All Forum Posts by: Dave Van Horn

@Paul Vincent

I started over a decade ago, when it was a different time and place in the note industry but two things I wish I knew were:

1.) How to better vet and purchase assets from a note seller (especially from sellers that I didn't know or those who didn't have a reputation in the marketplace). A lot of it can only be learned along the way (much of which we learned on the buying side) and is nuanced based on the seller a bit, but having a screening process in place is key. And the bigger you get as a note buyer, the more important this screening process becomes. Some criteria to look for: 

- are you being vetted as a buyer and what's that process? Is the seller selling to just anybody or do you have to complete a buyer application, do you have to provide proof of funds, etc?

- how professional is there outfit? What is there communication like, documentation like, etc?

2.) The thing I wish I knew was how to execute and monitor more efficiently. Sure, we know now how to execute on 1sts and 2nds (although we're still constantly learning), and how to complete surveillance on our servicers, attorneys, and other third parties etc. to @Patrick Desjardins' point. Again, a lot of that is learned from experience but you have to be on top of everyone to the point where it can turn into a full-time job if you're portfolio is big enough. This is more-so the case with NPN's than re-performing notes but no matter what the asset type, you still need to hold others you employ accountable.

Keep in mind, I had partners in my company (one in acquisitions and one in borrower management) starting out and still do. I can't tell you enough how helpful that has been with our business. The note space is vast and the knowledge required can be daunting, so having two partners that specialize in other key areas of the industry has definitely been a big plus and something I probably didn't even realize when starting out.

I agree with @Ryan Murdock!

If it's not selling you could also put a selling agent bonus on the listing for an acceptable offer. You may also want to consider offering a home warranty to help sell the property.

Best of luck.

- Dave

@Rick Tsai

Sure, this is possible and can be quite common. 

As you get closer to the 5 year term, just keep the lease month-to-month so you won't have any issues transitioning from the tenant to you and your wife.

And you can have a property management company that does maintenance, check on the property, and hopefully find you a suitable tenant.

Best,

Dave

Thanks for the mention @Percy N.

@Daria B.

I'm sure Henri could elaborate but he did actually talk about his experience so far on another thread:

https://www.biggerpockets.com/forums/70/topics/291...

And Percy's correct, our current offering is a First Liens only Fund and pays a 10% preferred return.

Daria, feel free to reach out personally if you have any other questions. I'd be happy to answer them.

Best,

Dave

@Christopher Giannino

I agree with @Kevin Hunter, but keep in mind there are a lot of factors that go into DTI.

Firstly, as time goes on, we don't want to make the assumption that one's income isn't going up or financing requirements stay the same (or are the same at every bank). 

We also have to keep in mind that rents also rise, and how you rent the property could affect your true DTI (i.e. house hacking or AirBNB may get you more rent for example). There's also other compensating factors like appreciation.

Kevin's right though, shop around (preferably with an investor friendly mortgage broker) until you find what you're looking for!

Best of luck.

Dave

Hi @Gregg Hutton

Unless you're managing properties that you own, in most states you need to be a Real Estate broker to have your own property management company.

Now when you become an agent you may be able to find a Real Estate Brokerage that will allow you to become a property manager with them.

But if you want to build a property management company yourself, your best bet is to partner up with or hire a broker. You could eventually become a Real Estate Broker yourself but of course that takes time, more education, etc.

Best of luck,

Dave

Hi @Disadra Adams,

I would look up Commonwealth Agency, Inc., they have an office on Broad st. and they have another in Conshohocken.

Best,

Dave

Hi @Mindy Jensen

I would recommend @Carl Fischer to talk about Self Directed IRA Investing.

I also think these guys could make for some interesting guests:

- @Douglas Skipworth

- @Brecht Palombo

- @Paul Moore

Hi @Tejas Kotecha

I would suggest calling a seller financed broker like a Colonial Funding and ask what there criteria is to buy a note. They'll tell you what they look for in a Seller Financed note to buy it. Then you'll know the most up to date criteria necessary and you'll have a sale-able note.

In terms of documentation, the safest strategy is to have a mortgage broker originate it. They can be tough to find, so you could also have Real Estate Attorney to draw up the paperwork for you. 

Best of luck.

- Dave

^I second everything above but some a few others I would highly recommend:

- Buying Real Estate Without Cash or Credit by Peter Conti and David Finkel

- The Millionaire Real Estate Agent by Gary Keller

- Timing the Real Estate Market by Robert Campbell

- Multiple Streams of Income by Robert Allen