All Forum Posts by: Cody Cox

@Mike Hartzog is exactly correct in that the purchase price of the note by the hedge fund is not public knowledge. What we do in the note space if run an ROI caluclation that determines what your costs will be and how that mixes with the entire transaction. In addition to taxes, you should be very certain about value, and any other title issues. You might call the city for any code violations that would transfer to you upon buying the note. If all these factors work in the numbers, then submit the offer.

Sorry all, I have to withdraw. 

Thank you for the mention. Your list of books are really good. @Dave Van Horn is an excellent resource.

I am registered and will be attending. This is my first note conference and I am looking forward to making connections.

This sounds like a good networking event. I am going to try and attend.

Any mortgage lender, at that value level, is going to require you to have some skin in the game. While having a seller carry-back 2nd is acceptable in most situations, they will require you to have at lease 5%, probably 10% of your own money into the transaction. They will review terms of the 2nd mortgage and will require full P&I payments, based on no more than a 30-year term, but would likely allow a 10 year balloon. The terms you suggest will not pass a lender's underwriting criteria.

Check out questira.com. They are running a special through month end (February). 

That is correct. Remember that your SDIRA is a separate entity than you, and you cannot personally access any funds in that account until you reach at least 59 1/2. Even at that point, it needs to be disbursed from the custodian. There likely will be some other IRA folks chime in after my reply with additional details, but essentially you are correct.

Foreclosing on an NPN, in my opinion, is not a primary strategy. It is generally the longest time and higher costs, but it does provide an opportunity for a lump sum payment at liquidation, provided you buy right. My model is to purchase NPNs where the borrower is in the house, and attempt to find a workout where they can begin making payments, often providing some incentive for them to stay on track. This method provides a monthly cash flow, and once the borrower has made 12 - 18 timely payments, the note can be resold as a re-performing note at a higher price. This strategy provides for a much better overall return than foreclosure. Yet, I will admit, this happens only about 30% of the time. I have 3 REOs on the market and will be accepting 2 DILs in February.

I have my primary checking account with a local credit union. Plus they hold a checking account for my self-directed IRA.