All Forum Posts by: Larry Johnson

@Ron Flatt the notes that we get involved with ware 50 to 65% LTV non owner occ 2 to 3X debt service coverage and return 8 to 10% to the investor.. we call it mail box money.. 1500 plus notes in service over the last 5 years less than 10 defaults.. Its a niche and program that I created out of a need for this type of funding.. its uber fun.. I look at it like the bed rock in a portfolio. or like a stock broker puts you in safe stable then you go for medium growth and then you can try your aggressive growth.. most of our investors use their 401ks to buy these notes.. and being one note one investor you don't need to be accredited like the note funds.. I really like were your going selling on terms.. as long as you adhere to Dodd frank that is a great way to transfer your management of tenants to management of notes and cash flow.. great job.

@Larry Johnson

@Micaiah Cormier

I started my REI in 1997 at the age of 31.

If I had to start out now at age 52, I would certainly NOT buy:

......

Just my opinion, however!

Larry Johnson
There will always be haters which I hope more people read those types of articles and stay away from notes as it is less competition.

On the performing side If I told you that you can buy a note that the borrowers on $30k on, are paying $300 a month and the house is worth $75k - oh and you can buy it for $24,000 that reduces risk.

On non performing there are many sellers and websites you can buy non performing notes and they are overpriced or not worth anything but there are also deals you can get direct from banks, credit unions and some hedge funds that are direct. On non performing a typical deal will be acquiring a $50,000 asset that is upside down (owe more) and paying $25,000 for it. From their we can either get the borrower repaying or if we have to foreclose on the property. Then you can rent it, Rehab and sell it or sell it as is.

There are inherent risks involved but if you do the proper due diligence and use professionals (legal team and licensed services) you can mitigate a good amount of risk.