All Forum Posts by: Darren Eady

@Eric S.

I've been told the best rule is a "three-touch" rule where you work with someone at least three times through email, phone, website before you can call them a client with an existing business relationship.  

The no "public offering" rule is to keep people from advertising "Notes for Sale".  

I sell private mortgage notes as well, in fact, I can't keep any inventory because people buy them so quickly because they are making 12% on their money.  I work with quite a few people in BiggerPockets that I've met in this forum.  I've included them on my email blast once a month, communicated outside of BP on email and through phone calls, and I definitely now call them my clients.  They hold many of my performing mortgage notes.

I met with a securities attorney a few years ago and had this spelled out for me.  If you own the note/trust deed, you do not need to have a securities license to assign the note to another party as long as you do not fractionalize the note (keep a portion of the monthly proceeds), make a public offering to sell the note (has to be a client), and you cannot guarantee performance.   I think providing additional insurance will also be helpful in selling the note.  Good luck!

Go to a local bank near the properties and show them your spreadsheet including rents, expenses, etc.  Make sure they do not have a maximum number of loans you can hold or a minimum loan amount, if these values are low.  Hopefully you qualify, but a local bank may not be forced to follow Fannie and Freddie guidelines so they could approve your loan based on common-sense underwriting (which the larger banks have moved away from years ago).  Good luck!

Some banks do not have minimum loan amounts.  Keep trying the local banks close to the property.  If there is a Talmer Bank near you, they do not have a minimum loan amount.

@Kelly Byrd

I've used my 1st position HELOC for many years for real estate investments. Performing mortgage notes are probably the best fit for a passive return.

@Bill Gulley

You're probably right Bill, most likely I'm behind the times when it comes to lease options to owner-occupants.  I deal with nearly all non-owner occupied properties now.  

Hopefully Trump will find a way to cancel Dodd-Frank and remove the CFPB and we can call get back to regular contracts again without having to look over our shoulder for Big Brother.  

@Scott Scharl

Scott, you can agree on almost any situation that is comfortable for you and the person who is hoping to buy the home.  I would not give up the title of my property without someone putting a significant amount of money down (maybe 30-40%).  This amount would be sufficient to get back a thrashed property after going through foreclosure.  Any less than this, you are opening yourself up for potential problems on a contract sale and the costs associated with the deal going bad.  It's up to you, of course.  I can only tell you what I would or wouldn't do.  I would set this up as a lease option to buy with the potential buyer doing all repair, etc. until they actually purchase the property from you in full!

Rather than giving title on the property to someone that may or may not be able to re-pay you over time, have you thought about keeping the title to the home and doing a lease option to buy (in your case sell).  If they do not perform, you won't have to foreclose to get your home back.

I work with the Note Servicing Center in California.  They've serviced over 4000+ notes for me over the last seven years.  Reach Irma (below) if you would like to speak with them.

@Irma Moreno

I have money and a proven system to buy and hold rental real estate.  I would like to possibly expand to Memphis, TN and/or Kansas City, MO.  If you live in one of these areas, know how to find, rehab and manage rental properties in the C+ to B ranges of properties, and are currently full time in doing so, I'd like to speak to you about creating a portfolio of homes together.  Thanks!