New to Notes. Can I Use This to Find Deals?

15 Replies

My experience with notes has only been in creating them on owner finance deals. I am looking at them now as a means to buying more properties at a discount.

Rather than trying to find the owners of vacant properties that are going to auction (which has very often been a fruitless endeavor), I wonder if it would be possible to just contact the bank, buy the non-performing mortgage, foreclose, and then rehab and sell the property. 

Is this a do-able strategy? What is the likelihood that the bank will sell the note? Who would be the right person at the bank to ask for to discuss their NPNs?

Thanks for any replies. 

Hard to buy a specific note, especially as a street level investor.  1000's of others have thought of/tried this before.

can be done but pretty tough unless you have some super connections and the banks is a portfolio lender.. I had success buying defaulted notes direct from Consumer credit type lenders  Household finance type companies.. but the big banks sell this paper in bulk in big tapes... but if its a local Texas bank and they will talk to you then its possible.

Definitely possible. That's about the only way I'm able to find the deals I've purchased.

There are also options like RSI, PPR, NoteLinQ, etc.

So, with a company like RSI you sin an NDA, they send you a spread/tape (list of assets) you do due diligence, then you make an offer of something looks like a deal to you.

They'll counter, or not, and you go from there. 

With a company like NoteLinQ, there's a buyers upfront 'premium', I guess you could call it, to bid on an auction of notes. I believe, the plan is to refund that amount to you after you bid, and 'win', your first deal. So, really not a bad deal there.

Anyway, NoteLinQ is like eBay for notes, I guess you could say.

Both. Depending on where you're buying from. 

Originally posted by @Ram Gonzales :

 I wonder if it would be possible to just contact the bank, buy the non-performing mortgage, foreclose, and then rehab and sell the property. 

 You will not be able to buy a single from any of the big 5 banks, they kinda have a minimum in the >$10B range ;-)

Like Chase mentioned, you can buy singles from the hedge funds and credible brokers. Unfortunately most of the notes in this realm are leftovers from larger trades so they may have more hair on them. Money can still be made from them, via FC>Flip or doing a loan mod with the borrower who wants to stay in the home. 

I've also come across some tapes with just REO properties at wholesale prices. With these the FC is already completed and we are just getting a quitclaim deed then listing them with a local agent for sale. Some investors will keep them as rentals or provide seller financing via Contract for Deed.

Originally posted by @Chase Thompson :

So, with a company like RSI you sin an NDA, they send you a spread/tape (list of assets) you do due diligence, then you make an offer of something looks like a deal to you.

They'll counter, or not, and you go from there. 

With a company like NoteLinQ, there's a buyers upfront 'premium', I guess you could call it, to bid on an auction of notes. I believe, the plan is to refund that amount to you after you bid, and 'win', your first deal. So, really not a bad deal there.

Anyway, NoteLinQ is like eBay for notes, I guess you could say.

 I see NoteLinQ is located in Orland and the contact is [email protected] is this Robbie's enterprise?

Hey @Bob Malecki it is Robby's enterprise. It actually launches to the public in 2 weeks.

His goal is having collateral on hand, vetted deals, before they even see the light of day. 

We'll see if he's able to pull it off. 

Originally posted by @Chase Thompson :

Definitely possible. That's about the only way I'm able to find the deals I've purchased.

There are also options like RSI, PPR, NoteLinQ, etc.

 Chase: Would you please expand what RSI and PPR stand for? Itried to search RSI and only got a repetative strain injury. :!)

@Annie Bliss ,

Yea, RSI Asset Management is a company out of Florida. RSIAsset dot com

PPR can be found at PPRNoteCo dot com.

MYTH # 1. You can buy a note to get a property.

 Buying a note is NOT buying the property to move into it, rehab like you own it or sell it as if you own it! Yes, as Bob mentioned, get a deed in lieu of foreclosure, better know you can do that before you buy the note! Good luck :)

This post has been removed.

Did notelinq ever launch?

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