Investing in Note Funds with Dave Van Horn, Episode 119

Since 2007, Dave Van Horn has served as President and CEO of PPR Note Co., a holding company that manages several funds that buy, sell, and hold residential mortgages nationwide. Dave has raised over $100 million dollars for both notes and commercial real estate and also owns a considerable portfolio of residential investment properties, as well as various commercial holdings.

In addition to his investments and role as CEO, Dave’s biggest passion is teaching others how to build and preserve wealth. He shares how he helps investors stay in their homes, how he’s on track to build a billion-dollar company, his most rewarding piece of real estate and why he believes in helping others get what they want.

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Key Market Insights

Launched PPR Note Co in 2007 with a group of friends
Leveraged experience from over 20 years of syndication into note investing entering 13th year
Had one source starting out and started learning more and working with JV partners
Started out with junior liens – business plan is a modification of payment
First lien you need to exit the deal through the property
Junior liens are usually home equity line of credit or second mortgage
Multiple exit strategies: forbearance, foreclosure, modification, deed in lieu
In a down market there is an abundance of product, with great margins
In an up market, there are less deals, margins are slim, but the exit is easier
Once you get 12 months of payments, the non-performing note becomes a performing note and the value increases
Goal is to be a billion-dollar fund in less than 10 years
Note Fund vs. Multifamily Fund: Notes can be turned more quickly and are liquid, multifamily has tax advantages
Most rewarding real estate is a recovery house
Hopes to raise $100,000 for the homeless
Tips to start note investing today: get a coach, get performing note
FB and BP groups on notes – hard money lending
Invest in what you know for notes