Where Are You Sourcing Performing Residential Notes in 2026?
Member since 2026 · 35 posts · 12 votes
Where Are You Sourcing Performing Residential Notes in 2026?
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Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votesWhat I'm seeing right now is that a lot of buyers are still looking for inventory the way they were taught by courses and gurus, which is exactly why those channels feel dried up, because most of those buyers insist on heavy seasoning and most sellers know it, so the same notes get recycled until the yields no longer work. What often gets missed is that groups like ours aren't chasing scraps of seasoned paper, we're brokering and selling performing loans that were originated correctly from day one, and that's a fundamentally different approach. If your buy box requires 12-plus months of seasoning simply because that's what you were told to demand, you're competing with everyone else who learned the same rules and limiting yourself to what's left over. If instead you work with lenders and brokers who actually understand credit, documentation, collateral, and borrower behavior, you can acquire lightly seasoned or newly originated performing notes that still meet yield and LTV targets because the underwriting is strong, not because time has passed. That's how institutional buyers think, and that's where liquidity still exists. When inventory feels thin, it's usually not because performing notes have disappeared, it's because buyers are shopping for safety through seasoning rather than through credit quality. The people still scaling in 2026 are the ones willing to evaluate full files, not just tapes, and who build relationships with originators that care about loan quality on the front end instead of trying to engineer it after the fact.
4 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes8mo
Quote from @Frances Cammack:
Performing notes still pencil at scale, but sourcing channels have thinned out. Forums quieter, broker response slower, tapes drying up.
Active note buyers – where are you finding inventory now?
- BiggerPockets classifieds still viable?
- Specific Facebook/note seller groups working?
- Cold outreach lists (seller-financed deals)?
- Note broker networks (SIC, Note Investor, etc.)?
- Direct from originators/servicers?
- Off-market seller relationships?
Sellers – where are you listing notes currently?
- Craigslist still gets traction?
- BiggerPockets vs LinkedIn vs FB Marketplace?
- Note-specific platforms (Paperstac, LoanMLS)?
- Email blasts to investor lists?
Context: Targeting performing residential 1st position notes – $100K+ UPB, 12+ months current, <75% LTV nationwide. Need reliable seller channels.
One source + response rate from anyone still active would help the group. What's working (or not) right now?
rarely see them here on BP. Facebook groups see some posts but most of our deals come from existing relationships. Sellers I would not do craigslist or FB, way too many window shoppers who would never buy.
If you are getting started, go with paperstac.
7e investments53 Reviews - 8moDoug SmithPro MemberLender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
What I'm seeing right now is that a lot of buyers are still looking for inventory the way they were taught by courses and gurus, which is exactly why those channels feel dried up, because most of those buyers insist on heavy seasoning and most sellers know it, so the same notes get recycled until the yields no longer work. What often gets missed is that groups like ours aren't chasing scraps of seasoned paper, we're brokering and selling performing loans that were originated correctly from day one, and that's a fundamentally different approach. If your buy box requires 12-plus months of seasoning simply because that's what you were told to demand, you're competing with everyone else who learned the same rules and limiting yourself to what's left over. If instead you work with lenders and brokers who actually understand credit, documentation, collateral, and borrower behavior, you can acquire lightly seasoned or newly originated performing notes that still meet yield and LTV targets because the underwriting is strong, not because time has passed. That's how institutional buyers think, and that's where liquidity still exists. When inventory feels thin, it's usually not because performing notes have disappeared, it's because buyers are shopping for safety through seasoning rather than through credit quality. The people still scaling in 2026 are the ones willing to evaluate full files, not just tapes, and who build relationships with originators that care about loan quality on the front end instead of trying to engineer it after the fact.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes8mo
Quote from @Doug Smith:
What I'm seeing right now is that a lot of buyers are still looking for inventory the way they were taught by courses and gurus, which is exactly why those channels feel dried up, because most of those buyers insist on heavy seasoning and most sellers know it, so the same notes get recycled until the yields no longer work. What often gets missed is that groups like ours aren't chasing scraps of seasoned paper, we're brokering and selling performing loans that were originated correctly from day one, and that's a fundamentally different approach. If your buy box requires 12-plus months of seasoning simply because that's what you were told to demand, you're competing with everyone else who learned the same rules and limiting yourself to what's left over. If instead you work with lenders and brokers who actually understand credit, documentation, collateral, and borrower behavior, you can acquire lightly seasoned or newly originated performing notes that still meet yield and LTV targets because the underwriting is strong, not because time has passed. That's how institutional buyers think, and that's where liquidity still exists. When inventory feels thin, it's usually not because performing notes have disappeared, it's because buyers are shopping for safety through seasoning rather than through credit quality. The people still scaling in 2026 are the ones willing to evaluate full files, not just tapes, and who build relationships with originators that care about loan quality on the front end instead of trying to engineer it after the fact.
I agree. The other thing I will mention is people think notes is like real estate - oh I need to find this off market deal because I will get a better deal vs. going to the place where I can find notes. Its a fallacy, they will spend months trying to find something that may exist but most likely also was horribly underwritten with shady pay history. Keep it simple, your pipeline grows from closing deals not facebook posts and mailchimp emails.
7e investments53 Reviews
Direct outreach to tax deed investors works well - they do seller financing but don't want to hold paper. I call cash buyers from county records asking about seller-financed deals. Are you working direct-to-investor angles or just traditional channels?
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