From House Flipping to Note Investing: Alina Herman's Investment Strategy

In a recent podcast episode, the host interviews Alina Herman, a note buyer, investor, and tech mogul. Alina shares a lesson she learned when she invested in a note on a house through a presenter at a private lending school. The presenter claimed to be an experienced house flipper and collected money from investors to buy houses, but it turned out to be a Ponzi scheme. The escrow account was not real, and the rehab fund was never used for its intended purpose.
Alina's lesson learned is that new investors should not transfer money to the presenter and should keep control of their reserves to avoid running out of funds. Real estate is a problem-solving business, and there will always be problems to solve. This experience led Alina to re-evaluate her investment strategy and focus on note investing where she had more control and was able to work with local buyers and sellers.
Note investing involves buying mortgage notes from banks or lenders at a discount and then collecting payments from the borrower. Alina discusses the benefits and risks of note investing, including the importance of evaluating the property and borrower, and the potential for high returns. She also talks about the role of animal rights activism and her perspective on the flipping business.
According to Alina, note investing is not a passive investment, and there is always some level of risk involved. However, buying trust deeds from flippers can be a good option for investors, as they offer high-interest rate notes (usually 10-20%) that can provide a good return on investment. Alina emphasizes the need for active involvement in real estate investing and the importance of understanding the money side of the business.
To reduce risk in note investing, Alina suggests partnering up as a good option for new investors. This can provide additional expertise and support, as well as reduce the risk of loss. Alina also stresses the importance of thoroughly evaluating the property and borrower before investing in a note, as this can help to mitigate potential risks.
In conclusion, note investing can be a lucrative investment strategy, but it is not without risks. Alina Herman's experience highlights the importance of being cautious and vigilant when investing in real estate. By keeping control of reserves, partnering up with experienced investors, and thoroughly evaluating potential investments, new investors can reduce their risk and increase their chances of success in the note investing market.

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Don't forget to reach out to Alina Herman:
Linkedin: https://www.linkedin.com/in/alinaherman/
Instagram: https://www.instagram.com/alina_herman_coach/

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