The official cash flow note thread

[Go Getter]

I'd like to learn more about this topic, as I think others would as well. Dirago, if he's watching, seems to know the most, or at least a good deal on the subject.

I've been involved in the Stock market for many years, but would like to find something more consistant. What're some good books, because I'd like to read more about this.


Does anyone have any stories to share?

- Nate

[MarcNV]

On cash flow?

Make it pencil.

[Go Getter]

what?

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I'd like to know if anyone ordered Russ Dalbey 's course, and if they've been able to make it work for them. Not sure how I would get involved in this business on my own. I have no connections, so I would be starting with nothing here.

[86JR]

So you want to go into real estate lending ? Not sure i really understand your question ?

[Go Getter]

Real estate lending? How did you get that? I wouldnt be lending anything, Id be buying/ selling notes. I don't know much about it, I was hoping to see others here on L4P that had experience in this.

[PebbleBeachCaddie]

Nate, since I know very little about dealing with cash flow notes, I simply want to caution proceeding with any idea derived from an infomercial... Russ Dalbey's course in particular may as well have a warning label all over it. I'm not saying there aren't possibilities surrounding your interest, but simply advise staying away from infomercial gurus, I'd hate to see anyone waste time or money on that. Just my $0.02.

[lookkg386]

Nate, since I know very little about dealing with cash flow notes, I simply want to caution proceeding with any idea derived from an infomercial... Russ Dalbey's course in particular may as well have a warning label all over it. I'm not saying there aren't possibilities surrounding your interest, but simply advise staying away from infomercial gurus, I'd hate to see anyone waste time or money on that. Just my $0.02.

Gotta agree. Cash flow is pretty simple math. Future cap rates, LTV ratios, interest rates, well, that's an entirely different story.

[ItsThatEasy]

PM sent.

[Spencer]

I've transitioned my real estate business from property to distressed debt/note investing over the last few years. Currently manage an LP buying/managing non/sub performing residential deals. I also do some consulting on the side, and have a good friend who teaches new guys in the biz (PM me for contact info).

Few thoughts

- Very capital intensive business if you are buying as a principal. Financing is VERY hard to find, unlike with property investment. If you can't raise large amounts of money, not a good business to be in.

- Educating yourself on the differences between paper and property investment is KEY. There are a ton of pitfalls that can result in big losses if you are not careful. And education from Mr. Dalby is NOT what i'm referring to. He makes big money selling junk info systems, and probably none investing in debt/paper.

- Who you know in the business is key for deal flow. My advice is to not attempt to chase seller financed note deals.

- If you have a 9-5 and are just looking for a lucrative investment, invest as an LP in a fund, and let a professional manage the deals.

If you have any other questions, shoot.

[silversurfer]

^^^ great answer ^^^

Nice to see some good content here.