Note Investor

Quite often, I’m asked to meet with folks who want to learn more about investing in notes or more about the note business in general. Although what I do today pertains primarily to the note business, many of the questions and concerns that are brought to me are very similar to those raised when investing in the residential or commercial real estate business.

Personally, I feel that there are two ways to approach the newbie investor.

The first approach, which I am not a very big fan of, is to silently yell, “Yippee, here’s a live one! I wonder how much cash he/she has and how I’m going to get my hands on it.” I’ve seen many people, who raise capital, take this type of approach, basically sending the message, “You need me, and I know more than you. So trust me, I’ll make you a lot of money.” In other words, let me give you a fish.

The second approach, of which I am a bigger fan, is to give the investor the opportunity to learn how to invest, whether it’s in real estate, notes, or anything else for that matter. Basically, let me teach you how to fish. And with this newly obtained information, the investor can then decide (and take responsibility for) his/her best investment decisions.

With this approach, I typically interview the investor to see what type of investor they are.

Are You a Passive or Active Investor?

Whether someone is a passive or active investor is determined by a few variables, and I use the interview questions in order to make …read more