How to start note buying ?

12 Replies

Hi @Anthony Thomas  below are my recommendations for more resources for getting some basic info on note buying. These resources will provide you a good start to build your knowledge foundation for note investing. 

Recommended conferences: 

Papersource Symposium: https://papersourceseminars.com/

Note Expo: http://noteexpo.com/


Below is a link to  Josh Andrew's book which is an excellent starting resource about NPL investing.
https://www.amazon.com/Paper-Profits-Beginners-essentials-mortgage-ebook/dp/B06Y4C7X6Y/


Finally, check out NoteMogul which has a very reasonably priced intro course to note investing They have a great self-paced starter course for under $500 that I think provides the basic info which let's you learn what you don't know to further your education.   

Happy Hunting!

Bob Malecki

I posted this in another thread, but going to the FCI site and running due diligence on some notes.  It won't cost you a penny and you can get some exposure to note investing.  Best of luck to you!

@Anthony Thomas Do you want to be an active investor, finding and working out deals or a passive investor, having others use your money to acquire and work and the deals? Ar you looking for firsts or seconds? Performing or nonperforming? If you want to be passive, there are many you can work with, including myself. Whether active or passive, Scott Carson is a wealth of information that will help you. I deal in nonperforming firsts, actively in my business, passively in my IRA.

I am going to look at that class.

First I have been looking into housing debt. However dew to debt being expensive right now I am looking into car loans first then breaking into housing loans.  Thoughts on that?

My reasoning is I want to be 1st position, and probably performing at this point. Get a few loans feel comfortable, then start looking into nonpreforming notes.

Originally posted by @John Peine :

I am going to look at that class.

First I have been looking into housing debt. However dew to debt being expensive right now I am looking into car loans first then breaking into housing loans.  Thoughts on that?

My reasoning is I want to be 1st position, and probably performing at this point. Get a few loans feel comfortable, then start looking into nonpreforming notes.

I have an old client of mine who does the car loan stuff for local used car dealers he gets the tiltles in his name.  so in essence a flooring line then when they are sold he signs them over in exchange for his principal and his return.. usually 15 to 18% interest on those.. 

got to choose the used car dealer wisely of course.. they have been known to fudge titles and your collateral has driven off without you getting paid.

I also have a client.. they happen to own a few Toyota stores in Oregon but one of their business and I think it could be one of the largest on the west coast is they buy sub prime auto debt... you know the kind were they put the chip in the car and also a little do hicky that flash's when the payment is due  and then when they are 15 days late or some amount of time the car is disabled.. so they can use the chip to find it and its disabled and they can just go and repo it.

when I was in Jackson MS I asked a used car dealer there that I met at my watering hole.. how the heck do you sell cars for a 100 down 100 a month .. he said  SON  my clients are born live and die all within in about a 10 mile square area here and the key is getting their mom's name and number.. we just drive around till we find it or call mom and get the whereabouts.. I thought that was novel..

Originally posted by @Jay Hinrichs :
Originally posted by @John Peine:

I am going to look at that class.

First I have been looking into housing debt. However dew to debt being expensive right now I am looking into car loans first then breaking into housing loans.  Thoughts on that?

My reasoning is I want to be 1st position, and probably performing at this point. Get a few loans feel comfortable, then start looking into nonpreforming notes.

I have an old client of mine who does the car loan stuff for local used car dealers he gets the tiltles in his name.  so in essence a flooring line then when they are sold he signs them over in exchange for his principal and his return.. usually 15 to 18% interest on those.. 

got to choose the used car dealer wisely of course.. they have been known to fudge titles and your collateral has driven off without you getting paid.

I also have a client.. they happen to own a few Toyota stores in Oregon but one of their business and I think it could be one of the largest on the west coast is they buy sub prime auto debt... you know the kind were they put the chip in the car and also a little do hicky that flash's when the payment is due  and then when they are 15 days late or some amount of time the car is disabled.. so they can use the chip to find it and its disabled and they can just go and repo it.

when I was in Jackson MS I asked a used car dealer there that I met at my watering hole.. how the heck do you sell cars for a 100 down 100 a month .. he said  SON  my clients are born live and die all within in about a 10 mile square area here and the key is getting their mom's name and number.. we just drive around till we find it or call mom and get the whereabouts.. I thought that was novel..

Yeah, looking into car notes I am only interested in long performing.  The reason I like car notes is they have way less up front capitol needed.  I wasn't planning on taking the world by storm with them. It would just give me practice buying notes. 

Foreclosing on cars seems problematic, but the threat that it could happen is better than a 3rd position loan on a house. Or, at least that is how I feel. 

After I get 30-40k saved up then start looking into housing notes or buying my next rental.

I am currently at my first house hack. I am cash flow positive but only by a little. About 3 to 4 hundred a month.  So I am a few years away from being able to do something like buy a new house.

This seems sound, at least I think. Throughts?

Originally posted by @John Peine :
Originally posted by @Jay Hinrichs:
Originally posted by @John Peine:

I am going to look at that class.

First I have been looking into housing debt. However dew to debt being expensive right now I am looking into car loans first then breaking into housing loans.  Thoughts on that?

My reasoning is I want to be 1st position, and probably performing at this point. Get a few loans feel comfortable, then start looking into nonpreforming notes.

I have an old client of mine who does the car loan stuff for local used car dealers he gets the tiltles in his name.  so in essence a flooring line then when they are sold he signs them over in exchange for his principal and his return.. usually 15 to 18% interest on those.. 

got to choose the used car dealer wisely of course.. they have been known to fudge titles and your collateral has driven off without you getting paid.

I also have a client.. they happen to own a few Toyota stores in Oregon but one of their business and I think it could be one of the largest on the west coast is they buy sub prime auto debt... you know the kind were they put the chip in the car and also a little do hicky that flash's when the payment is due  and then when they are 15 days late or some amount of time the car is disabled.. so they can use the chip to find it and its disabled and they can just go and repo it.

when I was in Jackson MS I asked a used car dealer there that I met at my watering hole.. how the heck do you sell cars for a 100 down 100 a month .. he said  SON  my clients are born live and die all within in about a 10 mile square area here and the key is getting their mom's name and number.. we just drive around till we find it or call mom and get the whereabouts.. I thought that was novel..

Yeah, looking into car notes I am only interested in long performing.  The reason I like car notes is they have way less up front capitol needed.  I wasn't planning on taking the world by storm with them. It would just give me practice buying notes. 

Foreclosing on cars seems problematic, but the threat that it could happen is better than a 3rd position loan on a house. Or, at least that is how I feel. 

After I get 30-40k saved up then start looking into housing notes or buying my next rental.

I am currently at my first house hack. I am cash flow positive but only by a little. About 3 to 4 hundred a month.  So I am a few years away from being able to do something like buy a new house.

This seems sound, at least I think. Throughts?

 I suspect your way undercapitalized to be buying car debt or any debt for that matter..  I LOVE the house hack though 

Originally posted by @Jay Hinrichs :
Originally posted by @John Peine:
Originally posted by @Jay Hinrichs:
Originally posted by @John Peine:

I am going to look at that class.

First I have been looking into housing debt. However dew to debt being expensive right now I am looking into car loans first then breaking into housing loans.  Thoughts on that?

My reasoning is I want to be 1st position, and probably performing at this point. Get a few loans feel comfortable, then start looking into nonpreforming notes.

I have an old client of mine who does the car loan stuff for local used car dealers he gets the tiltles in his name.  so in essence a flooring line then when they are sold he signs them over in exchange for his principal and his return.. usually 15 to 18% interest on those.. 

got to choose the used car dealer wisely of course.. they have been known to fudge titles and your collateral has driven off without you getting paid.

I also have a client.. they happen to own a few Toyota stores in Oregon but one of their business and I think it could be one of the largest on the west coast is they buy sub prime auto debt... you know the kind were they put the chip in the car and also a little do hicky that flash's when the payment is due  and then when they are 15 days late or some amount of time the car is disabled.. so they can use the chip to find it and its disabled and they can just go and repo it.

when I was in Jackson MS I asked a used car dealer there that I met at my watering hole.. how the heck do you sell cars for a 100 down 100 a month .. he said  SON  my clients are born live and die all within in about a 10 mile square area here and the key is getting their mom's name and number.. we just drive around till we find it or call mom and get the whereabouts.. I thought that was novel..

Yeah, looking into car notes I am only interested in long performing.  The reason I like car notes is they have way less up front capitol needed.  I wasn't planning on taking the world by storm with them. It would just give me practice buying notes. 

Foreclosing on cars seems problematic, but the threat that it could happen is better than a 3rd position loan on a house. Or, at least that is how I feel. 

After I get 30-40k saved up then start looking into housing notes or buying my next rental.

I am currently at my first house hack. I am cash flow positive but only by a little. About 3 to 4 hundred a month.  So I am a few years away from being able to do something like buy a new house.

This seems sound, at least I think. Throughts?

 I suspect your way undercapitalized to be buying car debt or any debt for that matter..  I LOVE the house hack though 

My job pays little north of $12 an hour full time. Used my 401k for closing costs on an FHA for $94k. So near 100% leveraged with that asset. Have some stuff I need to liquidate, but have about 10k for "if 'X' breaks". However I feel like I have no velocity if I am waiting to get green lit for a traditional mortgage company. (They want closing costs, and a year of payments saved. Doing the math minimal $50k, that is almost two years gross salary.)

My thinking is just finding note for 5 to 6k. Wouldn't touch my rainy day fund, and it would teach me more about notes than the three or four books I have already read. If invested right it would also provide me with a little extra cash to roll into something new.