Note Investing – Portfolio Management

21 Replies

Hello BP community, just checking in with the group for any tricks of the trade with portfolio management or accounting systems being used by note investors.  I use QB Desktop Pro for all my accounting and it seems to work well.  I switched over from Online QB which was very limited.

Hey Martin,

I too use QB Desktop Pro. The main advantage is that I can create multiple companies and the cost is the same. Then there is the fact that my CPA prefers QB.

For maintaining my notes, I use a CRM called Pipedrive. I've put out a few videos on YouTube on how I use the system to manage my notes. I've got a call with Salesforce today, so maybe I'll be switching to their new product. Or not.

I use DropBox for my file storage. I keep my QB files there, so I don't have to worry about losing my books if my computer tanks.

I use MailChimp for marketing, but there are other mail systems out there.

Foxit Phantom PDF for my PDF editing and signing.

For maintaining my mileage, I use TripLog. My preference for TripLog is because it is cloud based, not phone based, so if I lose my phone, I still have my miles recorded and can access them from anywhere online. The systems that only record the data on the phone can be great, but when the phone dies, so does your data.

In fact, everything I do is cloud based so that I can access anything from any computer. I actually use 3 computers for this work, but all of the computers are set up similarly and I can function on any them at any time, except maybe to let DropBox catch up on the latest files.

That's about it. 

@Martin Saenz In addition to QB accounting type software we are big fans of the TValue Amortization Software for note investing.  We also use InfusionSoft for CRM and email marketing.

Hello @Adam Adams , appreciate the insight.  My CPA prefers I set up borrowers as clients to record payments. I've heard other investors use the 'class' option for borrowers.  Are you using QB Desktop Pro on a cloud based system?  I know there is some level of difficultly doing that.  I use Dropbox.  For the CRM system, I have my own database that I had built however I've been turned onto Trello as of late.  Trello is cloud based and is very user friendly.  I don't do much marketing....what do you market?

Thanks again, Adam for your insight.

Thanks @Tracy Z. Do you use TValue to gather data for the Loan Account Statement when you pick up an NPN or for when you are creating a mod or a new loan?

@Martin Saenz

I do not receive payments from the borrowers. They all come from Madison Management. I do use the Class system, but that is mainly because I take on JV partners and it makes it possible to present books to a specific deal to my partners. If I didn't have partners, I may or may not be using the Class structure. I keep my QB files on DropBox. I have DropBox installed on my computer, so I'm actually looking at my hard drive for these files. DropBox keeps my hard drives synced. I have 2 computers that I have QB installed on. They both point to the same files. As long as I am not logging into both computers at the same time to use QB, there isn't an issue.

The reason I use Pipedrive is because of the email integration. I can tie an email to a deal/asset very easily. Then I just need to click on that deal/asset and all of the emails, notes, tasks, files are there for me. Being able to track a chain of communication per asset is very important to me. There are a lot of CRMs out there, but they all tend to fail on that email integration. SOHO, Insightly, Podio. I've tried them all, but I keep coming back to Pipedrive. They do have ways to tie the emails to deals, but they involve mail forwarding to assigned CC emails. It's too much work. I would say Trello is more of a project management, not so much a CRM.

I was skeptical about Pipedrive but after reading Adam's comments on it and some other people, I started using it a few months ago and it's excellent. It's not a stand alone tool you can use by itself, but it lets you track things and combined with other products it does a good job.

@Adam Adams Understood on servicing. I was referring to when you get the remittance reports and you update your QB's. Assume you have a bookkeeper in place. I use a VA from India who does a stellar job for me. I love DropBox on my computer as well. I used to use ADrive and made the switch to DropBox....great move:)

Understood on two computers for QB....assume both computers are on the same network.  If Online QB was as sophisticated as Desktop Pro, I would use that option for sure.  I'm going to check out Pipedrive for sure.  Thank you, sir.

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Originally posted by @Martin Saenz :

Thanks @Tracy Z. Do you use TValue to gather data for the Loan Account Statement when you pick up an NPN or for when you are creating a mod or a new loan?

Both! But since I mostly work with existing notes I use TValue (and the HP12C) to verify the terms of amortization on the note I'm looking to buy and then double check against the current balance to see if the payments are current or behind.  

Then we use it to run anticipated yield to structure offers to see the ROI based on the discounted pricing.

If it is a partial purchase I can print out amortization schedules to show the seller how the full and partial balance track and what would happen in the event of early payoff.

On the back end after purchase to verify a loan servicer's payoff statements and/or for a modification or restructure as you mentioned.

Awesome, Tracy. I have a similar process when picking up NPN's that were self-serviced by the note seller. However as of late, I'd had some complications with Land Home using prior servicer data that is incorrect. It's difficult having them adjust their numbers outside what was provided by the prior servicer.

Per Adams recommendation we started using pipedrive to track all of our loans and we have multiple pipelines setup -- one for performing notes one for loss mitigation and another one for our investor lead management. 

Since we are three Partners who work virtually we use Basecamp for project management and Google docs to store collateral and Company files. Basecamp allows us to add an individual to a specific discussion board / project such as are foreclosure attorney or third-party participant on a project. 

Outside of our company I also manage multiple joint ventures and use Basecamp, setting up an individual discussion board for each venture with my JV partner and and myself to dialogue during the progression of the note loss mitigation process. I store all of the collateral contractual and financial documents in segregated folders on Google Docs.

My company uses QuickBooks and assign separate classes for each asset that we manage so we can isolate them for profit and loss review. For my JV projects I just keep a simple spreadsheet of income and expenses to track profits and distributions to each partner in the venture.

FCI handles all of our Loan Servicing and collections so all we do is enter the income and expenses for each class in the QuickBooks file. 

Bob

Hey @Bob Malecki , so you use the Loss Mitigation program with FCI for all your notes?  When I started buying notes in 2013, I used the program but didn't find it extremely effective.

It's not really for portfolio management per say, but to quickly calculate values, IRR, payments, returns etc I use an app called Financial Calculators (then the TVM calculator). Nothing fancy but it's very quick, easy and don't need to carry your calculator with you. It's great when you want to input different values to see what the return would be at XYZ coupon payment, or to backtrack into a price based on a 12% return, etc.

@Adam Adams

Hello Adam.  I just started with Pipedrive and would love to see how you're using it.  Can you share the link to your video?  Thx.  Also, have you done any project management with trello or asana?

Cheers

Originally posted by @Martin Saenz :

Hey @Bob Malecki, so you use the Loss Mitigation program with FCI for all your notes?  When I started buying notes in 2013, I used the program but didn't find it extremely effective.

 Well we have them do collection calls but we also use 3rd party companies to perform more effective loss mit and one of my partners actually contacts the borrower after FC is filed to work with them for a loan mod. I agree that FCI is not very effective on loss mit, but having them make the weekly calls adds pressure to the borrower to respond 

Originally posted by @Richard Galdieri :

@Adam Adams

Hello Adam.  I just started with Pipedrive and would love to see how you're using it.  Can you share the link to your video?  Thx.  Also, have you done any project management with trello or asana?

Cheers

 FYI, I've tried Trello, Asana and most of the other apps and found Pipedrive to have the functions we need to manage a note thru the various phases from acquisition>loss mit>reperformance>or... FC> liquidation. 

@Bob Malecki Very nice.  I like the piggy backing approach myself.  I'm surprised FCI allows you to use a 3rd party when you are locked in on the loss mit program.  Good stuff.  Look forward to meeting you in January  

Originally posted by @Bob Malecki :
Originally posted by @Richard Galdieri:

@Adam Adams

 FYI, I've tried Trello, Asana and most of the other apps and found Pipedrive to have the functions we need to manage a note thru the various phases from acquisition>loss mit>reperformance>or... FC> liquidation. 

So are you not using Basecamp anymore?  You mentioned earlier that you use it for PM.

Yes, we are using Basecamp for project management and Pipedrive to track our loans thru various stages

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