First Note Purchase

[Laura McPhail]

I recently started researching buying notes, and I’m totally hooked! What is your advice on the best site to purchase them? Can anyone recommend a note servicer? I’d ultimately like to start with a note in TX or AZ (if possible). First lien, performing preferred!

[Chris Seveney]

Laura McPhail
For servicing I use Madison management out of New Jersey

For Performing I would look to other note investors in this space. They typically get loans Reperforming for a year and resell. These also will be what you find on exchange sites. While these carry a higher risk you also get higher returns. You will not find institutional paper that is performing and get those types of returns.

Another option is owner financed notes which the lender may have originated. One word of caution - highly recommend checking out who is servicing the note currently - if it is owner servicing it the note is typically not as valuable.

Some sites that do sell are fciexchange, paperstac, madison management, watermark exchange, loanmls to name a few of you looked at online portals