All Forum Posts by: James W.

I've invested in a few mortgage lending funds.

The idea is invested capital is spread over 100 loans. This is great from diversification and capital protection perspectives.

All 100 loans have to default to lose 100% - which is a rare scenario.

The annual yield is about 8%.

That means even if 8 loans default, entire year's interest is wiped out. 

So how is this ever going to be beneficial? 

If you say stick to it long enough, thats not correct. Because 8 out of 100 loans can default every year. Its a very real scenario. Its happening right now to my portfolio, and i am flat after a year's investing.

So every year investor comes out flat - and we are talking a normal market - not recession. That, would not stop at 0% gain.

So, whats the point of investing when every year a few defaults can wipe out entire year's interest? And that happens year after year.

Am I missing anything?

PS - I am starting to think that while Debt investing is considered safer, equity projects sponsored by big firms may actually be more beneficial. Because they are putting value into properties like Value Add. And Ground Up projects which are considered risky, may only be just as risky as Debt. Chances of a Ground Up construction not selling in a Metro area may be lesser than 8 loans defaulting out of 100.

I received my Q2 distribution.

Adding other people below who were waiting for this update.

@Andrew Lanoie I apologize for my remark.

But our investment is 40 times the monthly payment. So when we did not receive any response to our emails for several days, this naturally triggers concerns and emotions. Which may or may not be valid but we have no way to know until we hear back.

Thanks for getting back to us. We hope our capital is in safe hands with you.

@Cam Chan, @David Calme, @Sangeetha G., @James Richardson

@Andrew Lanoie

My investment is under the name of my family. 

Delay in distributions is understandable, and is not as big a concern as your no response to our emails. It makes us concerned about the safety of our funds.

I can PM you the names and if its a legit response - I can update my view on the forum.

 I invested 50K into your fund. 

You stopped paying after just one payment, and there are no payments for Q2 of this year.

I emailed you and your team several times about it - but you dont respond. I do keep getting newsletters from you every week.

Your phone service always "takes a message" and no one calls back.

What are you doing with my and other investors' capital?

I urge everyone on BiggerPockets to take note of this scam and fraud Andrew Lanoie.

They may refuse to sign & receive it. Any ideas?

Thanks everyone... I'll keep checking for more responses

Hi, I have a  investment condo in New Jersey. Two girls sharing it.

Lease ends June 2019. 

Tough tenants looking to pick a fight all the time. Wont cooperate with showings to sell.

They want to stay on even after lease expires. 

If i serve them a notice saying lease wont renew, 30-60 day before lease term, do they have to leave?

Or, is there any provision that may require me to renew the lease?

I understand this is not a legal forum, and I should consult an attorney. 

I wont take your responses as a substitute for legal advice. 

So please let me know what you know. Thanks.

Old thread but here's a response - 12% Debt on 2MM is 20K a month. 

Easy.

I do it and I am happy. But what bothers me now is no growth of the Principal. 

Growth comes with Equity.

I find myself struggling with allocating between the two, and my problem is not the yield. 

Its the time for which money is tied up in Equity. Its typically 3-5 years, if not more.

Also, while Passive Income is great, Debt tops off at 10-12%.

Meaning you need a lot of capital to generate significant monthly income.

One could possibly generate the same 20K-50K monthly with much less capital if running a successful business. 

Except it will take serious work and engagement. 

One could argue that Equity projects can generate similar 30% returns any day. 

But the problem is such high yield projects are typically ground-up constructions, and you have to wait till the sale is completed to see the money, which could be between 3 to 5 to 7 years. 

Running a business on the other hand, may be cash flowing in a couple months, if not immediately. And could be much higher yield like 50-100%.

I am actually on the look out for a business that could generate 50% yield on investment.

Like 50K a month on a 1-1.5M business. 

Any suggestions? 

Both are great warnings.

There are also these Debt Funds. The fund manager distributes the investment over hundereds of loans.

I wonder if thats better over Crowd Funding equity investments in terms of capital recovery.

Also, I dont know why but somehow I feel comfortable investing 50K into a private Crowd project, but not 2500 into a exchange traded REIT or shares.

Do I misunderstand?