How many of you have bought a note this year ?

Tax Liens & Mortgage Notes
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How many of you have bought a note this year ?

Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

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?

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Bob Malecki
Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
7y

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!

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  • Bob Malecki
    Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes
    7y

    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!

    7Reply
  • Jordan Blackwell
    Philadelphia, PA · Member since 2017 · 13 posts · 21 votes
    7y

    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)!

    3Reply
  • Liza B.
    Specialist · McAllen, TX · Member since 2016 · 21 posts · 23 votes
    7y

    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. 

    3Reply
  • David Wandel
    Real estate investor · Pasadena, MD · Member since 2016 · 165 posts · 258 votes
    7y

    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.

    6Reply
  • Logan Hassinger
    Specialist · Fort Worth, TX · Member since 2014 · 528 posts · 226 votes
    7y

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

    5Reply
  • Jabari Long
    Real Estate Broker · Detroit, MI · Member since 2014 · 384 posts · 149 votes
    7y

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

    2Reply
  • Bill McCafferty
    Real Estate Investor · Coatesville, PA 19320 · Member since 2011 · 108 posts · 178 votes
    7y

    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.

    2Reply
  • Ken Hobbick
    Investor · Parker, CO · Member since 2014 · 42 posts · 44 votes
    7y

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

    0Reply
  • Dan DeppenBusiness Member
    Erie, CO · Member since 2017 · 274 posts · 267 votes
    7y

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

    3Reply
  • Frank Geiger
    Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
    7y

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

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    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.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    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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  • Logan Hassinger
    Specialist · Fort Worth, TX · Member since 2014 · 528 posts · 226 votes
    7y

    @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. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    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.  

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  • Logan Hassinger
    Specialist · Fort Worth, TX · Member since 2014 · 528 posts · 226 votes
    7y

    @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. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    OP
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @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.

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  • Logan Hassinger
    Specialist · Fort Worth, TX · Member since 2014 · 528 posts · 226 votes
    7y

    @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.  

    1Reply
  • Roman S.
    Real Estate Investor · South San Francisco, CA · Member since 2016 · 51 posts · 29 votes
    7y

    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? 

    6Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    7y

    @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.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    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.

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  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    7y

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

    3Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    7y

    I create 2nd position performing notes on my own rental properties in Arizona. So far this year we have sold 3 and plan to sell 2 more today. These aren’t really your regular notes those. They are more Just mailbox money notes.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Logan Hassinger:

    @Jason Hirko

    We are looking for nonperforming 1st’s on residential property. 

     Logan, question?  what rates of returns are you looking for on non performing firsts ??  and or are you like me.. my only purpose to buy a non performing note is to end up owning the asset ??

    And since its a lot of work to find these and flush them out.. would it not make sense in your state where you need no license to just create your own firsts were you can make 10 to 15% apr no problem and not have to deal with all that goes into non performers ?

    Or do you set the bar at say 25 to 35% APR.. before you pull the trigger. ??

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  • Liza B.
    Specialist · McAllen, TX · Member since 2016 · 21 posts · 23 votes
    7y

    @Roman S. If you are looking for training in note buying, I also recommend @ScottCarson. He has a lot of videos that will give you a good overview of the note business and also some executable things you can do. There are also lots of training available if you choose to follow him. 

    1Reply
  • Joe Ort
    Jacksonville, FL · Member since 2018 · 38 posts · 20 votes
    7y

    @Shiloh Lundahl - as someone getting into notes and having a few rentals, would love to hear more about what you're doing.

    0Reply
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