The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: rob in cal on January 27, 2016, 10:56:10 AM
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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.
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The yield on these has been driven pretty low, on the secondary market. How are you planning on sourcing them?
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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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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.
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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.