All Forum Posts by: George Frye

@Will Barnard No I dont have the actual note in hand. I am sure the owner will get it to me. I just wanted to do some pre evaluation. Yes I am sure I can get a great double digit return. I just wanted to know how I should go about evaluating this note.

I am researching a note I came across. AT first it seems like a pretty standard note. It is a Mobile home with the lot for sale for 45000. The Owner received $20,000 down and carried a note for $25000. The interest rate is 8% for 45 months. 2 months have been paid on time. However the payment schedule is kind of weird. They pay $500.00 8 months out of the year and $1000.00 4 months out of the year. So How should I go about evaluating this note so I can either decide if I am going to purchase this one or pass it off to another buyer. Please help.

@Bill Gulley I wasnt asking about bidding on the note. I was talking about learning about the documents and what a complete package should look like. I noticed they have a very detailed due diligence package.

I got an email from Auction.com and they are selling notes. Now I am very familiar with them as I have bid on residential with them before. However I just recently started paying attention to their notes. Most are sub-performing or non performing. I am not sure about buying on there as you cant negotiate your price. I was wondering what did some serious note buyers consider of Auction.com as far as learning the research of notes since they list a due diligence package with every property. Is this a good way of learning what a good package should look like and what a note buyer should be looking for?

Also has anybody actually bought a good deal from Auction.com. Would love to see what people think of this site as far as a learning platform of what to look for. I would love to hear from @Bill Gulley .

@Bill Gulley I am not sure I understand what you mean by partnering. Should I find somebody in my state who is already investing in notes or should I look outside of my state. I was always told I shouldnt invest in notes outside of an area I didnt know to well.

Doug, I know that I can not invest in Georgia by myself, however it is the area I am very familiar with and not sure how to truly work notes in other markets. Also as far as adding value to a potential partner. I was more looking to do the leg work(research, evaluating, and managing) of the notes for any potential partner. However it seems as though you are saying partner with somebody who has already done notes. Im not sure what value I could bring to somebody who already is doing this other than my money.

Im not trying to be one of these fly by night note investors. I have seen so many guru courses on wholesaling notes, buying notes with no money down, the quick buying of notes using hedge fund money. I personally dont want to pay tons of money to not learn everything about notes. Im looking to build a stable portfolio of notes that I can not only build an income with but also have something for my kids and their kids down the line. I started out wholesaling houses and noticed all these get rich quick wholesalers, so I moved on to a less crowded pool (or so I thought) of fix/flip/ or hold market. Well as they say when your taxi driver starts talking about being in your market its time to get out.

Bill buying noes is very tedious learning, I think that is what excites me. I know the get rich people arent trying to learn how to work a note, how to research a deed of trust and other mortgage documents. Is it boring yes, but nobody ever said the note business was sexy. But boring keeps the fakers out.

Doug I am going to call you tomorrow so we can put down a plan for what I am trying to do. Im tired of sitting on the sideline watching.

Thanks @Bill Gulley , I tried to mention you but for some reason it would not allow me. I have been in the real estate business for about 5 years and truthfully have gotten board with it. The fix and flip was not something I enjoyed and being a landlord made me want to get violent sometimes. That is how I found notes. I have been researching for almost 2 years and I feel like it might be time to just jump in the pool and quit looking at everybody else swimming.

As far as using other peoples money, creating limited partnerships with people and doing all the leg work for them while they put up the funds for the notes was my goal. I just wasnt sure if anybody has ever done that and what should I be looking for.

So are you saying I shouldnt work in notes? Or are you saying that I need to possibly do more learning. I just didnt want to get stuck being a book investor instead of cutting my teeth on the real thing.

Ok. I know there might be another post similar, I just cant find it. I have read everything that was told to me. I dont want to get stuck just studying. I would like to actually invest. I am looking at starting with residential, and moving up to multi family and possibly commercial. I would like to know where should I start with finding notes. How should I find motivated note sellers?

I also possibly have the opportunity to invest with other peoples money through a financial planner. How would you suggest that I invest using other peoples money and also make a profit myself through these notes?

All advice or constructive criticism is welcomed.

@David Stratton yes I am very familiar with the Note group in Smyrna have attended the meeting before. I wish I could make more of those. I usually home for about 30 days a year which only allows my to make one meeting a year.

@Bill Gulleyed. To own a note in Georgia you have to hold a state issued license." I guess I need to do a little more research into whether that means I can invest in a note through a brokerage.

I definitely understand about getting bored. However Notes have captured my attention because its not a business you can just throw up a sign and hope to turn a profit. I love the challenges it brings. I truly love learning about Time value of Money. If you can stick to what you know and then think creatively, the pay off with notes can be great. That is the fun part for me.

@Account Closed I have reached out to Dave Van Horn, he is a very good guy. I have done his Performing notes course. maybe once I learn the business for a while I will jump into non performing notes.

For now my days are filed with learning and reading trust deeds, riders, addendum's, and loan origination forms. Not the most exciting thing in the world, but if you are going to do notes you have to learn the language.

@Bill Gulley Im not sure if I have note fever or just tired of running in the same REI wheel. I didnt say I didnt know any geographical regions, I said I didnt have a preference on a region since in my home state of Georgia, I am not able to invest in mortgages unless I am a licensed broker.