[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.
You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]
Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.
I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
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Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.
I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.
Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.
