New to Notes.... off to the races!

[Zachary Taylor]

Hello Fellow Notes Folks!

New here and thought I would introduce myself. I am 33, worked in finance for past 10+ years in various roles including private equity, LBOs, M&A, credit, etc. However, I have not had professional experience originating, buying and managing my own notes, which is why I am here.

I'll get right to it. I want to get started by buying one institutional NPN. Looking to spend less than $45k for my first go at this. Open to ideas here!

Buying the note: I have signed up for Loan MLS, PPR and FCI. Are there other online resources to find notes you all can recommend? How does the borrower know to pay you now? or is that handled automatically?

Due Diligence: I have done a lot of it in my day. What are key numbers based factors you all look for on NPNs? Number of recent payments? % of UPB? Do any of you use third-parties to help with diligence and reviewing collateral files? If so, which providers?

Service Providers: What services do you all use to manage a note after the purchase? Lawyers, services, appraisal companies, agents, etc? Who do I need to line up prior to a note purchase?

Loan Mod: I hear a lot of talk about Loan Modifications to get the loan performing again which is my goal. I hope to never have to foreclose. How does the loan modification process work? Is it me who is calling the borrower to work something out? I'm fine with that just trying to mentally prepare for everything. I assume a lawyer drafts the loan mod and gets everything documented?

General Questions:

Range of legal fees, service fees, due diligence fees, etc? How much is third party service fees does one NPN go through? What is the cost to foreclose (ballpark / high level numbers are great)?

Typical time from purchase to loan mod and getting it back on track?

Historical loss rates on NPN's? Any data out there?

Education: Are there any case studies out there I can read? Generally I'm looking for educational info on how people find NPNs (I know I know, networking blah blah. But I just want to do one to start), what diligence they do prior to buying, how they are managed and process for how they are modified and sold. Anything you all you think would help me get up the curve would be AWESOME!

Please PM me any time.

That is all!

Zack

[Jay Hinrichs]

wow I got tired reading all that has to happen to buy one 45k note.. seems like there has to be a better way.. :) good luck on it.. there are plenty of NPN guys on this site.. who have little funds and some that have larger funds.. I am sure they will chime in