New to Notes

[Linda Willis]

I signed up with a company to submit performing notes. I did submit a note but the seller did not accept the offer. I have since stated going on line and finding other places to submit.

Is this the best way to go about building note buyers? Also, I have a list of seller financed properties and created a brochure with an application (happy to share with you to get your opinion) should I simply send the brochure? 

Craigslist was a complete bust in finding sellers or buyers. 

[Bill Gulley]

Are you familiar with mortgage brokerage laws?

Not saying you're in violation of anything, but could be soliciting mortgages if the money isn't all your own funds.

I didn't really understand what you meant by "submit performing notes" sounds like some site was saying submit offers got a spin in terms, but I get it, I think, you're looking for notes to purchase or acquire.

My concern, initially is actually dealing with your own money, as most starting out try to buy and then flip the note, which is brokering, and your asking for buyers indicates that.

Speed is pretty much a syndication of traders that I believe trades pretty much between themselves in a limited market.  Further, it's a guru training, dealing in notes as if they were flapjacks, poor due diligence, structured market and chains and I'd bet not much financial training or risk analysis.....those I've read addressing the "program" lacked expertise but thought they knew. That indicates teaching what you want your buying and selling clients to know, led to believe and avoid critical matters.

The biggest critical matter is that you can't buy and mortgage and flip it for a profit, trading in notes as a business without a mortgage brokers license. This has far bigger teeth than wholesalers dealing in dirt, and using other peoples money is a great way to get a ticket to go to jail. Using the mail, and not being compliant in brokerage laws is a good way to open the door to mail fraud, dealing illegally is misleading others.

On the internet, you'll find dealers, buyers, sellers and illegal brokers telling you everything is legal, actually, they can't know as each state has its own requirements and in addition, you have federal aspects. Most keep a low profile if they are aware, many simply aren't aware of compliance issues.

As to sources for notes, you list of seller financed notes is or could be a great source, you can find these at the courthouse. Dealing in notes as also best locally, you can manage the collateral aspects.

Not sure of your training, you might be an expert dealer, could be, but then if that's the case you'll know that those SF notes were probably made with inflated sale prices. You also need to weed out new notes that may have been originated illegally. Older balloon notes may pop without the ability to refinance, just because a SF note is performing is not all to examine as buying, the question is more to expectations.

Mortgage servicers are a good source for notes held where a holder is willing to sell.

I'm leery of CL, not reliable, scams of all kinds, you'll likely find chains and illegal brokers.

You need to do your due diligence on brokers as well, if you're dealing directly with a note holder, that always best, brokers can pass of almost anything, you also didn't mention buying with recourse, at least limited recourse. Most brokers I've seen on the internet act more like gatekeepers than allowing in depth due diligence, so, beware. :)