What is the best way to learn about buying/selling notes?

[Account Closed]

Any books or online resources?

[Bill Gulley]

Joe, there were some good overviews about the note business, but you better drill down deeper before you leap. Saying that if you get the property back and sell it with seller financing you may avoid the tax issues of the gain, but that is to your discount and there are no deficiency judgments with equity based loans as they are viewed as installment sales, not cash advances.....but since notes are usually purchased at a discount it's unlikely you'd have a deficiency, unless you had an uninsured loss.

I can see what Kevin was talking about as to large, small, etc, but really, you need to assess the value and risk of the note and adjust your discount accordingly as well as to your required yield.

The "loan package" issues will slowly fade away over time as the note will create a credit record and payment history.

I didn't go to all the articles Josh provided, but we have varied issues now with the SAFE Act pertaining to seller financed notes. These issues will have an impact on what note buyers will buy in the future as with any contract or agreement, if it was created illegally, it won't hold water, that is a real risk to a note holder who buys a note that was made out of compliance or illegally.

I keep threatening to write a book or a series on the "paper game", I shyed away as it would be alot of work and I refuse to be seen as some guru. I doubt there are any current books or much info on the topic that includes the new regulatory concerns.....but maybe there is...

IMO, the best way to learn might be to go to work or assist a note broker as well as study. Financing RE or buying mortgages requires an understanding of most all the issues of real estate, depending on how wide you cast that financing net. Good luck...