All Forum Posts by: Patrick Desjardins

 Can't argue there, it is very cash intensive and dealing with attorneys is annoying as hell. But I wouldn't consider spending your day sending emails hard work, or a hassle.

Her characterization of NPNs is fine. The beauty of notes is how scaleable they are.

I have a friend (also on BP but don't know if he wants to be named) who manages 120 notes by himself, some from his portfolio and some for clients. I'm not even sure he has an assistant.

Compare that with managing 120 rehabs!

It depends if you're searching for performing seller financed notes vs performing bank originated notes.

I'm not very familiar with seller financed notes but it seems like buyers mostly do direct marketing to people holding the notes.

As for bank originated notes Bob gave good sources. Hop on LinkedIn and join the note related groups / connect with note buyers and sellers. You can also go to conferences and you'll feel like a rock star. Everyone's looking for buyers.

It's not clear from your message what your objective is. You mentioned that you're working on getting out of debt which is great. Note investing is excessively cash intensive - to the point where the only way to grow is to use OPM. Unless all you intend to do is find loans to foreclose, you're going to run into a lot of note deals where all the expenses are front loaded (buying the note, servicing fees, legal fees, insurance, etc) and you get paid long term as part of a workout agreement.

If you're getting infinite returns from your rentals then keep them. They have better tax treatment than notes and will provide you with a solid base. If you're excited about the shiny object that is notes, save up the 20-25k and then do a JV with an experienced note investor. Just don't sell good assets to jump into a niche industry you know very little about.

If you started out with a 100k IRA or something then dropping landlording to start investing in notes would be fine. It's just not a great investment vehicle when you need to save enough to buy "one" note which may turn out to be a stinker.

He is one of the worst out there. Expect a lot of upsell to their massively overpriced programs.

Think about it, these guys charge 10-40k for their programs. For that price you can partner up with a local investor, learn a ton AND potentially make profits.

When you buy those overpriced courses the money disappears into the guru's pocket and you still aren't a real estate investor.

I've spoken with 2 of his students recently, both of which are BP members and somewhat successful. And Bob's results ARE typical, notes are a great investment.

The main complaint is that his classes are overpriced.  Depending on if you're going to invest in 1sts, 2nds, seller-financed, performing, NPNs.. you can get the same results for a fraction of the price elsewhere.

So.. it's not a knock on Eddie Speed or his students - it seems like it works. But why blow 15k on his bootcamp when instead you can spend 1k for someone else's, get the same knowledge and network, and buy a 14k note?

Congratulations on getting started young.

I think it really depends on what resources are at your disposal. How much money do you have to invest?

Aside from money, another factor is who is in your network? If you start going to a real estate investment club and everyone is a rehabber then you might have more opportuties to do what they do. Same if they're buy and hold, or note investors.

If you don't have a lot of resources, perhaps starting a small services business is best (ie lawn care, painting, flooring). That way you increase your capital base and you meet a lot of contacts.

Another is that notes don't hedge you against inflation unless you're actively trading them up. The nice $500 payment today will be the not so great payment of 500 25 years from now (assuming no sale/refinance). Meanwhile rents should have increased considerably in 25 years.

Both notes and real estate have their place in a passive investor's portfolio.

I disagree with some of the assumptions above.

Here's my take on gurus: most of them were / are successful to a certain degree but just like most of us they need to secure deals and financing.

Being in front of large crowds is incredible for their brand. Since 99% of attendees will never take action, it creates an army of potential investors and bird dogs. Some like Dave Lindahl flat out tell people to come ask for help when they stumble upon a deal.

Obviously the money with low overhead must be great too. And there are undoubtedly scammers which we won't name. But I think many of them didn't start teaching with a "let's skin some newbies" mentality.

I've personally never paid for education except for a mentoring program. I always thought those high paid courses were BS but recently I've met several people who have followed courses, taken action and are growing much faster than average.