Where to find and buy partials?

[Dan Blaylock]

Are there places where partials are listed for sale? I thought I'd find some here, but I don't see any. Paperstac has had only one that I'm aware of. Other than that, I'm not sure where to find them.

I'm curious for where others may have found partials/JVs.

[Don Konipol]

In my opinion partials are a time bomb.  Here’s why; you’ve got say 8 investors owning varying percentages of a note.  The debtor misses two payments.  3 investors want to foreclose, 2 want to wait another 2 months, and 2 want to provide a 2nd lien to make the payments on the 1st. The last investor is incapacitated, and it’s unclear who has his decision making capacity.  Another example; a note is going to be paid off, the title co needs every note holders signature on release of lien, again incapacitated investor.  Title refuses to release the payoff until ALL partial holders execute release because they are familiar with the problems in getting release from partial note holders.

Someone HAS to have decision making authority and not rely on all partial holders to agree.  Action take. By even a majority can result in minority partial holder instituting legal action, including restraining orders, etc. Btw, I know all this FIRST HAND.

Here is what we do. We are structured as a Series LLC. Each note is a seperate series of the LLC, so it's like its own individual LLC without the additional cost of LLC setup or legal fees or state fees. We are managing members of each series, and make all decisions (we have a fiduciary responsibility to the investors), additionally we investment our own money in every note (series). So, the investor rather than owning a "partial" note owns an interest in an LLC that's only asset is that note. We have Ben operating this way the last 8 years and it's worked flawlessly.