Note buyers for owner finance buyers without socials

Private Lending & Conventional Mortgage Advice
1yFollow

Note buyers for owner finance buyers without socials

Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

In Texas there are quite a number of people with work permits that do not have socials. In the event that a seller was to owner finance a property to a buyer without a SSN, is there a market for the Note to be sold to a note buyer?  I have heard from a number of Note buyers that they would want the buyer to have at least 580 credit score. This does not seem realistic to have a credit score of 580 if a person doesn’t even have a SSN. 
Has anybody found a workaround for this or would the seller simply have to hold the note long-term without the option of selling it?

2Reply
20 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y

when I was buying notes I did not even run credit.. but I only paid 10 to 20 cents on the dollar. 

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
3Reply
See this reply in the discussion

7 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    when I was buying notes I did not even run credit.. but I only paid 10 to 20 cents on the dollar. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    1y
    Quote from @Jay Hinrichs:

    when I was buying notes I did not even run credit.. but I only paid 10 to 20 cents on the dollar. 

     Well, it sounds like you was tearing it up.  If you know where any more notes are that can be acquired for $.10-$.20 on the dollar please let me and I might change my business model to a Note investor. :-)

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Joe S.:
    Quote from @Jay Hinrichs:

    when I was buying notes I did not even run credit.. but I only paid 10 to 20 cents on the dollar. 


     Well, it sounds like you was tearing it up.  If you know where any more notes are that can be acquired for $.20 on the dollar please let me know and I’ll be interested in those that you do not purchase. :-)


    back in the day and not a big deal flow.. and all land contracts on bare land.. to put it in perspective. :)
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Patrick Roberts
    Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    1y

    Do these borrowers have ITIN's at least? Without an ITIN/SSN, I'd be worried about running into KYC/AML violations, fed tax liens, the borrower being deported, lien enforcement, etc. Ultimately, it's difficult to confirm the identity of the borrower. This is not something I would take a risk on, but maybe others would. I'm not an SME on immigration law, but I know that you can get burned pretty badly if you run afoul of OFAC and AML stuff. 

    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y

    Similar to what Patrick stated - most have ITINs and have seen a lot of loans like that and those are sold many times on secondary market. 

    if not I know people who still originate I would say they are tougher to sell on secondary market but there are still buyers

    Re: jay comment - price of notes has doubled over past five years on many loans - especially defaulted or loans with some hair too them. 

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    1y
    Quote from @Patrick Roberts:

    Do these borrowers have ITIN's at least? Without an ITIN/SSN, I'd be worried about running into KYC/AML violations, fed tax liens, the borrower being deported, lien enforcement, etc. Ultimately, it's difficult to confirm the identity of the borrower. This is not something I would take a risk on, but maybe others would. I'm not an SME on immigration law, but I know that you can get burned pretty badly if you run afoul of OFAC and AML stuff. 


     Yes, they do have ITIN #.

    1Reply
  • Joe S.Pro Member
    OP
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    1y
    Quote from @Chris Seveney:

    Similar to what Patrick stated - most have ITINs and have seen a lot of loans like that and those are sold many times on secondary market. 

    if not I know people who still originate I would say they are tougher to sell on secondary market but there are still buyers

    Re: jay comment - price of notes has doubled over past five years on many loans - especially defaulted or loans with some hair too them. 

    Yes they do have ITIN#.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free