All Forum Posts by: Account Closed

Welcome Katrina,

I'm a bit west in central VA.

Which part of real estate investing are you attracted to? There are a lot of different business models.

What I'm saying: be cautious, be smart, take action, make money.

What he says: you don't know enough to do it, you will lose your shirt, don't take action.

You claim to know a lot about statistics and probabilities. So you understand the concept of expected value.

This guy is trying to convince you that you're going to lose all of your money, repeatedly, if you buy notes. Even if you did your due diligence. Even if they have equity.

You buy 1 note? You'll lose your money.

You buy 100 notes? You'll lose your money.

You buy 1,000 notes? You'll still lose your money.

I don't think you agree with his stance. Neither do I.

One of the biggest obstacle to successful investing is fear of the unknown. I have it, you have it, everyone does. The point I make with every post, and I will continue to make it despite his insults, is that at some point you just have to take a small calculated risk and improve upon it. Bradford, you said elsewhere if I remember correctly that you want to start investing in notes but you need more information.

I bought my first note for 16,000 with UPB 60k and 20k in arrears. A delinquent 2nd note in New York with 100k equity above my position. Remember expected value. Do you believe, like Bill, that the expected value is YOU'RE GOING TO LOSE YOUR SHIRT or do you believe the expected value is a good return? Think about that.

I'm kind of amused at all the assumptions from this so called expert, who doesn't have the slightest clue about me. No wonder this part of the forum isn't too active - no one wants to be smothered by this cesspool of negativity.

Bill arguement #1: YOU HAVE TO LEARN ALL THE LAWS IN ALL THE STATES OR YOU'LL GO TO JAIL - when everyone here is smart enough to hire an attorney in the state.

Bill arguement #2: BETTER HAVE THAT T CROSSED OR YOUR NOTE IS WORTHLESS YOU JUST LOST YOUR SHIRT - when everyone here is smart enough not to invest all their money in one note.

Bill argument #3: YOU GUYS ARE WAY TOO DUMB TO INVEST IN NOTES.. LEAVE IT TO EXPERTS LIKE ME WHO HAVE 72 YEARS OF EXPERIENCE... REMEMBER YOU'LL LOSE YOUR SHIRT - when no one here is going to lose their shirt.

"If you choose to go on, speak to the matter as a note investor, one who has purchased notes, not as a Realtor."

Sorry for stooping to your level but are you stupid or something? What does me being an agent have to do with buying notes, they're mutually exclusive?

I can't believe I wasted 10 minutes of my life responding to such a dumb, non-constructive forum post.

In the land of pipe dreams, buyers materialize out of thin air. Got it.

What did I say in my previous message?

Let's keep telling newbies to find leads without buyers so they can fail and then complain that wholesaling ain't workin'!

:/

The truth is there is virtually no chance you're going to wholesale something before your wife becomes an agent. Maybe 1% if you already know buyers.

The biggest issue with people on this forum who talk about wholesaling is that they focus all of their attention on finding sellers, and mention almost nothing about building a list of buyers. And by buyers I don't mean some dude that answers a Craigslist ad saying he wants to invest. I mean a guy who actually has money and can close a transaction quickly.

If you want to get involved, which is great, your #1 focus should be networking. Go to investment group meetings, go to auctions, go to trustee sales, go to chamber of commerce events, go to open houses and meet agents, find the value of houses in certain neighborhoods.. That's what wholesale gurus should talk about way before finding a seller..

The note investor is the house, so that works with me.

The reason I enjoy PPR's model is that they use a statistical model to investing in notes rather than trying to cherry pick them to death. This is difficult when you're starting out because you don't have all of the data but you develop it over time.

Say you invest in $5,000 delinquent notes and the expected value is $10,000 because you're buying notes with partial equity or something. Would you worry about every little detail and lose sleep at night, or would you buy as many as you can knowing that on average you'll double your money?

You're going to get wiped on some, you're going to break even on some, you're going to make money on a lot of them.. in the end you'll be way ahead if you bought the right type of assets at the right price and processed it correctly.

In my case I know the answer is obvious, I'm going to try to buy as many as I can while the prices are undervalued and people are freaking out about the shadows on the wall. Makes no difference to me if I lose on one. As long as the conditions remain the same, the expected value of the investment is significantly in our favor.

ie if you flipped a coin and you had 60% to get tails, you'd play tails all day every day and you wouldn't worry about "losing your shirt".

PS: You don't need to know every single law and regulation. As you mentioned, it's impossible as they change all the time. That's like saying to be a landlord you need to become a mortgage broker and to open a title company.

Like the others mentioned it depends on the brokers and what they offer.

The more services they offer, the more they will ask you to be committed. If they have full time staff, pay for your E&O insurance etc.. they want people that are going to be active.

Same if your broker shares leads with you, they are only going to want active agents.

On the other hand if you're left to fend for yourself and you pay a few hundreds a month for desk space, odds are they won't care.

I've had success marketing to that kind of list but I felt like it was too much trouble/time for little or no gain.

Handwritten letter worked well.

The biggest issue is the vast majority of them are either vacant, very underwater, have extra liens on them, etc.

Here's an example. Found a guy in a decent neighborhood who would have sold me his house np for $80k, what he owed on the mortgage. Problem is he had put his house as collateral for another 400k for his construction business before the market crashed. The house wend unsold at the trustee sale 3 weeks later for about $81k.

Could you pick up a handful of short sale listings from it? Possibly, but I don't feel like it's an optimal use of time. Might as well buy them at the trustee sale and wipe the extra liens off.

I feel like the key word is professional. I don't know Ned personally but from reading his posts here, he seems like someone who does this as a business, not some random guy looking for the next magic bullet. You know, the people that just wake up one morning and call themselves wholesalers with no money and no plan.

Whether it's wholesalers, agents, inspectors, some people are just motivated and competent while others aren't.

I'm still kind of surprised that you did not find one of those competent wholesalers in Atlanta. Sounds like an opportunity for someone from BP to take that spot in that market.