A note investor success story.
How do you go from corporate job, to full time note investor, with funds throwing money at you?
Paul Birkett went from working at PepsiCo to running a highly successful note investment firm trading millions of dollars in mortgage loans– and he did it in just a few years!
So, how did Paul fall into the note business? How did he get the attention of big note buyers and sellers? What types of deals is his firm doing now?
Sorry, this audio has gone into the vault. See what’s included with a DistressedPro membership.
A Note Investor Success Story & The Pepsi Challenge
We’ve all heard of the Pepsi Challenge right? The taste test that’s now been running since 1975. When it comes to making money and investing all of us have probably done a little taste testing of our own. It’s how we find out what we like, and don’t, and what works for us, and doesn’t.
Paul Birkett definitely knows something about the Pepsi Challenge. He used to have a corporate job with the firm. Then on a trip to SW Florida in 2010, he picked up a real estate magazine, and realized how amazingly cheap US assets were. The returns available far surpassed what he had ever found back home in Europe.
He began with buying up single family rental homes. On hitting 40 doors Paul quickly realized that even with property managers he was still working nights and weekends to manage his portfolio. He determined that just wasn’t scalable. Not for those wanting to build a real business or passive income portfolio.
While trying to buy a short sale he accidentally discovered the note buying business. That is the ability to buy and privately hold mortgage loans. It wasn’t long before Paul was scaling from buying $300k worth of loans to $4M+ at a time.
Note Investing: “It’s a Reputation Business”
Today Paul Birkett is the co-founder of Automation Finance, a first and second lien note investment firm, which buys, manages, and sells non-performing loans.
At the time of recording this podcast Automation Finance had around 1,500 assets under management.
Paul credits this traction and success to the reputation built, and dedication to building systems. It’s also clear from this interview that he has remained committed to finding a way to add value and serve others. The bank, GSEs, big funds, and regular private investors have all needed this service, and someone who has the operation infrastructure and dedication to do real due diligence.