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  • Writer's pictureJohn Casmon

How to Get Started in Note Investing with Bob Berland, Episode 66


More often than not, we wear many hats in our lifetime, but only a few can say that they have worn the hats of an Olympian, coach, entrepreneur, and investor, but one person who can is Bob Berland. In the 1984 Olympic Games, Bob brought home a silver medal, which remains the highest finish of an American in Judo history. He brought home another bronze medal in 2004 Olympic Games, as the team coach. Today, he is the 3rd generation president of his family's printing business, but he is also a note investor, a less common investment vehicle. Backed with 10 years of note buying experience, he willingly shares his thoughts and approach to note investing and how others can get started with this passive investment vehicle.

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Key Market Insights:

  • Bob is the 3rd generation President of Berland Communications

  • Began training in Judo at the age of 9

  • Silver medalist during the 1984 Olympic Games in Los Angeles, California

  • Coached the team during the 2004 Olympic Games in Athens, Greece

  • Has been investing in first position liens notes for 10 years

  • Focuses on single families and small multifamily properties in nonjudicial states

  • What is Note Investing? - Investor plays the role of the bank and holds the mortgage

  • First position liens vs Second Position liens

  • First position liens, an investor has the first right to the property; Second position liens, a bank or another entity holds the first right of the property

  • Notes: Performing Notes, payment is constant; Non-performing Notes, payment is ceased or is falling behind which may lead to foreclosure

  • Current Strategy: Buying first position performing notes - safest approach and ROI is more certain and faster

  • Notes are readily available, however, it is usually offered at par, not at a discount

  • Assessing borrowers: Owner-occupied property, protection lies on the value of the property, more so than the ability of the borrower to pay; Fix and Flip, a credit check is necessary

  • Tip for Beginners: Dig into the note world, look for opportunities, and be cautious.

  • Opportunities for New Note Investors: Seller Carry Back, Partial Notes, Note Funds, Note brokers Small First Position Lien Notes

  • Easiest entry is through a note fund

  • Market: Non-judicial states - fast and easy foreclosure process

Bull’s Eye Round:

Win on Note Investing: Do your due diligence.

Tracking Market Changes: Look at the property of the value. Market changes are not as relevant.

Daily Habit: Work out every single morning.

Book Recommendation:

The Girl With Seven Names by Hyeonseo Lee

Resources:

Tweet this:

“The first step is to take action. You have to jump in.”

“Compounding is the holy grail.”

“You make money on the buy.”

Places to Grab a Bite

Connect with Bob:

Email: bberland@berlandusa.com


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