It’s not uncommon for individuals who are new to the note investing industry to seek out single asset deals until they feel more comfortable with their ability to turn a profit on an investment. However, while single investment opportunities can be lucrative, there are many reasons to consider purchasing a pool of notes, even in the beginning stages of your career. You’ve heard the phrase “don’t put all of your eggs in one basket” – it holds true when it comes to notes. When you can invest your money in a handful of properties instead of just one, your odds of having a compensating return increases. Here are a few helpful tips on how to boost your profits in the note investing industry by considering when it’s best to buy a single note and when it’s time to go in on a whole pool.
When it comes to note investing, having a solid understanding of how deals are made, how they evolve, and how to measure the outcome prepares you for taking on new deals and growing your portfolio. To help you make the most out of your note investing adventures, consider this three-part framework.
When you’re presented with investment opportunities, it’s easy to get caught up in worrying about the big numbers and what it could mean for your bank account. Unfortunately, many talented professionals get spooked by numbers like $1 million, $5 million, or even $50 million and jump ship before ever considering the potential outcome of a great deal. However, that doesn’t mean that the big number deals are beyond your abilities or that they’re too risky. It all depends on the factors within the deal, how you interpret them, and how you deploy your strategies to accommodate them.
As you build up your real estate investing career, the conversations and deals you’ll be part of will involve more complex factors. One of the most challenging phases of non-performing note investing is getting the note re-performing and deciding on a lucrative exit strategy. Today, we’ll introduce you to a handful of terms specific to the most common scenarios you’ll navigate in the real estate investing world.
The asset manager at a bank or hedge fund can be one of the most valuable contacts in your entire network. Asset managers have the ability to control your deal flow and the availability of notes that you need access to in order to build your portfolio. Knowing what their pain points are and how you can fix them can make the difference between having a lucrative, flourishing real estate investing business or one fraught with unpredictable and sporadic deal flow. Here are the top three pain points that your asset manager deals with and how you can swoop in to save the day.
Getting involved in the real estate investing industry introduces you to a whole new world of terminology and jargon. And let’s face it… it’s not like our industry’s jargon makes a whole lot of intuitive sense. Note? Tape? Performing or non-performing? If you didn’t know any better, you might think we’re talking about how well you’re doing in a high school art class. To help you get up to speed on the basics of understanding the lingo in the real estate investing industry, we’ve put together this guide.