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.