All Forum Posts by: Brett Burky

@Robert Harpster - I should have read your post a little closer as well. I looked around a couple years ago for sites that sold the notes, but decided to market directly to potential sellers. I have been ramping that up over the last couple years and been able to buy some that way. I expect more notes to start hitting the market soon due to uncertainty in the economy due to the virus. This could drive more assets on sites like PaperStac. Make sure to do thorough due diligence in this time to make sure that it is performing and will continue to be performing as much as you can. Sometimes these sites list assets that have already been picked over, so just be careful when jumping in through those sites. Some will have good assets for sale, so just verify, verify and verify.

We have seen quite an increase and a slight change in the inventory. We've seen a lot of hard money loans recently. However the more traditional stuff is still there. As for stuff being picked over, I am sure it is there but a lot it seems is coming from Seller Financed deals.

You're right about do your own DD - that is vital.

Brett,

Does a potential buyer have to accept the sales price of a note before reviewing the payment history of a note? I requested the payment history on a note since none was provided. Paperstac created a transaction with a To Do list and the next step is buyer accepting the sales price. I would need to know more about the note before I can accept the price. Please clarify.

Robert Harpster

Good question - because I am assuming you hit the "Message the Seller" button & not "Make Offer", it shows the Seller accepted the price. It's an automatic thing because the price wasn't negotiated. As soon as you make an offer that will change.

A potential buyer doesn't have to accept the sales price until you have negotiated and come to price you both agree on. There is a blue negotiate button on the left column where you can make adjustments there.

Also there might be the note and the mortgage and pay history on the asset, check the files tab in your transaction area and see if it is available there.

Lastly if you have more questions when there just hit the support icon under your profile in the top right and we'll be happy to help you with more questions.

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Originally posted by @Jim Hartmann:

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Originally posted by @Jaspreet Baveja:

@Luke Youree - I agree with @Brett Burky, depends on your investment strategy. Even I've got a few performing notes I'm looking to sell, and investigating all these platforms to do so.

@Brett Burky - I would love to know more about this "fund" that can help bring your IRR much higher on these Notes! Good luck guys!

There are a number of them out there. There are a couple Reg Ds that are for accredited investors and those are great if you are accredited. One big one I am very familiar with is Aspen Fund. Good guys over there and I can make an introduction if you'd like.

I know Cody Cox has started a new fund as a Reg D as well.

For non-accredited there are funds like MWMfund, Automation Finance and AHP. I am not sure if AHP is still taking funds right now. I am not sure who coined the method but I think it was Cody Cox and he called it the dead money approach to investing. He has a video on it.

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Originally posted by @Logan Hassinger:

@Luke Youree

Brett nailed it, and for my favorite answer, it depends.

There are plenty of posts here on BP that go in to detail about a few of the exit strategies and I employ a lot of them.

From buying nonperforming, then getting it re-performing and selling (or holding for a high yield). Buying performing and just collecting passive income, mailbox money some might say but it’s not so don’t be fooled. Buying semi-performing for an even higher yield than performing. Partnering with a rehabber who does seller financing and buying their notes at a great price AND both parties win. Buying nonperforming and taking back a property to turn into a rental or another seller financed note. Buying large pools of loans and cherry picking what you want and flipping the rest. Buying performing and then selling a partial.

My point is there are plenty.

Thanks for liking the post!! I totally forgot about the partial play that is a great way to exit as well.

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@Al Kirk there are a lot of great ways to learn about notes. I'd focsu on whether you'd like to learn about 1st position or 2nd position.

1st position you have mentors all over the country. In Orlando there is Kevin Shortle and up north there is Dave Van Horn. @Dave Van Horn is also a very active member of this site. He's got a really good book on Note Investing that is a great starting out resource.

Our west you have Eddie Speed and Note School. They hold a really good event every year in November called Note Expo. It's a must attend event.

Dave Van Horn also has an event every year called the Mid Atlantic Summit.

I've yet to attend but have heard a lot of good things about it.

There are some wonderful podcasts out there. The Good Deeds Podcast with @Christoper Seveneny

is a great one to listen to learn more about notes.

There is a also mentors that if you want to do deal evaluation they have that as an option. I know Kevin Shortle will help look at notes with you and walk you through each note to see if I t might be something worth pursuing.

Hope that helps and welcome to the world of Mortgage Notes.

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There are a whole bunch but it matters on your investment strategy. Are you buying for passive income, well then you'd most likely just keep it and have it serviced. Then you can take your current yield and have that deposited into an account that is a fund until you recapitalize & increase your yield. That is a new one for me but an amazing way to take a 8% Yield into a 16% or 18%.

Other strategies matter for if you are purchasing a Non-Performing note. There is a the way of taking it from non to repaying again and seasoning it for 6 months and resell it.

You could always do a Deed in Lieu of Foreclosure and get the house back and then run either an REO play or Seller Financed route.

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Thanks for your question Candace. Like @Chris Seveney mentioned that is not the case with Paperstac. These notes are not combed through by Paperstac. Actually our team has taken a vow to not even look at the notes because our mission is bigger than picking up a good deal, we're trying to grow it into something amazing. If we cherry pick we'd end up with a bad reputation of having bad notes on the platform.

We do have brokers on the site, however if they are caught circulating sellers assets off the platform, we will address it. We now have users verify their identities and if they're passing around assets as their own or trying to broker in that manner we will address it. We're sensitive to that because we know that isn't what sellers came to the site to have happen.

As for brokers trying to broker notes to note buyers, we've got over 4000 users so a lot of the current note buyers are there now. Plus we've got an active outbound campaign where we reach out to different buyers around the nation to cutdown on the middle markup pricing.

I hope that answers your questions, if not please respond and I will be happy to answer any further questions you may have.

Originally posted by @Candace Pinkston:

@Brett Burky

Hi I have a question cascade funding website said this:

6. Our on-line note exchange puts buyers and sellers of notes together!

The Truth: These so-called on-line exchanges or networks are often just marketing devices used by unscrupulous brokers to locate notes. To make matters worse, they often promote these web sites to other unsuspecting brokers! They tell them they can use this exchange to find notes and broker them to investors. It's amazing anyone falls for this. First of all, any note listed on these web sites has probably already been screened by the web site promoter. If the note is worthy of purchase, the broker has already tried to buy or broker it. Therefore, the note seller hasn't gained anything special by listing their note on the exchange since only the site promoter has seen it. They haven't exposed their note to many investors, as the exchange promotes, unless their note is no good. That is, if there's something that makes their note very risky and, therefore, not investment grade their note will be listed on the exchange. Then you get hundreds of seminar graduate note brokers all running around trying to find an investor to purchase these poor notes. Note buyers will look at them but will not make offers to purchase these kinds of notes. The result is that everyone has wasted their time and money. Many times brokers will simply email us a link to these exchanges asking if we'd like to purchase any of these notes and if so to send them a commission check if we do. Or, they'll print off page after page of information on these worthless notes, directly from the exchange's web site, and fax them to us for any offers we can make to purchase them. Serious note buyers do not respond to requests like this and will never work with brokers who waste their time in this manner.

Is this true for your website/company? Thanks for your time. Any information from anyone is welcome.

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Looking forward to it!!

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Originally posted by @Jamie Bateman:

@Brett Burky, those two books haven't been delivered yet but I've listened to podcasts with---and/or read up on--the authors of each and I am excited to dive in.

On the health side, I am definitely working out more than I had been, as well (it was a fairly low bar, haha).

I am curious to see the upgrades to the site.

The upgrades really add some more professionalism to the site. We're basically doing a different signup system that lets people have 1 identity and many accounts.

We're doing this so that investors have to identify themselves. Basically when you sign up or login (only once) you'll have to put your information in and then answer some of those banker questions (did you live at this address, drive this car, etc).

Doing that will eliminate people that might have got kicked off the site and then gets another account.

It will lead to less users we know but a better userbase in the end.

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All Forum Posts by: Brett Burky

Brett Burky has started 10 posts and replied 103 times.

Post: Do you have hard Private Money Loans?

Post: Buying Performing Notes

Post: Buying Performing Notes

Post: Exit strategies for Notes

Post: Exit strategies for Notes

Post: Mortgage Note Investors

Post: Exit strategies for Notes

Post: Buying notes from paperstac

Post: Virtual Alternative Investments Summit

Post: Sharpening Your Skills During This Time