Posted by John Behle on March 16, 2006 at 12:51:50:
There are exuberant masses in the paper business also. But, that doesn’t mean much. The important thing about competition is how good is it. If they are riding ten speeds and you have a Honda V65, that’s what’s important.
The average wanna-be paper investor is even less trained than the average wanna-be or new real estate investor. So, the competition is not a big factor, it’s how good are they, how good are you and can you even work with them as an asset.
It’s about the training. Most of those trying to do the business have a very light and un-realistic training. Sometime their training is even from people that have never even done the business. If you get good training - like from those in this forum - you can be highly competitive and make good profits in this industry. Anything from Terry Vaughan, David Butler or Michael Morrongiello will give you a good education.
Donna Bauer is good too. I haven’t read her course, but I did meet her about 16 years ago when her mentor and employer Jay Swob sent her out to take my 5 day training. I was very impressed with Donna and I’ve known Jay a long time. So, I know her education is good and she has had some wonderful experience working with Jay and since then. Based on that, I would assume her course is very good. If it wasn’t, I think I would have heard that.
Coming from the background of a real estate investor, Michael Morrongiello’s course might be the first step. Michael has a great background in both areas and my understanding of his “Unity of Real estate and Paper” course is that it talks about not just paper, but how to use paper in real estate transactions, etc. Terry and David also cover those types of subjects. Donna’s course is more likely just geared towards brokering notes and probably covers areas of buying “Bad Paper” which is one of Jay Swob’s specialities.
As far as comparing paper, I wrote an article some years ago titled “A Loanlord’s Lament” which highlights some of the pros and cons of both real estate and paper. As far as my background, I started in real estate and found paper to be much more attractive. The article is at: http://www.papergame.com/article019.htm
There are more articles at that sight and several published here in this forum also. Two others that might be of interest that are published here are:
Real Estate Paper: Your Most Valuable Tool
Four Tips to Be a Real Estate Paper Pro
Those should help to get a good perspective of paper investment versus real estate and how they work together. In addition, if you read the archives of this forum, you will find more information than almost any course that has ever been published on paper.