Oct 2, 2018
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.
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:
BiggerPockets Forum
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:
Aba
Gibson's Steakhouse
Connect with Bob:
Email: bberland@berlandusa.com