All Forum Posts by: Michael Terry

@Tracy Z. Rewey, 

Youre absolutely right. Giving up layers of direct control and effort subtracts from not only the payout, but also the wisdom I would gain if I managed it myself. 

However, I did find a fund yesterday that invests in performing notes for unaccredited investors. It is run by the lads at Paperstac (popular notes broker, im sure you know them), and returns are historically very good at about 10%, annually.

That might be the utterly passive route I am looking for, and it might not. There are many investments out there that could make that return - real estate crowdfunding comes to mind.   

Do you have any thoughts, direct note purchase and management vs. fund? I'd love to hear the expertise of people who have done either or both before I make my move. 

Cheers.  

Morning all, 

I am working to become a mortgage note investor presently (performing only). While I enjoy the education, I am looking for a company that will handle all details for me and allow me to collect passive income with an almost hands-off approach from start to finish.

This need extends past servicing, and includes:

- Selection of performing mortgage properties based on my specs and resources (either through Paperstac or some other broker)
- Due diligence
- Servicing
- Potential legal representation should the need arise in the case of non-payments to the note agreement.
- Possible Mortage Note Mentorship

Is this something that exists out there?

I dont mind doing the work, and I have all of these individual resources lined up for myself. I also understand all the benefits of learning the business and making mistakes and creating my own path to financial independence. But as a busy father with a full-time job, what I am really looking for is to invest the tens of thousands of dollars I have saved right now, pay someone handle all of it, and then be on the look out for that golden passive mailbox money.

If anyone knows of companies like that, shoot me a message or post a comment below. 

Cheers. 

@Chad U. Thanks for the good advice! I live in Massachusetts, so it may be a bit difficult to get a drive by out of state. But for all of the other recommendations, does my Due Diligence company handle all of those details, or will I have to get an additional third party to do that research? Cheers and thanks again. 

Hey guys,

I have finished reading Dave’s book “Real Estate Note Investing,” along with Kiyosakis “Lazy Way to Invest in Real Estate” and Rachel Richards “Passive Income, Aggressive Retirement.” 

I am interested in purchasing performing notes and gave the financing lined up through a self directed IRA (which I will replenish with the payments to buy more notes. BRRRR, right?)

I have a broker lined up with the inventory. I have a due diligence company.
I have a servicing company to handle the money. 
I have an (optional) mentor company if I need them. 

I have an exit strategy. 
I can get a real estate lawyer in the city where I purchase. 

Question now stands, what else do I need? I want to be smart about this but I don’t want to cripple myself with analysis paralysis. I’m excited to get started, and I wanted to see if anyone had any last ideas for this mariner before setting out on the sea towards financial freedom. 

Thanks in advance. Looking forward to seeing what the group has to say. 

My concern is doing due diligence on a property that is not located in my state. For instance, if I bought a mortgage note on a property in Baltimore, MD (I live in Massachusetts), how would I go about doing the the due diligence I need to protect my investment? Are there 3rd party companies that do this for me?

Also, if the client defaults on the payments, am I on the hook for the mortgage? Do I have to make the payments? Does the property come to me by default? Can they squat there without payments?

Furthermore, do I have to contact him and let him know I am now in charge of the payments and give him my home address? What if he decides I dont have the clout of the banks and, again, decides he doesn't have to pay?

Thanks all.