How do I find serious (professional) note buyers for Gary, IN mkt?

I have a brick 4-unit rental property under land contract since 2007 but the owner wants to be bought out ASAP. Sometime around the beginning of 2011 I posted an appeal on BP for a notes buyer to look at this property and "take over the note" from the seller as it produces good positive cash flow. I really want to keep it and can't find the cash or loan from banks.

I received about 4 responses out of which 2 were serious (in my estimation). Both leads came from BP. One of the responders seemed a bit more aggressive and focused and I pursued it and connected him to the seller. He seemed serious - sometimes calling twice a day. I was more impressed with him than the other notes agent who seemed hesitant and was low-balling. He asked for payment records and deeds and all kinds of docs which were provided to him. At the point we were expecting to simply proceed to closing, the guy stopped calling. Dropped out cold. No explanation. Won't respond to my inquiries to date. I hope he's reading this. I was appalled.

We took on the 2nd guy. He asked for different things, we paid for appraisals, then revised his offer downward. I was surprised that the seller agreed to his even lower offer. Provided proof of liens clearance and property insurance and the 2nd guy went AWOL as well for over a month now. No explanation. Won't return calls or emails.

I am frustrated at how shady these guys turned out to be. No sense of professional pride, not even to a fellow BP'er. I feel sorry for the seller. I WANT THE PROPERTY and have invested a significant amount of money to upgrade the plumbing, heating & electrical systems and replaced all the windows. It still needs a few things but it's a solid investment and a beautiful property worth (conservatively) $75K even in this mkt.

He was willing to accept ~ $40K buyout and these clowns (sorry!) played around with our time and efforts and melt into the darkness.

What does it take to find a serious notes buyer in this market? Any ideas?

Jeff Sielicky

Real Estate Investor · Portland, Oregon

721 posts
6 awards
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Oct 12 '11, 04:40 PM

It sounds like a note that would require either a short-term or a significant discount to appeal to a note investor. If you can't get bank financing now chances are you won't be able to cash out the investor in several yrs. For a longer term the discount would wipe out most, if not all the equity.

Gil Barden

SFR Investor · Kansas City, Missouri

14 posts
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Oct 12 '11, 09:09 PM

Well, that is some tough love. :(

Sorry to hear the drama. What I have found over the last few years, well the last 12 years since I have been doing this is there is always a lot of talk, but few perform.
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Edited: 10/12/2011 at 09:22PM by Moderator : No advertising in this forum, please

Marc Faulkner

Note Investor · Kalamazoo, Michigan

Pro Basic

1,051 posts
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Oct 17 '11, 07:56 PM

Chris-I am also sorry to hear about your experience in trying to help the holder of your note sell it. I am not sure who you worked with here but, I can tell you that the biggest problem is the Gary stigma and there are no institutional note buyers that will buy in that area right now. The second problem is that any one that might buy the note is going to demand a discount from the balance that you currently owe the note holder. Most likely your note holder/lender is not looking to discount the balance of what you owe them much.

Leslie A.

Real Estate Investor · Houston, Texas

92 posts
2 awards
50 influence

Oct 28 '11, 07:34 AM

Chris,

I'm sorry these people did this to you. I had the exact same experience with a person who claimed to be a note buyer (end buyer-not a broker) that I met on BP.
If I'm ever in that position again, I will require earnest money before anything beyond basic documents are provided.
If you want, send me a PM with the name of who it was - I'm curious if one of them was the same guy I dealt with.

Dion DePaoli

Note Investor · Fort Lauderdale, Florida

Pro Basic

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Nov 12 '11, 02:52 PM

Chris, frustrating experience it sounds like.

It wasn't clear what the balance of the note was nor what type of interest the note had. I do not fully agree with all the replies that a further discount on the note is required. It sounded like there is a little equity in the property. That being said, Gary is not high on the list of attracting investors. If the payments have been made on time with good consistency then perhaps what you want to target is an investor who is interested in the yield coming from that investment.