All Forum Posts by: Morris Lucas

i have a few questions...

what's best way to find accurate value of deal and how do u get real comps? In other words, how do u tell instantly if it's a deal or if you'll be sitting on it wasting your and seller's time?

Do u do your own repair estimates? If not, what is cost to get this per property?

How much marketing budget should be put out monthly for direct mail/signs etc to get good deals to come your way?

Do you invest or do jv partnering in Atlanta area?

Really interesting topic, wanted to jump in and ask;

Bill, so basically if i buy a note, it is in my best interest to work out payments with the borrower rather than forclose; if i do, i should only expect to get back what the face value of the note is, right? (unless i convince the homeowner to give me a deed in lieu?)

By the way, kudos for continually giving the "truth" on these subjects without the pie in the sky crap. Very hard to find out the hurdles and headaches to strategies, (which i am more interested in) then always getting the sugar-coating from seminars and gurus.

Andrew; check out gcccsa.org for finding lien information for georgia property.

Hi Ned!

I'm way ahead of you! I actually started researching a few tax sale properties coming up in Atlanta, and will start calling the owners to try to work a deal. I know someone who has access to Lexis and can get me current address and phone numbers(couldn't believe they actually produced a WORKING phone number).

Before I start following up and making an offer for a deed, I was wondering about due diligence. I have a login for the state lien index which shows all the deeds, warranty deeds, liens etc recorded for a property. I assume researching this list of mortgages, liens as well as driving the property is enough to make a decision? If not, what else would any of you recommend I look into before approaching the homeowner? Thanks!

I wonder how much experience you would need to do a complicated commercial deal such as that? i know the criteria for buying is completely different from the standard ARV, equity formulas for residential stuff. I would imagine a beginner would just botch it up, even working at it for a year.
Still, the idea of making 60-150k on one deal seems more attractive in a way, then doing a bunch of residential 5-8k deals over and over.

BE CAREFUL!! I know i have given at LEAST 40 hours or more of my time to these clubs and hundreds of dollars in seminar fees. Most of the time, i leave with nothing but a sales pitch for a course. There is MUCH more valuable information here on BP, TRUST ME!

I try to track how many hours i spend on RE blogs, going over legal ads, visiting courthouse, reading books, seminars, etc, so I can say I have done my share of REI clubs. You definitely can meet other investors, which is definitely a plus, but IMO you are better off "jumpin in" and start marketing, making offers, getting title cos, finding ways to contact owners, etc.

Thanks for the feedback, Steve, great insight as always

Dave, this is good to hear. I was concerned about how difficult it would be to actually find on of these liens to buy.
I will read your blog and also PM you as I would like to know a little more information on the specifics of your companie's note portfolio you offer to investors.

One thing i can't get my head around, though, is if the 2nd lien holder has all of these rights to protect it's interests...modification, foreclosure, etc...why on earth don't they exercise it as opposed to selling the lien to an investor for chump change?

Thanks for all of your comments.

Thanks for the insight David, this is invaluable stuff! May not be the best option for a beginner, which is why, as i stated, like to research, research, research before jumping in. I chose to look into tax liens, HOA, notes, investing etc because i do not like the idea of tenants, fix-up, repairs, etc. It is a good point that having that position does give you RIGHTS, and the 1st has certain obligations to your position before they completely wipe you out.
I appreciate you sharing the knowledge on this subject, i'm going to keep digging away for information on this strategy.

Thanks Kevin, i would seek legal advice before making any moves, you're
100% right.

David, appreciate the breakdown. I guess if you are considering SS, foreclosure, etc, although you have the legal right, you have to keep in mind the 1st can cut your head off at any given moment.
i like the idea of the vacants, but here is a question speaking of equity, a tad off topic...
Every investor wants a property with a ton of equity...i'm wondering how you can find out the equity in a property without getting that information directly from the homeowner or the mortgage holder..? I know you can look up the title, liens, security deeds, etc in the courthouse, but that won't tell you how much the person still owes on it, say, 10 years from the loan origination. Other than having access to the homeowners mortgage statement, how can you get a true equity estimate?

Good morning everyone!

I have been trying to do research on liens and note investing for the past couple of months, as it seems like a strategy i will venture into, but like to get extremely well informed way before i make a move with real $.
I think i have the tax lien buying/selling/interest/foreclosure process pretty much understood, but my question is with notes. Mainly, if i were to purchase, say, a 2nd position note at a steep discount, what rights do i have if it is NP note? Can i try to foreclose on it before the 1st mortgage?
Can i wholesale the property to an investor pending the 1st mortgage? Lease option it to an owner-occupier subject to 1st?
Also, would it ever be a situation where it would make any sense to purchase a 2nd lien on a vacant property where homeowner has left?
Seems as though it is a very risky spot to be in if you don't have a clear strategy, and if your state has fast foreclosures.

Finally, would local smaller banks and credit unions be a good place to cherry pick these kinds of notes to purchase, or do you have to do the direct mail, website marketing, drive-around deal like other strategies to find these mortgages?

Thanks for any input, and if anyone has any blogs or recommended reading on the subject, please PM me!

I am also starting out REI in Atlanta trying to focus on Dekalb and Rockdale County. PM me perhaps we can partner on some marketing and
ideas. Welcome to BP!