All Forum Posts by: Kevin Moen

@Juan Reyes Are you looking for performing or non performing note? Our fund invests in both and sells notes as well. I might be able to help you out, feel free to message me to speak in detail.

@Aaron Millis are you looking for performing or non performing notes? I am an active note investor and manage a fund that buys and sells notes. I might be able to help you out. 

Kevin

@Ivan Lai Trying to identify a property and work backward to find the note holder and buy the note is not a common model. That would be extremely difficult to achieve and you would be better off spending marketing time and effort in other strategies. Most note investors buy across the country, buy in bulk, and unlike Real Estate investing the locations are not as critical as the paper itself, depending on the strategy. Our fund invests in notes, and we also JV with other investors. Though the odds are slim, we may be able to wholesale you a non performing note in your area. Where are you looking for flips?

@Michelle Almodovar If you are looking for passive income in retirement you may also want to consider investing in notes secured by real estate. If you like the idea of renters making monthly payments to you of principal and interest, never calling about repairs, and paying their own taxes and insurance, that is called a borrower and exactly what note investing allows. I know many investors who prefer notes over real property in retirement for the strong returns (competitive with rentals) and lack of liability.

@Keegan Mulholland, if you are just looking for passive income have you considered investing in notes? I know many investors with a full time job prefer note investing over real property as there are far less headaches and liability. Which would you rather collect, a rent check or a mortgage payment? I will take the latter. 

You cannot loan yourself money, but you can loan others or even buy a performing note in your SD IRA. I invest in performing mortgages in my SD IRA vs real property. The return is very similar, there are far less headaches, and it doesn't make sense to me to invest in a property and use leverage when you pay taxes on the leveraged portion of the investment, and can't take the mortgage write off.

@Stephen Igbeka Is this a self directed retirement account you are referring to? 

If so, and I assume that would mean your cash is not currently growing if its sitting idle in a SD IRA, is that also correct?

Personally I buy notes in self directed retirement accounts, and real property with cash. You lose the benefits of leverage when you invest in real estate with an SD IRA, and if you do leverage the purchase you have to put a huge % down, and get a non recourse loan. So I invest in notes with my SD IRA for a nice return, and use cash and leverage to buy RE. This way I get to take the interest as a write off, and have less negative consequence with taxes vs buying property with a SD IRA.

You can find partial notes for $10k to invest in and make a good 6% to 8% return.

Like Ryan said you define your metrics, and when a deal hits those metrics you put it under contract and close. If she is not getting any other offers, and there is little demand for her house, then the investor is not really screwing anyone. Fair market value is what a buyer is willing to pay. Is she marketing it to owner occupants? If the work needed is only cosmetic, why not list on MLS and sell to an owner occupant? That will net her the biggest payday.

@Fred Lopez I would strongly recommend having a third party service the note. You could even sell him a partial, and keep the back end of your note for free (recover your cost from his investment in the partial). Many of our investors come to us with Self Directed Retirement accounts. As long as its properly serviced and local and federal laws are followed, and as long as he is not related to you in your vertical ancestry, this is a pretty straight forward deal. 

Like you point out the investing comes in during underwriting and making sure the loan is a good investment with regards to risk vs return. That is what note investing is all about, and there are ways you can structure and underwrite the deal to make it more attractive to investors/note buyers. 

Kevin

@Randy Hallowell  Are you looking into rentals? Maybe something turn key, or to find a local deal in Walla Walla? I live in Seattle, typically speaking the Eastern part of the state will cash flow pretty well, and competition is much lower. I would start in your backyard, or if you don't have the time to dedicate, you could look into turn key rentals as well.