Is it common practice in note investing for a JV partner to fund 100% of the capital, while the operator contributes deal sourcing, underwriting, asset management, and execution, with profits split so that 70–80% goes to the capital provider and 20–30% goes to the operator?

Quick backstory: CRE finance background and moved to the U.S. from India to chase the entrepreneurial RE investing dream. I started my real estate journey by investing in a hotel syndication… and let’s just say it was a “great learning experience” (translation: it didn’t work out how I thought). The best part? I’m still in that deal 10 years later. So yeah… that one left a mark. That experience basically pushed me into note investing. I went down the YouTube rabbit hole like most people, and that’s where I found Mike Russica @Mike Ruscica (my first guru). He introduced me to the world of 2nd liens. This was around 2020-covid time. Been doing notes full-time ever since. In the beginning, we brokered notes for a couple years — calling literally everyone: banks, credit unions, private lenders… you name it. It kept the lights on while I got reps, confidence, and real-world experience. But I’ll be honest: sourcing the right product to buy has always been a grind (still is). Today we’re 100% focused on investing, not brokering — mainly NPLs across residential, multifamily, and hotels. My first two note purchases were 2nd lien NPLs in Cook County (Chicagoland) back in July 2021. I bought them mostly to learn outcomes and get the full “hands-on” experience. Both were well-secured by home equity. Here’s how they played out: Deal #1:Borrower even had a BK7 on record. We went through the process and got paid back at foreclosure auction in exactly 1 year. IRR: 383% (yes, I triple checked that) Deal #2:This one went re-performing and it still pays like clockwork. Truly passive — the kind of note you almost forget about (in a good way). Matures April 2027 and we’re projecting about 35% IRR to maturity. Thanks to groups like this, we still invest in 2nds — after a bunch more deals and states, the journey continues. And honestly, one of the coolest parts of notes is you can actually help homeowners stay in their homes while still making good returns. That “doing well while doing good” part matters to me.

For U.S. residential note investing, is it best practice to avoid all direct borrower contact (calls, texts, emails, social media) and handle all communication exclusively through a licensed third-party servicer in order to stay compliant with FDCPA, CFPB, RESPA, and TILA? Are there any legitimate exceptions to this rule for note owners, or is a strict “no direct contact” approach the safest standard?

Anybody doing Note investing full-time?

If a note secured by a 2nd (junior) lien is brought to your attention, and during due diligence you discover there are delinquent property taxes and an IRS tax lien ahead of it, do you still consider the deal? Assume: - There is sufficient equity in the property - After accounting for taxes, IRS lien, costs, and timelines, there is still a clear profit margin Would you proceed with the purchase after full due diligence, or is the presence of tax and IRS liens an automatic deal-breaker for you? Interested in hearing how experienced note buyers think about risk, lien priority, and exit strategy in this scenario.