Where to find Notes that are not from a passed around list

Question

Hello, Where can I find Notes that are not from a passed around list that everyone has seen already. I am looking for notes that are from Banks and not from the notes selling companies that are out there. thanks

Dion DePaoli · Answer

A note for sale, is a note for sale. For the average investor you will like not get a list of bank assets, too much liability. As Joe alludes, you will need to prove you are a capable and competent counter-party more often than not to gain any access bank non-accrual lists.

A local bank would be the lowest barrier of entry but they tend to not want to sell to many of their loans on the residential side. The larger regional and national banks will not give you access due to counter-party risk. They will sell to a fund and the fund will perform 'down stream' trades to lower level capital investors.

It's not clear when you mention "Note Selling Companies" if you mean a broker or an investment firm which has notes for sale. An investment firm with loans to sell is a Seller of notes. It sort of sounds like you are lost in broker circles.

This is a question often asked by a person looking for a pool of loans to broker, hoping they find something 'off market' to show to a potential buyer.

Marty Happle · Answer

It is very possible to get "untouched" notes from investors or hedge funds who buy direct from banks and are not just brokers.  I've bought in a  few situations where you can either JV with a bigger buyer who has access already and then making their purchase a larger one.  You get your chunk of the notes upon delivery.  Then there are investors that will "broker" with your money, so in essence you get notes direct from the bank with their markup on it.  They are buying a big pool that they flip a bunch of it themselves to put their money back at work and then keep a portion of it for themselves.  They then get to do it with OPM (ours).

Having said that ...

1. You always need to know the seller as best as possible.

2. Because someone has worked a note, does not mean that it isn't good.  I could be that when you get the note, that is the moment when things change in the borrower's situation.

3.  Stick to warranties with the types of notes you want and getting collateral in a reasonable amount of time.

Account Closed · Answer

Take your bank statement that shows you have at least $5 million in cash you might get in the door after the bank does their due diligence on you.

Joe Gore

Mary B. · Answer

Where: directly from the banks

Kudos,

Mary

Where to find Notes that are not from a passed around list

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