Getting started in note investing

I got started in note investing in Los Angeles out of sheer frustration.  I was trying to buy single family homes in foreclosure in 2001.  I was diligently knocking on doors of people in foreclosure & going to trustee auctions and getting either outbid at the courthouse steps or getting doors slammed in my face.  If you remember back then, borrowing money was very easy & prices were starting to escalate, so sellers weren’t that motivated to sell at the prices I was offering. I had just quit my full-time job & I needed to make real estate investing work for my family. At the time my wife was working as an educational consultant with the school district & her paycheck was essential for us to survive.

I learned about note buying from a well respected investor & decided to give it a try, because the door knocking wasn’t working.  After a few weeks of changing gears, I got my first note deal.  It was a non-performing $13,000 note that I bought for $500.  I couldn’t believe it, the seller actually agreed to my offer.  After that I was hooked.  I then I found a $30,000 loan I bought for $6,000 & just kept going.

Now, I routinely find double & sometimes triple digit returns on finding notes. Most of the notes I buy for my own account range between $5,000-$50,000 .  It all started with my first $500.00. One of the features I like is that I can diversify into several notes very easily with relatively low to moderate investment amounts.

My goal now is to acquire a nice portfolio of notes that will make payments to me for the next 10-30 years. That in combination with a portfolio of rental property should make for a very comfortable retirement.  I strongly suggest you look into note investing for your retirement, education for your children or grandchildren, or just general financial freedom.

Post Footer automatically generated by Add Post Footer Plugin for wordpress.