Northern Colorado Monthly Meeting: The 6 Niches of Real Estate Note Investing

October 12, 2017 @ 5:45 pm – 8:30 pm
Best Western - Loveland
5542 US-34
Loveland, CO 80537
Free to Members & First Time Guests. Subsequent meetings are $25 per individual

Perhaps we can take a page from those who like to keep their hands clean and out of the rehabbing and landlording business to be truly passive investors!

By popular demand, because we asked and you answered, we are spending the month learning “The 6 Niches of Real Estate Note Investing,” and we're bringing in the  go-to expert to get the job done. Joe Varnadore of Colonial Funding Group is as seasoned on the subject as anyone we know!

For those of you who have been around the block, you may be asking, “Why Would a Seasoned Real Estate Investor Need to Be in the Mortgage Backed Note Business?”

Well, we’re glad you asked.

As a seasoned real estate investor you understand that you make your money when you buy and that is why you need to buy at a discount. The most common “discount buying” strategies are:

  • Short sale
  • Foreclosure sale
  • REO property
  • Tax deed sale
  • Probate sale

You, of course, realize the profit from your discount buy when you apply your pre-planned exit strategy. The most common exit strategies are:

  • Wholesale
  • Retail (fix and resell)
  • Fix and Rent
  • Lease Option

New government regulations have forever changed today’s real estate market. The repeal of the Glass-Steagall Act, and the implementation of the Dodd-Frank and SAFE Acts have forced lenders, buyers and investors to adjust.

To simply continue to pursue the above discount buying strategies and exit strategies will severely limit your investment opportunity and profit margins.

These adjustments have created both challenges nd opportunities. The problems the seasoned investor faces are:

  • Lack of inventory
  • Rising prices
  • Increased competition
  • Falling profit margins
  • Increased landlord issues

The opportunities that have been created are primarily in the finance side of the real estate business. The finance side of the business is the note industry. This is an opportunity that the seasoned investor can easily add to their current skill set because the investment philosophy is the same: buy at a discount with a pre-planned exit strategy.

The opportunity of adding this part of the real estate industry to your existing business is:

  • Record high national inventory
  • Up to 70% discount buys
  • Way less competition
  • Huge returns on investment
  • No landlord issues
  • Dodd-Frank exemptions
  • Government funds can pay you
  • Passive income streams
  • Lump sum payout

A Real Life Case Study with Amazing Results…

…a very seasoned REO specialist yielded a 322% return in one year, on one deal!

This Investor purchased an $85,725 non-preforming note for $10,862. Now that’s a discount. In addition, he had to pay off some other liens, which totaled about $1500.

Since the owner was still living in the property and wanted to stay, our student modified the $85,725, 8.84% loan to a $52,000, 7.75% loan. This reduced the property owner’s payment from $617 per month to $358 per month.

In exchange for forgiving the debt and modifying loans, these special funds pay up to a certain amount back to the lender. In this case, our student is receiving a check for $30,000 from the state!

The raw numbers:

  • Paid out $12, 362
  • Received $30,000 plus a $2000 reinstatement fee
  • Will also receive $358 per month for 30 years

THESE NUMBERS MAKE SENSE & PROVE THAT OCTOBER’s MEETING WILL BE A HOME RUN at ICOR’s Fall Classic! Save the Date, and bring lots of paper for NOTES!



5:45pm - Registration opens

6:30pm - Sharing Success / Haves & Wants

7:00pm - Main Meeting

8:30pm - End of Main Meeting/Continued Networking


Cost: Free to Members & First Time Guests. Subsequent meetings are $25 per individual