All Forum Posts by: Scott Carson

Yes sir @Bryan O. !  Anytime!

Most performing notes are being sold at a 12-15% yield...

Sorry @Bob Malecki I've never had a problem with any SD IRA company deploying funds in a timely fashion besides Equity Trust. Quest IRA, Camaplan, Entrust and most of the others are all able to get things done in a timely fashion with the thousands of notes that we've closed with SD IRA Funds.

Yes, checkbook access is nice to have, but having the proverbial "lid off of the cookie jar" is often too big a risk for new investors to have the temptation to use their checkbook access for things that they shouldn't be doing or using it for. I've seen investors dip into their IRA funds for things that they shouldn't be doing.

I could save money each month by managing my own accounting and books in the office, but I'd rather pay for Quickbooks and have my bookkeeper come in and charge me a fee to make sure things are documented properly.

Does Quest and others charge annual fees? Yep, they sure do. But I'd gladly pay the small fees to Quest to help keep my IRA investments and accounts separate from my other dealing to ensure that I don't end up self-dealing or doing something to risk my entire IRA in a prohibited transaction. Quest has gotta pay for all of those educational and networking events that you like to attend (with the open bar) to raise capital at for your fund that they don't charge you for.

:) 

Note payments have paid a ton of my debt off!  LOL!

If you have a fast SD IRA company, like Quest IRA, you don't need checkbook access! LOL!

Quest IRA all day!!!!! Best customer care and education in the industry!

What you have to realize is that when you buy a note, you are buying the mortgage that controls the asset or home.  Why I like buying notes is that I'm buying that debt at a fraction of what is owed, but the borrower still owes the full amount.  If I can't work to create a win-win with the borrower on a reinstatement, trial payment plan, or loan modification, then I have to look at deed in lieu of foreclosure or potentially end up foreclosing on the property.  If the borrower owes $200K on a $150K property, there is no equity and the borrower has less reason to fight me to stay.  I may pick that note up for 50-60% of value or at $75K, which gives me plenty of room to make a profit.  Now, if the property is worth $200K and they only owe $150K, the note seller is going to want to sell that note close to the full payoff.  If I have to foreclose and the asset gets bid up beyond what I am owed, that difference doesn't come to me, it goes to the borrower or any lien holders behind my first lien.  So let's say it goes for 80% of the value at the auction, which is $160K.  That's not a good use of my funds to only make $10K on a drawn out foreclosure where the borrower is fighting me to protect $50k in equity.  Now, if I could get the borrower to sign over the property via DIL or a cash for keys situation, great!  But often times, most sellers with equity are going to fight you for that.  

So in recap, I like buying notes where the UPB is more than the value as I get better pricing, along with being able to better control the exit strategies of the deal. I hope that helps. I know it's different if you are coming from a "traditional" real estate investment where investors look for equity, but it's a different game with notes.

Yeah, I don't like it when there is no info on who the individuals in the company are.  Plus the spreadsheet looks like a joker broker tape.   

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