notes, NPN, Preforming notes
Hi BP community,
I'm ready to get into note investing. Now that I have a plan, I would like to share it with everyone. I've been a residential General Contractor for 30+ yrs and now that my body is broken, it makes sense for me to invest in NPN or non-performing notes.
My strategy is to buy vacant NPN and rehab to rent or resell. So I did a test for my due diligence.
1. I picked a random NPN in a non judicial state that selling for 20K the home is valued at 60K but the borrower hasn't made a payment since 2008. FYI property is occupied.
2. I went to look up the property on Trulia and other sites and it does confirm the value of the property is close.
3. I wanted to see if I could find out who lives there and contact them. via PH,Cell,email...ect. PS. I was unsuccessful, all these sites I used wanted too much $ for the search or just outdated info as well as very bad reviews.
4. After that I went to that counties website through Netronline.com and try to pull up some records from that property and even call them to confirm info.
5. If I work in all the numbers that I would need to repay at closing?...back taxes, foreclosure costs, etc. how does that work as far as making an offer after being comfortable with the purchase.
6. Is there more DD needed and if so what are the snap shot basics to analyzing a deal? ex. Do this, this, and this to see if it’s a good fit to move forward or throw it out?
hope this all makes sense to someone in the note business
What do YOU think?