High-Yield Debt portfolio returns? - Posted by brandoncbsre

Posted by CaptainPhil on April 14, 2006 at 20:45:15:

I invest heavily in these type of notes. Do yourself a favor and get a copy of my friend David Butler’s “Tin Can Alley” The absolute best resource for this type of investing. Absolutely.

Phil Camenisch

High-Yield Debt portfolio returns? - Posted by brandoncbsre

Posted by brandoncbsre on April 06, 2006 at 21:56:50:

Up until this point I have been mostly a stock and stock fund investor. I like the idea of investing in Real Estate debt more specifically the higher-yielding stuff. Being new, I have just picked up a copy of Cash In On Cash Flow by Laurence Pino and a financial calculator. Now for my question. I feel there is a need for a fund to purchase mobile home paper and seller-carryback notes in my area. I feel that if could buy the notes at 60-70 cents on the dollar it would boost the yield on 10-14% notes quite a bit. Am I out line to think that a $200,000 to $500,000 player can post 20% plus annual returns over an extended period of time?

Re: High Fliers - Posted by David Butler

Posted by David Butler on April 08, 2006 at 17:43:37:

Hello brandoncbsre,

Yes it is… as has been discussed here in many previous threads. You’ll also find some pointed discussion about how those types of yields are obtained.

Here’s a couple of helpful one’s I pulled up using “yield expectations” as my keywords in the search engine at the top of this forum.

Buyer’s: What would the perfect MH note look like?

Wonderful Opportunity!!

Top To Bottom!


You’ll also find a wealth of related discussion using “best yields” as your keywords, and some particularly instructive discussion by John Behle in a number of those posts. You’ll also pump into some others along the way that outline some very good “outlines”. I just can’t think of keywords that will pull those up at this point in time. :frowning:

Keep in mind that the note business, particularly in the prime SFR real estate notes, has become much more competitive over the past five years, so we are often taking on riskier notes to consistently achieve these higher yields. That often includes MH paper that you are asking about (also discussed at great length in existing discussion here); some types of 2nd position paper (also discussed at great length); and business notes (and those are discussed previously here too!:-)… )

Hope this helps get you started up, and Many Happy Returns!

David P. Butler

That equates to more time “managing” the paper than would ordinarily be expected of more passive types of investments.