New member to biggerpockets. I truely believe that Real Estate is one of the best tools to create on going wealth.
Currently as I am starting out, I am only interested in generating ongoing Cash Flow. After doing extensive research, I feel Mortgage Notes meets my demand.
I don't plan to broker any deals. I want to buy and hold to get cash flow, or buy and sell notes.
Before I do, I have alot of questions in my mind. Please note that I am from Long Island, New York.
I believe we don't need a license to buy and sell, Can someone confirm?
I want a site that has alot of information about notes so I can learn. Anyone has any suggestions...
I want to start out small deals first. $100 - $300. Is this even possible? I prefer to learn the mechanic rather investing head first in a large deal...
Are there brokers out there that represent us, if so what are the general fees? I am assuming if I am buying .. it should be "free" as the seller would pay commision...
What is my ulimate risk here? I belive its just my principal invested. Nothing more then that...am I right?
Say I buy a note and start receiving cash flow.... and for some reason the person stops paying... who is responsible to follow up and receive payments? Me? Or is there a process that does that for us?
Obviously I am sure if they don't pay ... I can evict them .. and their property becomes mine...
Where do we go buy these notes? I am sure banks sell them, but are there any good websites that people you to search for deals?
What is the turnaround time to get the deal? In real estate, when you buy a house it can take 3months - 6months. Sometimes its done faster. What the timeframe here?
I know I asked alot of questions, so if anyone interesting in answering them would be great!
If your a broker, reply to this post and leave your email. Like to get this process going ... but I need to learn and understand the system!
Also looking into CMO and CDO as well ...
Welcome to BP.
Well, I think all these questions have been addressed here before, might search the note threads and start reading so those that do know the business don't need to retype basic information for every passing post.
You question as to 100-300, are you saying 100K notes or a hundred bucks. If you ever found a note for a hundred bucks I'd bet it would be about $1,000 over priced to clean up some mess, if you were lucky. Are you even talking about RE notes?
There`are also threads on introductions and tips on posting, might introduce yourself and see the best way to form questions for the best responses from members, short, sweet and specific.
There's probably enough here on BP to keep your reading about notes all summer! Good luck :)
If you are talking $100 to $300, if you listen to BP podcast #29 you can try "lending club" or "prosper. I haven't tried that yet, but may in the future.
Hi @Hrushee Sangani . Please don't take this the wrong way, but based upon the questions you're asking it sounds like you might want to spend some more time learning about notes before jumping right in. You're not going to realistically find a note with any value at $100-300.
If you want to take a look at some sample listings try FCI Exchange.
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