Quote from @Luke Machen: Hey all - I'm new to the RE investing game and have some (probably dumb) questions regarding cash on cash returns.

Not know what Eddie Speed is all about, is there a game plan you have for notes?

Most seller finance notes have interest rates in the 9-10%+ range.Also, 5% down is very little skin in the game for the borrower.

How come you don't see the excitement you could have, of asking yourself all those questions at your desktop, if only you had some skin in the game?

Nice thing here is property maintenance/expenses is turned over to the tenant/owner and you're out of the landlord game, but still get monthly income.  

If we buy this loan, we need to have a thorough game plan on how we are going to be resolving this and understanding these dynamics is key to managing expectations and protecting investments.Sounds like a deal more for someone that buys partial inheritance estates and spends years piecing it together than a note investor.  

We are late in the game but hopefully we can catch-up leveraging the plethora of knowledge that exists on this platform. 

I am new to the real estate game.

If you have a handshake/wink-wink kind of deal then you should get a Promissory note at least that outlines the terms of the loan and what happens if it default, who the loan is between, and usually in agreements like this the language is broad. 

Congrats on getting in the game.