All Forum Posts by: Connie Chan

Just curious, how do people price the value of a mortgage business? I guess different valuation methods for originators, lenders and servicers. But anyone have any idea how the market values these companies?

@John Corey holding onto them. I’m just picturing the hypothetical, if my neighbors had low LTV and needed a loan against their house but the husband is recently out of work, it seems like a low risk loan actually. Of course I hope they make all their payments but if they didn’t I know the home would retain value. Hence I would be open to a really low interest rate in that case. Am I thinking about this wrong?

@Stephanie Jones complete passive income = real estate notes! They still can offer great returns and truly are passive. The phrase is no more tenants and toilets :-). Bigger Pockets has a great section on notes to get started. Basically you are buying mortgages that have steady predictable yield. No legal liability and more liquidity if you want to sell all of it or part of it down the line. Downside is no tax write off but it’s a great option for truly no work passive income.

I know the interest rate is directly tied to risk and neighborhood, first lien, performing etc. Is there a floor for what interest rate you’d accept— for example a house in a great neighborhood with a low debt to equity ratio?

Such fabulous input. I have a lot more reading to do. One more question, where do you guys tend to find your notes? Is it via personal relationships? Or any particular websites you recommend?

@Jamie Bateman thanks so much Jamie. This post is gold for people new to the asset class.

Reading up about real estate note investing and all the benefits it has over buying actual rentals. Does anyone have thoughts over which strategy is smarter? Also any favorite resources on how to get started?

@Ramy Man I use Tellus and have had really good experiences with their support. It also does rent collection like cozy but has other features. Also their screening and listing service is free. Main thing for me is I wanted a mobile solution since I’m always on the go. Plus I like how the app feels modern. Tenants have liked it. Most of mine use auto-pay but there are still three that prefer to pay manually each month. For them being able to do it on the phone with one tap versus waiting to be back at a computer makes a difference.

@Scott Armantrout a leak isn’t expensive to fix but you want to make sure mold hasn’t spread throughout the walls. The answer highly depends on what amount discount you think you’re getting due to the fix. Which depends on the neighborhood and other specifics. I’d say water damage though is risky. Easier things are cosmetic fixes like updating floors paint appliances bathrooms and kitchens. Those don’t have as much “unknown” cost.

@Isaac El I believe FHA loans require insurance for the duration of the loan so it can end up being very expensive money. If you can get a confirming loan you’re probably better off although your mortgage broker should be able to run all kinds of analaysis for you to surface the best option.