All Forum Posts by: Darren Eady

@Jay Hinrichs

Thanks Jay, I thought I might get some grief for writing that.  Substantial reserves is what I see many people lacking when they use their SDIRA or SD401k for RE investments with potential liabilities attached.  I hate seeing people get stuck in real estate . . . but love seeing them match the correct investment with their goals.

@Edmund Ricker

It is important that you purchase performing notes through your SDIRA and not non-performing. Performing notes produce cash-flow. Non-performing notes can create a larger return, but may require significant funds to perfect the situation, take over the home, evict, clean-out, rehab, etc. and many people may or may not have enough funds in their SDIRA to go through this process. I've seen people borrow through their SDIRA and also people buy non-performing notes through their SDIRA and get stuck with not enough funds in their SDIRA to create the profit they started out wanting to make. Because it is an IRA, you can only contribute additional funds so quickly, giving the potential of getting stuck on the wrong investment.

Performing notes = BEST SDIRA investment

NPNs = Potentially one of the worst SDIRA investments

Other people on BP might disagree, but I bet they are selling NPNs.

@Cristian Nicolaie

I would talk to the lending manager at several banks close to the property until you find what you are looking for.  Some conditions will be standard, but others will not.  Hopefully you'll find what you are looking for soon.  If it was super easy, I guess everyone would be doing it!

@Stephen Bagnani

It's definitely not "too late" to get into notes.  Most people are just starting to enter the notes market because a note isn't as tangible as a property and some people like to hold title to a home rather than being the first position lender on a property and only holding paper.  I like to do both myself and deal in both properties and paper.  I prefer to stay on the safer side of notes and deal with performing notes.  It's a very passive business and is not really set up to make people rich.  Performing notes are for making rich people richer as it requires money to invest and it pays a consistent 12%.  Non-performing notes are typically on the opposite side of the "Passive / Active" spectrum of investing and can make you rich (or poor if done incorrectly).  If you are looking for a place to park your money, buy performing notes.  If you are looking to start a real estate business, buy non-performing notes or tax liens.  If you are looking someone in the middle, buy some turn-key cash flowing rental properties.  I'd be happy to plan a strategy with you if you would like to connect.

@Gary Headrick

I agree Gary.  I just end up erasing most of them

@Michael Kopay

If you find them, please let me know.

@James Masotti, I believe the three-touch rule would apply.  Meet someone on BP, connect with them and email directly and they are a client that you can market to.  Just don't advertise "Notes for Sale" on a specific note before building a list of people that are your clients first.

Try local banks.  I'm not sure if Geauga Savings will go that far or Northwest Bank?

@Christina Berry

When I met with a Securities attorney a few years ago, I found that selling a mortgage note would be considered a real estate transaction and not a security as long as I did not make a public offering for the note, did not fractionalize it (assigned the mortgage in it's entirety), and did not pay a commission to someone brokering the note that was not an owner and officer of my company.  This has worked out for the last 4000+ transactions I have created/sold.  

@James Masotti

@Allen Herbert

I don't have a minimum loan amount.  If you are only pulling out 50% of the properties value, check out my website and I would be happy to help.