Invest in Debt
Investing in debt sounds strange, but the concept has been popular as long a borrowers and lenders have been around; from biblical times even. Banks and other lenders grow rich by understanding the time value of money and how to profit from it. A few private investors have also figured out how to make it work for them. Tax liens, Real Estate Contracts, car notes, and owner financed mortgages are all examples of debt investments. A pawn shop is an investment in debt. In fact, any future cash flow which can be bought or sold today is an opportunity to invest in debt.
Most people put their investment funds into a CD, mutual fund, or stocks and let someone else manage it for them. To invest in debt successfully requires an active investor willing to study and learn. It also helps to have a network of seasoned investors who can provide a reality check, critique your plans, and suggest possible solutions for the problems you will encounter when you make unusual investments.
Some of us who live in Albuquerque, New Mexico have been meeting once a month for the last 20 years to talk about debt investing. We don't advertise, have an agenda, have officers or dues, or do anything in a formal way. However, the attendees have such a diverse background in private debt investments, it is the only place I know where members considering unusual debt investments can get suggestions and advice for how to make their deals safer and/or more profitable.
If you would like to attend, listen, learn, and contribute to the ABQ Invest in Debt group you are welcome to attend a meeting. You can read about some of the members here.
The Invest in Debt Forum is a new website feature which we expect to use to improve member networking and communications. You must register before you can post comments or questions. We will be adding more categories as we go.
As the recession in the housing market continues, interest in owner financing of real estate sales is growing. When there doesn't seem to be any way to sell your house sellers are forced to accept terms they would never consider in better times. The market for buying and selling owner financed notes and mortgages has become more active and looks like it will stay that way for some time.