All Forum Posts by: Gregory Childs

Ok I am trying to work out what would give a note the most value. And I am coming from a position of little experience in note origination.

Let's say I took a note back for a property. Appraisal $100k. Note $75K terms at 9%, 360 months with a balloon (5 to 10-year). Assuming the buyer had a FICO score greater than 675 with DTI under 45% what could I sell that note for? So I could get my cash back out.

I know that is a little generic example but any insight would be appreciated. Would it have to season in order to sell it? What makes a strong note?

Thanks,
Greg

Call him - letters (just like emails) have no context and in some cases can be misconstrued.

Be friendly and have an agenda infront of you for the call - just some notes of the salient points you want to discuss. The goal of the call is just one thing - to have a face to face meeting. Once you have that appointment scheduled, get off the call! Misssion accomplished.

Then, if you want, you can write him a thank you note - telling him how you are looking forward to meeting him for lunch on x/xx/xx and that you would like to cover the following points at the luncheon a, b, c, d. That way he will have an impression of professionalism and your intention to cover a business agenda at the meeting.

Pick somewhere that is quiet and that you will not be rushed to turn the table - and pick something to eat that does not require a knife or spoon to eat. So you can always have a hand free to make notes. Understand that it may take 3 or 4 meetings to get a deal struck; but always set a follow up meeting while you have him infront of you. That way you aren't chasing him down for the next appointment - that will reduce your anxiety.

Have confidence in yourself and be real - that is always the best policy. BYW, the longer you wait to make the call the harder it will be to pick up the phone.. do it today.

TTFN,

Greg

You are in a good position, take a breath and look at what you have to offer.

Most people who have capital to invest are looking for someone they can Joint Venture - where they still have a level of involvement (comfort), but none of the operating responsibility.

Just make a list of what you can bring to the table, then call him with the intention of sitting down together for a frank discussion - to identify the kind of investments he likes to be invoilved in. Once you discover that, you can see if their is a synergy between your skills and his desires/goals.

In general, nobody wants to be sold. So let him talk 80% of the time - make notes, and then come back a few days later (once you have had time to reflect on the meeting) with some ideas that you feel are appropriate for the relationship.

Take your time, plant some seeds, build a relationship and then will come a harvest.
TTFN,
Greg

We just finsihed a rehab in Chicago that had a significant basement leak and mold. We had to put a french drain around the house and rip out the sheetrock and insulation in the basement.
We had a buyer mold inspection last week and their was no more mold found than is reasonably expected in a moist climate.
As long as you budget for addressing the "cause" and not just the symptom you'll be fine.
Alternatively, you could just market the property to microbiologists as a test lab facility.. maybe not.
TTFN,
Greg

I like to see faces! Even though I am looking for information I want it from a trusted resource and the face adds to the credibility.
I really like reading J Scott's posts, not only because he has great insights but also because he comes across as belivable - the avatar is part of that persona.
I just wish I looked cooler in mine - must be the five kids and years of abuse of chocolate chip cookies.
TTFN,
Greg

I like Constant Contact from a marketing perspective as it offers great features at a reasonable price; but you have to be online to use it.
ACT! is also a great tool for offline needs - it has integration into Outlook and you have so many more fields to capture information. Also, with ACT! it is very easy to learn and affordable; especially if you buy a previous years version - I use 2009 and it has all the features I need.
TTFN,
Greg

Jimmy,
It sounds like you have access to funds - why not partner with someone. Go meet your local REI club presidents and ask for a referral - or look at the local groups on BP.
Most people looking for partnership deals have only sweat equity - it seems like you can offer some skin in the game as well. Do a couple of good flips and build up some capital reserves - that way you don't have to concern yourself with loans.
TTFN,
Greg

I have friends who own both cond/homes (mountain/beach) in resprt area. In fact, I just stayed in a cabin in Blue Ridge GA two weeks ago.
Anyway, none of them have seen the appreciation or the cash flow they expected. In addition, the management costs eat away at the pottential returns.

Certainly, here on the west cost of FL, the condo associations are filing for bancruptsy by the score and the assessments are being shared by less and less owners as the vacancy/foreclosure rate continues to increase. Its ugly.

TTFN,
Greg

I am not surprised that no realtors have posted. For a while I was using the Active Rain forums and would pose similar questions and would get little or no response. I think that as we look at professional realtors (people who are in it for the long term) we have a transactional model and a relationship model of doing business.
1. In the transactional model it is about ease of process - you tell me exactly what you want, I find it, you buy it, next. It's simply about volume.
2.In the relationship - you tell me exactly what you want, I find it, you buy it, next. But here it's not about volume but about finding the "cherry deal" the "home run." It's about professional pride and value.

In the first your approach is about transaction speed, the second about transactional value. Just find out who you are dealing with and build the relationship based on those terms.

TTFN,
Greg.

Nick,
It's hard to follow this thread - it sounds like you are a wholesaler/bird-dog. My comment is that whether you have a list of 15 or 150 investors you need to build a database/spreadsheet with exactly what they are looking for in an investment property.
As you go into the deal process you should be pre-selling the property to your investors i.e. "hey guys i'm working on a deal it's looking good, should have it under contract by the end of the week, here's a proforma, are you interested?"
You only want to do this if you are 70% certain of getting the deal - but that way you already have a prequalified list and can flip it immediately on getting it under contract.
Begin with the end in mind. This will remove the panic from the process and also make you more attractive to your investors - bringing them the deals that they are looking for, rather than just another spammer of properties.
It's all about relationships.
TTFN,
Greg