Author Topic: investing in real estate performing notes  (Read 837 times)

rob in cal

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investing in real estate performing notes
« on: January 27, 2016, 10:56:10 AM »
   I've been researching the real estate performing note world, and am wondering if anyone on this board has had any experiences.  I'm interested in performing notes backed by a low ltv, 1st lien position only, so more on the tamer, lower yield side than the more volatile world of non-performing notes with their higher risk higher gain side.

arebelspy

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Re: investing in real estate performing notes
« Reply #1 on: January 28, 2016, 06:40:26 AM »
The yield on these has been driven pretty low, on the secondary market.  How are you planning on sourcing them?
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CashFlowDiaries

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Re: investing in real estate performing notes
« Reply #2 on: January 29, 2016, 09:52:29 AM »
I own a note just like that and have been thinking about selling it to buy another rental property where I can get higher returns.   I'd have to rerun all current numbers but off the top of my head i think its 70% ltv, 9.1% rate, seasoned already for 7 or 8 years, about 15 minutes from downtown Austin.    It was a 30 year fixed owner financed note I self generated awhile back.

Anyhow if you are interested, send me an email at cashflowdiaries@ gmail.com
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NoNonsenseLandlord

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Re: investing in real estate performing notes
« Reply #3 on: January 30, 2016, 06:13:49 AM »
If you have your own mortgage, why not invest in your own note?  I paid off a few of my own mortgages, and it is a great 100% guaranteed return.  I am currently paying off a 5.375% mortgage.  Only ~$130K left, target date is the end of 2016.  Otherwise, 2041 was the payoff year.

rob in cal

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Re: investing in real estate performing notes
« Reply #4 on: January 30, 2016, 01:38:46 PM »
   I've found a few secondary sources with returns in the 9-12% range.  Also, looking into the crowdfunding world.  Apparently Groundfloor is taking non-accredited investors and they offer short-term loans around 10% and some even higher on 1st position home construction short term  loans.