How many of you have bought a note this year ?

87 Replies

As we are now 8 weeks into the year, have you bought a note (or CFD)? If not what is holding you back.

Have you found a mentor to work with to assist you on what is holding you back?

Personally I've purchased 10 notes so far this year in various joint ventures and in our private equity fund we just acquired 66 second position notes. So far so good!

Closed on my 5th a few weeks ago! Your Good Deeds Note Investing podcast was a huge help in the process. Thanks, Chris (and Gail)!

Since I started January of this year, I have bought 2 notes, sent out a bid for 6 more assets last week and waiting for another tape this week to review. 

Congrats to you guys. I much prefer creating notes. 2 so far this year and working on 2 more. Although I am intrigued by the note business I don't think I could handle the due diligence part. After being in the office for 2 hours I have to find a house or a roof to go look at.

We have closed on 2 so far and waiting for bid acceptance/counters on another 39. 

I haven't bought any but interested in 1st & 2nd's in non-judicial foreclosure states.

I've bought 6 Notes in 2019. My Goal is 18 for 2019.

5 Re-Performing 2nds. In CO. FL. IL, NC & VA.

1 Non-Performing 2nd. In IN.

I have one purchased so far this year, but have plans in the works for more in the coming months 

I've closed 5 so far this year, and have bids out on another 25.

Super interested in note investing! Just haven't pulled the trigger yet

Originally posted by @Logan Hassinger :

We have closed on 2 so far and waiting for bid acceptance/counters on another 39. 

Helping investors achieve some passive cashflow. 

 when you say bids on 39.. does that mean if you win the bid you will nail all 39 or just some of them

and what are your ratios basically ?  bid on 39 expect to land 5  type of thing.. just curious and think it would be good info for the audience.

Originally posted by @Bob Malecki :

Personally I've purchased 10 notes so far this year in various joint ventures and in our private equity fund we just acquired 66 second position notes. So far so good!

wow 76 notes all NPN or are some performing.. if NPN that seems like lots of work ahead of you.. !!

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@Jay Hinrichs  

Great question Jay. I’m expecting to close on no more than 10. 

As for a closing ratio, we expect an average of 15-20% to close. 

Originally posted by @Logan Hassinger :

@Jay Hinrichs 

Great question Jay. I’m expecting to close on no more than 10. 

As for a closing ratio, we expect an average of 15-20% to close. 

thank you.. when I was looking at larger tapes in the Crash.. those that were 5 to 10million.. we had to take them all .. 

it was quite frustrating trying to figure out who was real.. we get frustrated with wholesalers in real estate.. daisy chain in notes was off the charts.. I suspect its not like that now.  

@Jay Hinrichs

I don’t know, Jay. It may be worse right now. I get the same tapes once a week that are from multiple senders. 

I focus on bank direct assets, targeting very specific markets. 

@Logan Hassinger

I see people posting a note for sale on Facebook and others copying the post and selling it as if it is their own

In regards to hit rate- if I bid on 15, I probably get 5 accepted and 5 legitimate counters. Of the 10 I end up closing on 60% due to issues with title etc.

one of the most frustrating things for me is the quality of the paper and sellers not disclosing this so you order a title report and that money goes out the door. My hit rates have gone up over past year because I know what the sellers tendencies and bid on what I want and I know will fit their sales cost profile.

@Chris Seveney  

Our goal is 100 notes this year so I would expect our hit rate to climb as I begin to work with the same sellers and we get more familiar with each other.  

Hi note gurus, other than reading Dave Van Horn's book (which I just bought) on note investing, are there any other good resources to learn more about how to get started, evaluate and find notes for sale? 

Updated about 1 month ago

And do notes count toward your limit of 10 financed properties?

@Chris Seveney

Purchased one note this year, $2.2 million principal balance paid $1.78 million. Note has 13 years left, annualized ROI 11.88%

Have a transaction set to close Feb 27. To avoid usury in new note we are doing sale/leaseback/repurchase. Essentially lending $2.5 million for 7 months and receiving back $2.985 million. 19.4% return, 33.5% return annualized.

We don’t compete in the residential note market, preferring to concentrate on commercial real estate notes.

Originally posted by @Chris Seveney :

@Logan Hassinger

I see people posting a note for sale on Facebook and others copying the post and selling it as if it is their own

In regards to hit rate- if I bid on 15, I probably get 5 accepted and 5 legitimate counters. Of the 10 I end up closing on 60% due to issues with title etc.

one of the most frustrating things for me is the quality of the paper and sellers not disclosing this so you order a title report and that money goes out the door. My hit rates have gone up over past year because I know what the sellers tendencies and bid on what I want and I know will fit their sales cost profile. 

for me I wont do any of these deals without fresh title insurance.. I get it though be expensive pulling title .. only to not buy the note.

sounds like daisy chains are still out there.. just the note version of  no money wholesalers that are rampant in the fixed asset space.

We've sold 43 performing notes so far this year. What are you guys looking for in the notes you buy?

Roman

For notes you do not get loans from banks - you are the bank therefore it’s apples and oranges when you are looking for funding to acquire a property. There are several podcast out there on note investing as well as books and training. I learned from @Scott Carson . He has multiple training programs if your interested in non performing notes 

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