All Forum Posts by: Jay Raught

Awesome! When you put money out like that I look at it as an investment. It will pay for itself ten fold, plus you get valuable resources to tap and contact if you get in a bind! Thanks for sharing Bob.

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It was a note. I had a contact in Plano drive by. I will keep you in mind as we look over more assets. @Christopher Winkler

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@Laurence K.!! I just sent a person by a property in Dallas to verify a few things. BPO's by the internet are awful. Zillow is not one to rely on alone. I use four different sites, then I still estimate low.

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@Bob E. is that where you started? I took the approach of educate, educate, and JV with someone who owns notes and has experienced note mentors behind him. I know we cannot all take that route. I just wanted to share.

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What is everyone doing with their TSP once they separate from service? I just took mine and rolled it into my SDIRA.

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This partial success is related to the Note side of things.

In Sept I purchased three NPN 2nd position notes. After closing the purchase and having them boarded with the servicer I started the process of borrower contact. The first contact was the RESPA letter, when we received no response, we went with a door knock to verify that someone lived there and to let them know we own the debt. Third step was the legal process of foreclosure.

The borrower made contact and wants to keep the property. Sometimes hitting them with legal gets them to come forward. Hopefully we can workout an agreement to get them back on track. I will keep you updated as things progress.

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Oops!! Thanks for clearing that up @Dmitriy Fomichenko

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@Gary Baker I own notes, it just takes time to find the right deals, the lower price points come on the lost causes as you have stated. The rates of return are much higher than stand investments and I would rather deal as the bank over the landlord. This is not a get rich quick investment. It defiantly is methodical and yes there is risk. Just like there is risk walking down the street!!

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@Travis Vizier Notes, check out the Self Directed IRA route. The rates of return are so much better on them over the stock market. Darren and Peter are correct!

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Originally posted by @Anthony Antonacci:

Notes in General

1. What is the difference between 1st/2nd position and what implications does this carry for an investor?

First position notes are a contract that indicates the amount owed on a property. The position is an indicator of who has first rights of foreclosure if the borrower defaults

2. How can an individual investor who is unable or unwilling to buy notes solo get into owning notes? PPR and other services a route?

PPR, FCI, Watermark exchange are possibilities, sometimes note holders will sell one offs. You can also look ton JV on deals.

Performing Notes

1. If these notes are performing, why would someone be selling them at a discount? Are performing notes more commonly acquired through owner financing? How do you locate these deals?

The note could be a re-performing note and the note holder may wish to move due to the exit strategy they had upon purchase of the note. To locate the deals, network, ask questions like you are etc.

2. Can someone explain the interest to be reasonably expected in a performing note? If it is a residential loan at 4%....is this your rate of return?

The rate of return will vary on the purchase and many other factors.

Non-performing Notes

1. Strategies are to a) restructure and make performing (to hold/collect or sell note later) or b) foreclose and secure the property for sale. Can someone provide feedback here and/or expand upon this?

My strategy is to reinstate the loan, modify the loan to help the borrower, REO if they cannot or DIL, Rental if it gets to that point.

2. Certain states are more favorable to purchase these correct? I am in Illinois which has a very long foreclosure process as compared to Texas. Would it be less ideal to buy non-performing notes in a state like IL?

I target notes in about 5 -10 states. Some states have more deals than others, some states are best to avoid.

3. These are often bought in bulk by large investment groups...what kind of quality is out there for a small, individual investor?

There are deals out there for the small investor.

I hope this gives you a basic idea of what you are getting into. Also check out the Note MBA podcast. There are over 60 episodes related to notes. If you have any other questions feel free to reach out and I will be happy to answer any questions you may have.

2 Votes

All Forum Posts by: Jay Raught

Jay Raught has started 8 posts and replied 244 times.

Post: New To Note Investing? Here's where we started...

Post: BPO not even close to true value

Post: BPO not even close to true value

Post: New To Note Investing? Here's where we started...

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