Have 30k, what would you do? - Posted by New2Notes

Real Estate Investing
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Posted by New2Notes on May 21, 2005 at 14:16:00:

Thanks for the reply Michael. I do plan on reinvesting the money if Im able to get quick returns though. As far as investing long term, Id rather have a little more than what I have now. Thats why Im mostly looking for quicker returns, I just want to build more capital.

I was just curious to what others would do, and how they would invest to make more money and quicker returns.

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Have 30k, what would you do? - Posted by New2Notes

Posted by New2Notes on May 19, 2005 at 11:25:24:

Hi everyone,
Just wanted to say thanks first off to all the helpful people here. Ive managed to save a little over 30k now. I want to invest all of this into notes, but Im not sure what would be the most profitable way to do it? I’d like to earn money back quickly to reinvest again. Ive read several books, Tin Can Alley, The Paper Game, and Invest in Debt.

I know what most of my options are,but really, Id just like to know your opinions - what would you all do with this money to get quick returns (a year to a year and a half - or sooner if possible)?

Any advice is welcomed

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Quick Returns are always in Notes… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on May 20, 2005 at 20:55:13:

New2Notes:
Unless you are making loans or JV-joint venturing with others on fixer / rehab properties, the Note business is generally not the place to look to for “quick returns”

Once you have accumulated some capital it can be a great place to INVEST that capital and get it working for you long term.

While its certainly possible to make 15%,18%, 20% + on your money. Think about this; once that capital is returned to you, it often will sit idle earning far less in the way of returns. If you earn 15% but it only over a 6 month time frame, you are now faced with having to reinvest those funds again.

LONGER TERM can often be better- That is why investing in a discounted Note that might safely produce lets say a lower 12% YTM - yield to maturity but where the funds are earning that type of return over a longer period of time and where there is always that possibility that the Note will pay off early thereby POPPING your yield significantly. Longer term discount paper deals can relieve you of constantly trying to find places to park excess cash. Just a thought…

Michael Morrongiello