Eduardo,
Don't do it. How do I know what I am talking about? I have done 1600 note purchases since 1995 in over 40 different States. I can teach how it works better and faster than he can and I don't want any of your money.
Up front, here is my warning about buying notes. Note-buying can be great and a great business, but here are the pitfalls:
1. Know you are only buying a mortgage! You aren't getting the deed, you have no connection with the owner, and you could be stuck in this deal for years with zero income from your investment, because the owners learn how to master the BK process and you are simply stuck. You aren't in control of the process and might get a house which is totally gutted on the inside. Are you ok with that? Me either. Sounds like I am trying to talk you out of this, but I am not. I am letting you know what might happen. This are the truths and how to deal with them.
2. If I get a list of notes from a bank, I am going to each property and do all my homework before buying anything. I am going to the recorders office; I want to know have they been in default before, do they have any liens, etc. Next I go to the Courthouse to see what judgments are against the owners, are they in the middle of a divorce, is someone about to go to prison, etc. I need to know all these things. I need to check Www.pacer.gov to see if the owners have filed a bankruptcy in the past, and if so, when and how many times.
All that data helps me figure out who is toast and who isn't. I need to know how to approach the owners, and to know if they they are toast, regardless of what they say or think.
Now I need to talk to the owners, to see what their intentions are, are they going to be easy to resolve this or will they stay till the Sheriff shows up to evict them.
Buying notes isn't a good place for a beginner to start. Why? You need to know:
How to get the owners to deed you the house.
How to create a win for the owners while still creating a win for yourself.
How the Bankruptcy process works and how to win evertime you go to court.
How the eviction process works.
How to get a deed when an owner is in jail or prison.
What to do with owners that have mental problems.
Don't ask me how I know this. I have been in some amazing ugly situations in my investing career. I got into note buying immediately without knowing anything and made every mistake in the book, so I know what works and what doesn't. I have helped friends who lost their job stay in their home without making payments for over 7 years. At the end, the bank on their own accord, sent a $1,000 check with a note, please just let go of the home. Kept another home from going to sale for 6.5 years, all the while, no payments being made.
I am not trying to brag, I have just this so many times, I know what works and what doesn't, and all the pitfalls along the way. I would put my experience over anyone else in the Country.
If after reading all this, if you still want to buy notes, connect with me and we can chat more in depth on the phone.
Mark
