All Forum Posts by: Kevin Moen

@Robert Rayford  What are the terms of the note? You say it will yield 8% in 45 days, what is the interest rate, structure, etc? Is there a balloon due on 3/1/2017?

@Jennifer W. How did you buy the property? You may want to keep in mind the value and return of the rental if you did a low down payment loan. You also may want to consider doing a refi to a conventional loan if you are in a position to do so. But firstly you should run the numbers on this property as a rental. Have you calculated what your cash flow would be after PITI repairs and vacancy? Having positive cash flow after a refi, or with the existing loan in place is crucial. If you can refi and still have a cash flowing rental this may be a good way to add a rental while growing equity in one of the best markets in the country.

@Osmar Costa Jr. Some funds are structured such that they can only work with accredited investors. I do know of a few that are able to raise funds from "Sophisticated Investors", which is defined rather loosely by the SEC, but essentially requires the investor has reasonable knowledge of the asset class and risk associated. 

@Jenifer Levini Thanks for this info. With regards to co-mingling, if you pay an expense from your personal account, then have your LLC reimburse that expense, does that help protect the integrity of that entity in the case of a lawsuit, etc?

@Jonathan Towell What is your end goal? As Jay pointed out, if you want to get into notes you should steer clear from those secured by mobile homes, unless you really know what you are doing. Is your end goal passive income, capital gains, what model are you looking to utilize? Our fund invests in both performing and non performing notes, and we help newer note investors in various ways.

@Scott Hawley I second many of these posts. To also more simply answer your initial question, notes trade at a discount as a reflection of risk. I don't know many seasoned investors who would buy a note with 0 payments for 87% of UPB. There would need to be some strong redeeming factors like very high equity for that to be an investment we would make.

Also your thoughts on the seller taking a loss are likely incorrect. I sell notes at a discount all the time. Just because the UPB is $100k (for example) does not mean I have $100k of cash in the deal. The power of finance is creating money out of thin air. This is banking, and why sellers can often afford the discount.

Only commercial collateral? @Don Konipol

@David Wolf I realize there is a 5 year balloon, how is the amortization structured for this loan. I am assuming the $986 is just P&I, correct? How many payments has the borrower made? Is this loan Dodd-Frank compliant? Feel free to email me [email protected] with those details, we would very likely make an offer based on those answers.

@Jay Hinrichs Totally understandable, shortly after I posted I thought to myself, probably not the best medium for those questions. I will contact you offline!

 We are right there, just couple investors away from that first million. How do you find your investors and what marketing strategies are you implementing with a $500k minimum investment amount? If you don't mind me asking how do you structure the return?