All Forum Posts by: Mike Wood

Originally posted by Robert Littke:

Here's a question, how long can you draw out an option to purchase? Years? can you put annual options in? With more earnest monies along the way?

The option can be put out several years. I would suggest doing it 1-2 years at a time generally and have them renew at the end of each period if they choose not to exercise their option. of course one important part here no matter what approach you take is for the poor credit buyer to work hard on improving their credit. Improved credit worthiness will improve the whole deal and offer greater options.
Jon gave some pretty good details. thanks for taking the time on that Jon.

Originally posted by Robert Littke:

...
The other owner does own free and clear but I think she is about 85 and doesn't want a mortgage (which I can totally understand)

If you can get the buyer to pay a down payment and or have them make payments for a 6 month to year period then you can sell the note and she can get her cash. You might even find a note investor who is willing to work with her from the start. Try looking up Eddie Speed.

Eric makes a good point. It is very crucial especially in the world today to know what you are doing when investing with other people's money. There is far too much fraud going on out there still and it is a very dangerous place to get involved if you don't know what you are doing.
I have done a lot of private investing in the past and got taken on a lot of money with the fraud that happened in 2007 and I knew what I was doing. Unfortunately I also knew better and made stupid mistakes.
One of the most important things I think you need to be willing to do is consult an attorney and setup your business correctly. If you don't have the funds to work with a good attorney then you should not attempt such investing. Do it right or don't do it at all and don't do it if you feel that maybe you should not.

Ultimately the best option for the note business is to be involved with the creation of the note and therefore the sale of the property. If you can get in right at the beginning you can negotiate to have first dibs on the note when ready to sell.

If you opt to look for the leads in public record you need to find out if you are in a mortgage state or a trust deed state. Most of the US is trust deed. When looking for the notes in public record you will look for the deed of trust or trust deed document. Once you find that type of document you will need to look for a private party name on both sides of the deal. Then you know you have a private note that you can work with.
Most states have this data available online but there are still many counties that do not and you would have to go directly to the county courthouse to find that data. It is a lot of work but that is what running your own business is all about. Those who are willing to put more into it will get the greater results.
I hope this have been helpful

Hi guys, I am the owner of NoteDocs.com and I want you to know that not only will we provide with exactly what we say we will but we will provide it within 48 hours or less. (business days). If you are not 100% happy with it we will refund you.
The important thing to remember is your expectations. The only thing we can do as lead companies is provide the data that is recorded in public record. We don't control the data but just provide it as you desire. If you ever have a question my number is on the site. I hope you will always be comfortable calling. I have worked the note business and invested in RE so I understand the industry very well.

sounds like we are getting some clarity here on a few points. Nice to see you again Josh. I'll try to contribute a bit more nowadays.
I think poser is a good title for the Ninjas in RE
Gurus are not self proclaimed.
Experts are recognized by their actions.
Infomercials are well.... do I have to explain that one?
And what's with Twitter anyway?

Noteworthyusa.com is the site and Marc is absolutely right. They have some of best information and are linked with the top individuals in the industry. There is no better place to learn about the note business and make contacts with those who will really help you make it work.

I have a subordinate note on a condo in Glendale that has gone bad. Does anyone have some insight on the market there for rents? I am thinking if I can procure it I can perhaps rent it or lease option it till the market picks up. Doesn't look like values are high enough for me to get what I need.

Thanks for the push Josh. Mostly here to sell something but I don't mind helping out. ;)
Finding notes is not a terribly difficult task. There are many options to find them but it all comes under two main categories I would say.
Direct marketing techniques and
Indirect marketing techniques.
Direct involves going to the note holders themselves and making contact. This could be done through phone or mail and requires a lot of work. You can get a lead list and start marketing them but it will have a bit of a cost to it to do things that way. Lead list sources include:
www.totalnotesolutions.com
www.dataquick.com
www.noteleads.net
and many others. If you are going to take that approach you should plan on starting with a list of at least 5000 note holders because anything less and you are not being serious about the business. Then you will need to buy a new list when those run out. Many people to learn about the business opt for this approach in the beginning because it is so "invisible" but it is not the best way to go about it.
The best approach to finding notes is to build a local network. It takes a bit more time perhaps than just sending out post cards but it costs much less. You can talk to 20 professionals locally per week in less than 5 hours and statistically 1 out of 20 will likely turn into a good referral source for you continually. If you keep in touch with them then this approach alone will generate more notes than you can handle within just a year or so. The down side is you have to put forth the effort and take it serious. You will generaly not see results coming quickly. I have some details information about marketing this business if anyone wants to check it out. The site is not pretty but it is full of meat and detail and it is free. Oh, and there is nothing to sell at this site either. :)
www.bestnetcoach.com That is the domain name but it forwards to a geocities site. I have not paid for hosting because well let's face it, that costs money and if the info on the site is free then it is just an expence. I hope this info is found to be helpful.

-Mike

Eddie Speed is the biggest buyer of notes in the country. His company is colonial funding group.