Are these the biggest risks when buying a note?

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Posted by srj19 on January 29, 2009 at 01:28:16:

My father and I are looking to begin buying some notes, I've studied Donna B's material, but have some questions.

It would seem the biggest risk in note investing is that A: You have bought a note that was actually in a subordinate position OR B: You bought a note and the collateral (the property) doesnt have the market value you thought it did (could be due to the unknown internal condition of the property, or the property was massively trashed by the owner since your note purchase, or as in recent times: the note you bought at a nice discount at market top, is now secured by a property worth about what you paid for the note....

How do you guys minimize these issues?


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