I am looking into investing US Notes. It looks like lots of advantages, very few disadvantage.
Only no refinance from banks for notes is the big one.
Does anyone also invest in Notes? Any comments or suggestions are welcome.
Easy .. Until the payments stop coming. Then you have to involve lawyers and/or the legal system to foreclose . Not worth the hassle in my opinion unless
a) you are down in a certain city anyway, AND
b) know the city well AND
c) don't mind spending $12,000 and six month to chase a $35,000 note, AND
d) don't mind owning the asset or executing a judgement / a court order ie taking possession of used vehicles or other personal property of the borrower in lieu.
Why not invest in second mortgages in Canada - available from quite a few mortgage brokers ?