All Forum Posts by: Jeremy K.

Thanks Mike - I definitely see that point.  In Denver, it would take a good pile of cash to invest in a rental property.  Like 80-120k cash for 25% down on a decent rental, which would liquidate most of my market positions.  I like the market mix that I have right now, so that's why I was turning to P2P for the funds.  I'm new to real estate investment and I'm sure there are deals in any market, but Denver is super hot right now.  I'm wary of super hot markets.  

I'm thinking about taking out a $25,000 P2P loan (Lending Club, Upststart, Prosper, etc) at 6.9% interest rate for 36 months, and then investing in a note fund with a pref return of 10% for 36 months.  I've put it in the spreadsheet and it pencils out.  Only downside I see is that the monthly payment of the loan (which is fully am) is higher than the monthly return from the note fund (which is interest only),  I'd be out of pocket around $500 a month, but after paying myself back, I'd have 4-5k left over as profit at the end of the term.  I was looking to save around $1,000 a month anyway, so I would look at it as savings that gets a return.  

Of course all of this is predicated on the note fund performing, but let's just assume it does for the sake of this analysis.  What are your thoughts on this idea?  Is the cash-on-cash return too low over the 36 month period?

Thanks @Mark K. & @Henry Li for your info.  I'm reasonably sure I'm comfortable with the risks of the PPR fund.  Obviously, if they go out of business, I don't get much or anything back from my principal, but the same is true of any stock as well (I owned AIG stock in '07 & '08 haha). Just have to diversify so one thing doesn't destroy your investment account.  If the worst is that the tax reporting is a little delayed, that's something I can live with.  I'm really interested in getting into notes, and obviously Dave Van Horn knows what he's talking about, so this would be a good introduction.  

Out of curiosity, @Mark K., you mentioned safer funds that you like - can you expand on that?

@Henry Li - I was curious to see an update on your experience with PPR on the note fund so far?  I'm also interested in investing with them and wanted to find out how its going.  Thanks!