Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
I have noticed lately there are lots of views related to posts regarding notes secured by real property. I also noticed the bulk trading forums had a bit of negativity to them. So I decided to open a group which deals specifically with whole loan trading in bulk and in single. The group is open to the public and I hope some of the experienced folks on BP can join us to help make the group a value add to BP.
Additionally, I hope to see some of the lesser experienced folks join us for solid discussions around various details related to the industry. The previous groups and forums seem to be have lost their integrity which we hope to bring back to this space. There is a legitimate business around the buying and selling of whole loan mortgages in bulk and one off basis and I hope with the help of a couple others here to bring that to light for members as a viable option to their business practices.
Navigate to the Group portion of BP and search for Whole Loan Mortgage Trading. Feel free to say hello once your in the group.
I still think of Institutional Pools and (Institutional) Individual Notes as unicorns...I've heard of them, but never myself have I ever seen one (or bought) one.
Dion: I've bought several non performing notes that were successes in that I was able to do what I needed to do with them in order to profit. I would love to learn more and like brainstorming. But I am thinking maybe your introduction post isn't lay person enough. I don't even know what "whole loan mortgage" and "one off basis" mean.
K. Marie Poe, thanks for that input. I would love to have you join the group!
A whole loan is the whole loan in the form of a note secured by real property as it was originated with all rights included. The loan has not been securitized or fractionalized. In the institutional secondary market this term is used more often than "Notes" as a Note does not just mean a note secured by real property.
So in layman's terms folks, Whole Loans are Notes and include Performing, Sub Performing, Re Performing and Non Performing loans secured by mortgages or deeds of trusts.
Sorry, "one off basis" would refer to purchasing one asset at a time as opposed to a pool of assets. A pool and bulk also mean the same thing. A pool of assets can mean two more.
My experience now is that I've bought over 40 notes, with most of them being secured by SFRs or MHs. I've also bought a few notes secured by land, as well as 5 that were secured by business.
I have purchase three (3) separate pools of notes, all from private investors. I also have 2 note sellers that I have bought multiple notes from on separate occasions.
Loc R., awesome Loc, glad to have you. I am sure you will bring some great insight.
I did send a message to Josh from BP to inquire about how to send out invites for group membership but have not heard back. There are a couple others I would love to see join the group but don't want to call them out in a public forum in case they don't want to join.
And the next question will be about fractionalized, breaking down several notes to a yield to maturity, matching yields and risks and other aspects to a WAM and distribution......ooops, sorry WAM is weighted average maturity.
But this all comes about in portfolio transactions and management, Dion, there probably aren't three people here on BP that are pricipals in bulk sales, been a long time since I did. What you'll start here is a daisy chain talking about bulk sales. It takes alot of horsepower to buy 20, 50 or 100 mortgages.....
Maybe you can get some excitement about one offs, but there are brokers here and lots of birddogs, good luck with your group, I'll drop by.
... There are a couple others I would love to see join the group but don't want to call them out in a public forum in case they don't want to join.
That is what the PM (Private Message) system is for.
You use the "Connect" link next to the user's post, and once you become colleagues you can send the PM. If you are a PRO member, you don't even need to become colleagues first I believe.
Bill Gulley, would love to have you. I am aware of the broker issues that tends to accompany this topic. That said not all brokers are bad and certainly some experienced folks are who they can learn from.
Come on in and bark at anything you see fit. I hope to bring some intelligent conversation to all facets of the business and know many topics will benefit from your presence. Thanks.
Will Barnard glad to have you in the group! Look forward to contributions from your background and experience in real estate and investing. I believe you have even originated some loans as a owner during your career, all good stuff.
K. Marie Poe, Loc R., Bill Gulley, Will Barnard perhaps I should amend the name to "Whole Loan Mortgage Trading, Investing & Ownership (Institutional & Private)" to encompass more broad but specific topics revolving around trading, owning and investing in this asset class.
I still think of Institutional Pools and (Institutional) Individual Notes as unicorns...I've heard of them, but never myself have I ever seen one (or bought) one.
Dion, I have learned that on BP, the title to your thread is important to garner attention, perhaps a change to something more clear (exciting) would be beneficial.
I also agree with Loc's last comment, still waiting to hook that unicorn!
Dion, I have learned that on BP, the title to your thread is important to garner attention, perhaps a change to something more clear (exciting) would be beneficial.
I also agree with Loc's last comment, still waiting to hook that unicorn!
No, just a means to help keep you at 100 influence.
No wonder the site is slower these days, your 150+ posts each week are slowing down the servers Bill!
Thanks for starting this group Dion. I look forward to the conversations here. I have been involved in trading a lot of pools of loans secured by manufactured homes and several pools secured by commercial and residential properties. I trade single notes secured by residential and commercial notes on a regular basis. We only work with performing notes. There are a lot of jokers trying to get into the bulk market spaces and, I always run for the hills when I start hearing all the jargon-like NCND, LOI, POF, Mandate, Compiler, etc.... We have had good luck over the years creating competition around private and small lenders loan portfolios sales. I find that the key is to get the seller(s) under contract up front, so that you have some control over the deal. When you have the seller wrapped up under the right contract, there is no need to put you potential buyers through a bunch of mumbo jumbo. The buyers make the rules and, the real ones are not about to put up with a bunch of running around....