All Forum Posts by: Kevin Moen

@Jared Carpenter Agreed, I am a fan of holding a few rentals, and investing in notes. My company does some value add in the note business for larger returns, and holds performing notes for cash flow and reduced risk. As far as geographic market we target 15 states that have reasonable foreclosure time should we need to go that route, and who are a bit more investor friendly. Our fund has a network of buyers and sellers, it really is a relationship business. I'd be happy to chat in more detail if you want to message me.

@Jared Carpenter I mean adding Deeds and Mortgages to an investing portfolio. There is a much larger invesntory of notes available in the US right now than distressed debt. If you really do the math holding a note offers as strong of returns as many rental properties. The benefit is lack of liability, headache, and need for management. When is the last time you called your bank for a clogged toilet? As my business partner says, I'll take a mortgage payment over rent any day.

@Matthew Drouin Yes the market is that segmented. Opposite the real estate industry, the note business has tons of inventory, and little competition/buyers. The online sites can be a good way of marketing your note, but to really move notes comes with a network and relationships to those moving large inventory, or with large networks. We have built our buyers list up over 3 years attending trade shows, networking, and getting to know the players in the business. You can sell notes on FCI Exchange, Notemarketplace, etc, but the real selling power is in relationships. 

I still think you should think through the model you are exploring in your head, or at least roll over to a solo 401(k) so you can legally lend to yourself.

@Ray P. No, you cannot loan yourself money from your SD IRA. Prohibited transaction all day. What I am saying is you could potentially invest in a mortgage/deed of trust or partial note. There is much, much more knowledge you need before seeking out notes. I would suggest entering a joint venture with a note investor and learning as you earn in that deal.

Funds can be a great way to invest passively. I would recommend seeking out funds that offer preferred returns, and that make their money from performance vs management fees. No better way to align interests, and ensure the manager has your best interest at heart than tying their pay to their performance. I know a great Note fund that offers a preferred return, no management fee, and equity split on performance. Message me if you want to chat in more detail.

@Sherry Weng you can easily make 7% - 9% investing in notes, and avoid the headache, liability and expenses that come with rentals. I love rentals, and they have their place, but if I were looking for passive income in that range, I would certainly have a heavy focus in notes. Feel free to message me to pick my brain if you want to talk in more detail about note investing.

@Roger Wagoner I am located in Seattle and would be happy to chat. You also may want to consider adding notes to your mix in with RE. Its great to be the bank vs a landlord! Feel free to message me if you want to chat more on the Seattle market, creating passive income, etc.

If you guys are looking for double digit passive income returns and get tired of making offers that are turned down on real estate I would recommend looking into note investing. Its much better to be the bank than a landlord in many scenarios!

I am not sure I am following your thought process. Why are you involving your SD IRA? Firstly, unless your SD IRA owns those buildings, there is no way to do this legally. This is the definition of a prohibited transaction. Secondly, why would you sell a note you originated for yourself? You have to take a discount, especially for a Jr position loan, so you are immediately losing money. Why not just go to a private lender and get a 2nd position loan secured by the property? If you have over 30% equity in the properties you can find lenders to do so. I can help connect you to them. You may also look into a portfolio loan if you have equity in multiple properties, and want to effectively pull equity out.

@Ashley S. If you are looking for cash flow and low risk have you considered investing in notes? Much easier to manage than rentals, similar yields when you take repairs, vacancy, cap ex, and management into account for rentals. If you were to invest $100k in a note fund you could spread your capital out over 20+ notes, and help diversify risk while making double digit returns.