How Note Investors Earn a Return & The 3 Parts of a Note Business with Jamie Bateman
Jamie Bateman is the founder of Labrador Lending. Jamie has been an active real estate investor since 2010. He is an experienced real estate investor and business owner who has been actively buying and selling mortgage notes since early 2018. Jamie provides a high level overview of note investing, including the three parts of a successful note investment business: acquiring, holding, and servicing. He also discusses some of the unique risks and benefits associated with the investment. If you’re interested in finding out how to take advantages of note investing, this episode is a must-listen!
[00:01 – 09:59] Opening Segment
- Jamie teaches us about how note investing works
- How note investing offers a higher return than prevailing interest rates on mortgages
- He and his business partner have scaled their business to invest in a variety of note types
- He discusses how someone can get started in the note space by reading, listening to podcasts, and networking
- He shares that it is more difficult to find notes than it is to find real estate, and it can be more capital intensive to get started
[10:00 – 25:42] The Importance of Synergy weith Note Investing
- Jamie points out that note investing work synergistically with real estate investing
- It’s just another facet and a niche
- Most people are not familiar with it
- He explains that a non-performing loan can be turned into a property with value-added, typically through a fix and flip or through working with the borrower to create a repayment plan
- There are different ways to exit a non-performing loan, including through foreclosure or deed in lie
- Interest payments on a non-performing notes investing, and it’s important to have quality partners who you can trust
[25:43 – 35:11] Closing Segment
- Quick break for our sponsors
- The first step to growing your wealth is tracking your wealth, income spending and everything else about your finances, you can start tracking your wealth for free and get six free months of wealth advisor. Learn more about Personal Capital at www.escapingwallstreet.com
- What is the best investment you’ve ever made other than your education?
- Jamie says that his best investment is his non-performing note that turned into a long-term rental that he still holds today
- What is the worst investment you’ve ever made?
- He went to crowd funding but he didn’t do enough research on the operators
- What is the most important lesson that you’ve learned in business and investing?
- He says that business is a team sport, you don’t have to do it all yourself. Look to other people that you can trust.
Connect with Jamie Bateman through his website: Labrador Lending, LinkedIn, From Adversity to Abundance
Invest passively in multiple commercial real estate assets such as apartments, self storage, medical facilities, hotels and more through https://www.passivewealthstrategy.com/crowdstreet/
Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms.
Join our Passive Investor Club for access to passive commercial real estate investment opportunities.
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Tweetable Quotes:
“It’s a team sport. You don’t need to have all the answers yourself. There’s always going to be a tension between having enough information to taking action and taking on too much risk.” – Jamie Bateman
“Passive note investors can work with active note investors. It’s a spectrum, it’s not black and white. There are many ways to approach note investing, just like there are in real estate investing.” – Jamie Bateman
“I actually do believe, if I have an internet connection and a laptop and a phone, I can be a note investor.” – Jamie Bateman
About our Guest
Jamie Bateman
Jamie Bateman has been an active real estate investor since 2010. Jamie is an experienced real estate investor and business owner who has been actively buying and selling mortgage notes since early 2018. During this time, he has acquired over 75 mortgage notes with principal balances in excess of $3M with collateral across 20+ states. Jamie manages several small businesses and a multi-state rental portfolio worth over $3M. He has hands-on experience overseeing construction projects and managing properties. Jamie also has work experience in both the title and mortgage industries, having worked for years as a real-estate settlement officer, notary, and mortgage funding manager. Jamie has held numerous leadership roles professionally. He led a company as a Captain in the U.S. Army and served his country while deployed to Iraq. Jamie maintained a high-level security clearance with the U.S. Department of Defense until resigning to focus on investing full-time.
Jamie values integrity, consistency, and transparency. He takes pride in assisting those who are motivated to incorporate non-traditional investing strategies into their wealth-building plan. He also recognizes that sometimes homeowners come across challenging circumstances that necessitate creative solutions to help them stay in their homes.
Jamie loves to spend time with his family. A former collegiate lacrosse player, he also enjoys learning, leadership, faith, fitness, bourbon, fantasy football, and coaching youth lacrosse.
