Note Nightmare

[Josh Platko]

I need to hear some nightmare stories on subperforming notes.  Just recently began studying them, and not seeing the immediate risk.  Long foreclosure process?  State loan laws tough to understand? Loanee difficult to work with?  It seems that if you get the note at a discount (i.e., less than property value), worst case scenario you get the said property, and the equity (assuming there is some) in the property.  

[Jay Hinrichs]

@Josh Platko  I was just having a conversation with one of the more experienced investors in the space here on BP.

and we both came to the conclusion. you have absolute novices jumping into hands down the most complicated and risky transaction there is...

there is SO much that can go wrong... its a skill set that one should probably learn before jumping into as a newby..

I have 40 some years at this and for me its so complicated and my total desire not to deal with those with financial issues. has kept me out of the space...

There are just way to many good performing notes to ( at least for me) knowingly buy into a problem.

And many of these folks doing it when you talk with them.. they are totally in the honeymoon stages.. having an experience level of buy maybe 1 to 5 notes in last year or so..

Just one thing to remember there are law firms that specialize in keeping people in their homes.. for years on end without paying this is just one  item.

Drive around VEgas you will see the bill boards... big bad bank coming after you call me.. for 1k I can keep you in your home for up to a year