Mailbag: Would you recommend I get started in notes by doing JVs?

QUESTION: Would you recommend I get started in notes by doing JVs?

ANSWER: I am of the opinion that putting up ANY of YOUR OWN money to fund a JV as a means of “learning and earning” is a mistake if you don’t know what you’re doing yet.

That said, “learning and earning” is great. Just not that way. Instead, I would strongly recommend acting as a “bird dog” or finder and then referring the notes you find to an institutional investor for a fee. Depending on the purchase price of the note, referral fees can range anywhere from $2,000 to $10,000 and you are using other people’s money because the investor is putting up all of it and taking all of the risk. This way, you are earning $ but, more importantly, not risking anything AND at the same time you are learning what’s good, what’s bad (what the professional buyers like or don’t like and why) as well as the entire due diligence/backend process so that after you do a few of these transactions, you will be MUCH better prepared to invest in notes for your own account.

I’ve been working with new note investors for 20 + years, matching them up with the right funder depending upon the types of transactions they want to refer. Funders are always looking for deals. Also, I fully agree in that you need a “guide” especially in the beginning if you’ve never done this before.

If you’re looking for the very best, most affordable educational program available today that will teach you how to do this…. while enabling you to make money while you are learning, look no further than this one.

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