All Forum Posts by: Cody Cox

I use Joint Venture investors that are willing to fund the transaction for a split of the return rather than lend me money. I would not take on a debt partner for note investing. I prefer and equity partner. 

my preference would be to use someone Polaris rather than a VA. The skill set is pretty technical.

Hopefully that loan is set up with a licensed loan servicer. With that, they can manage the borrower collection issues. They could even negotiate a loan modification that might allow for the borrower that was once performing get back to reperforming. 

In reference to your original post @John Roeder, based on a $100,000 principal amount, at 6.00% for 30 years, the P&I payment would be $599.55. After 24 months of seasoning, the principal balance would be $97,468.26.

If you sold it to another investor, and they wanted a 12% yield on their money, they would purchase the note for $58,641.54. Which is a pretty substantial discount.

If they accepted a 9% yield, the note purchase price would be $74,978.61. 

Just some thoughts on looking for returns when purchasing a performing note.

Its also a violation of the NDA you signed with your seller. You run a risk of being blackballed from that seller if you make borrower contact prior to owning the note.

I'm enjoy NoteCamp as well. 

Welcome to BP. I'm in the Portland, OR area myself. I am a recent President of Northwest REIA but have changed my model to investing in promissory notes. Let me know if I can be of any assistance to you. Cody

That should work.

Correct. @Jay Raught is the way we do it. 

@Jay Hinrichs since I am not buying or selling real estate (unless I foreclose), not representing any property owners, being a note investor does not require a real estate license. Since I am not originating any new loans, not carrying any paper or providing seller financing, I don't need an NMLS license. 

I am purchasing existing debt and boarding the loan with a mortgage loan servicer with the appropriate state license require for loan servicers. The only exception is if the asset is in Washington, which requires the debt purchaser to be registered. There is some movement in other states to follow suit.