  It may be a long shot, as it seems these “alternative strategies” are the hardest to network around.  I’m already attending NoteExpo in Dallas in November, but are there any local Houston networking events or clubs specific to notes/liens/etc?   Any advice from anyone on a good place to start networking in person for these sorts of strategies?

Originally posted by @Chris Seveney:

Yield is also your Internal Rate of Return (IRR). Best way to describe yield is, if you have $1,000 now, in 6 years if you wanted to have $2,000 what is the yearly interest rate you would need to achieve to double your money?

ROI is just your income divided by your investment. Over long term investing when receiving fixed income you always use IRR vs. ROI.

As a sidenote, people who are saying they are getting 30 percent returns in real estate are investing in very high risk products. Check out the rule of 9. 

The other thing to remember about funds vs. real estate is funds are very liquid, you can get your money in and out any second, with real estate it is an illiquid asset and if the real estate market tanks like the stock market has done the last two days, you can not get out at the snap of a finger. Notes are more liquid than physical real estate but you are still not considered very liquid.

Chris, great feedback, and thank you very much.  I have two follow-up questions for you.  These may be stupid questions, so I’ll apologize up front and note that I’m new and still trying to learn from you guys.

1) Regarding the 10/10/10 rule, you said that’s 10% down for 10 years at 10% annually.  Who’s putting the 10% down and why, and who’s getting the 10 years at 10% annually?

2) What’s a good exmple of the 10/10/10 rule in practice?

This is a great question and one I’m also asking as a new potential notes investor.  

Originally posted by @Michael Dang:

Welcome Gordon!  That's a lot to be focused on.  Don't get that new shiney object syndrome.

@Michael Dang, thank you very much!  Absolutely, and to be clear, while those are my interests, it’ll be one at a time, one step at a time.

Thank you, gentlemen, I appreciate it. I’m looking forward to being part of this place.

Hello everyone, I’m a new investor from Houston, TX. ’m focused on the alternative side of real estate investing, so that would be notes/paper/liens, section 8/distressed, manufactured housing parks, international, etc.  First above all else, I’m the MOST interested in building my network and learning from those smarter than me, so I’m eager to connect with anyone and everyone. Thanks for the great community.

Hello everyone, I’m a new investor from Houston, TX. I’ve lived in Texas all my life, having grown up in San Antonio for about 12 years, lived in Dallas for 25 years, and now I’ve been in Houston for about 5 years. I’m still building my entry strategy as I learn more; however, I’m looking to build a serious, long-term business, as opposed to recreational income or a hobby. I’m focused on the alternative side of real estate investing, so that would be notes/paper/liens, section 8/distressed, manufactured housing parks, international, etc.; although, I highly suspect my entry will be the house hacking/duplex route. First above all else, I’m the MOST interested in building my network and learning from those smarter than me, so I’m eager to connect with anyone and everyone. Thanks for the great community.