Performing notes - where do you buy them?

Question

Hello Friends,

My question is to those who deal in notes and have first-hand real life experience: what do you think is the best way to source performing notes? I'm not looking for NPN/RePN at this time.

Thanks in advance!Alex

Patrick Desjardins · Answer

It depends if you're searching for performing seller financed notes vs performing bank originated notes.

I'm not very familiar with seller financed notes but it seems like buyers mostly do direct marketing to people holding the notes.

As for bank originated notes Bob gave good sources. Hop on LinkedIn and join the note related groups / connect with note buyers and sellers. You can also go to conferences and you'll feel like a rock star. Everyone's looking for buyers.

Bob Malecki · Answer

Hi Alex,

There are online resources for those looking to buy performing notes like FCI Exchange and Loan MLS. Also you may find some sellers on Linkedin. PPR also sells reperforming junior liens. Many note funds will liquidate their reperfroming notes to recapitalize their fund to buy more NPLs.

Bob

Bob M. · Answer

I've bought some on fci but you have to be careful. It's just an exchange so it's a free for all. I do like being able to see an objective payment history on the ones they currently service though. Many times I got the due diligence paperwork after winning an initial bid only to find out it was a CFD or actually re performing instead of performing. Kind of a time waster and many less than straight forward sellers. I would recommend trying out the bawld guy note fund. I have yet to purchase one but their warranty and upfront due diligence seem attractive. There are also many hard money lenders around on BP as secure private funding that do straight up shorter term interest only loans and kick them out to investors.   I have had good experience with them so far.

Ken Martinez · Answer

You can go to either of the two big Note conferences in Las Vegas, Noteworthy and Paper Source and both will have Vendors with product to buy in addition to plenty of investors to buy from.  I have been to both and I would say they are well worth your time.

Bob E. · Answer

@Alex Stepanov Be careful buying on FYI.  If yo know what you are looking for you might do OK but I have had people they to sell me bad notes through FCI more then once.

Brooks J. · Answer

This is an old thread but I thought I'd add my $0.02 since I have first hand experience with Bawld Guy fund.

BawldGuy fund is, as you guessed, a PPR note.  However, unlike the rest of PPR which deals primarily in 2nds, the Notes in the fund are 1sts.  The problem with answering your questions about LTV or geo concentration is that the fund has offered very few Notes since the time I've been in, approximately 14 months.  It's been a problem there, since obtaining Notes is what you need to get the yield up to par.

Alex Stepanov · Answer

Thank you gentlemen! I have looked at FCI and had mixed feeling about the quality/quantity of the performing notes they offer, that's why I'm posting here. Wonder if you would mind spamming me with a few fund names? I'd be more excited about bank issued notes but not to sure how to get in...

CheersAlex

Rob Cee · Answer

@Bob M. the bawld guy note fund is just a PPR note fund right?  What kind of notes are in that fund 1sts or 2nds?  Average LTV of notes in the fund?  Areas of the U.S. concentrated in the fund?  I'm guessing the fund is composed of re-performing 2nds likely at higher LTV's in lower priced areas of U.S.?

Performing notes - where do you buy them?

Most Popular Reply