Where is everyone finding their notes? And are you buying?

Question

Hello All - If people would be willing to share, where is everyone finding notes for sale?

Has anyone successfully accessed a small hedge funds assets? What about relationships with banks?

Also, it would seem that the deals would not be as favorable as a couple of years ago, any color on that would be awesome!

Thank you!

David

Andy Mirza · Answer

We get our NPN's from hedge funds and brokers. My partner spent years developing contacts with other traders and it seems that it's a pretty small world where everybody knows each other. Access is key to getting institutional NPNs at good pricing. You have to spend the time to develop relationships with the right people or, like me, find someone who's already done that,

Darren Eady · Answer

I lend my own money and create my own performing notes.  I'm not sure if this is a popular method but after 20 years of lending, I wouldn't buy anyone else's notes.  I'm only comfortable placing loans after I've run a borrower through my own due diligence and only when they have significant skin-in-the-game.  I'm seeing several lenders on BP offering 90-100% LTV and I think they are CRAZY!  I keep my LTV at 50-65% of the purchase price or BPO value, and even then I feel safe, but I also have several other safeguards in place, or I wouldn't lend my money.

Bob Malecki · Answer

Hi @David Sharp, similar to @Andreas Mirza, we attend conferences and get referrals to asset managers and credible note brokers. It takes time to develop those relationships. You can also find decent deals at FCI Exchange if you do your research.  As far as buying directly from banks, that is possible but you either need a large capital outlay to take down a large pool of NPLs or deal with local portfolio lenders who may have some assets which they need to unload.

Bob E. · Answer

We are buying property and then rehabbing and selling with owner financing so we create our own note, originated to our standards.

At some point we will need to sell all or part of the loans to refresh our capital but we have not reached that point yet.

Paul Birkett · Answer

We buy NPLs in bulk from the banks and servicers. Then take them through the workout process. We sell from time to time. Feel free to reach out if you're looking for inventory.

Where is everyone finding their notes? And are you buying?

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