@Bill Gulley
Your right Bill I got ahead of my self there.... while I have bought and sold many notes I am sure I am not the top dog in that game by any stretch.
However I have never built a home and then sold it on owner contract. I don't do anything owner occ in the note bizz I only buy or make new loans on commercial properties non owner occ. When I build and sell homes it to a homeowner that gets a mortgage and we are cash out.. There is NO such thing as OC in our current market here in Oregon. 5 years ago yes.. But not for the last oh bout 3 years. Unless its an odd ball property or some very high end or someone is paying far over market for it.
The point that I was trying to make and did not make very well. Is back on point where there are seminars one can go to and mentoring or guruing for the note business. there was a buy in Denver can recall his name and he got shut down by the feds. And I could always tell when someone had just bought his system.. they would have an add on craigs list ( I was looking to sell some of my OREO paper and when you get them on the phone they are running down a script and had no clue as to what they were doing).
There are companies that ( and they are probably some of these other people on BP that I should know what they do but I don't that specialize in very low value notes that get sold in tapes by banks all the time).. I have seen many of these tapes over the years. And yes they can be bought cheap but they are scattered and I really look at these types of investments much like going into Detroit and buying homes for 1k or less. I know many of my past borrowers that make a living trading these very low valued homes in Detroit. and other mid west rust belt markets. So yes its possible to buy a note and make a huge return but like owing a home in Detroit that you paid 1k for and sold to some unsuspecting Cash flow investor for 30k and made a whopping % profit its not sustainable @J Scott like J Scott mentioned.
And the idea in my mind that you can take newbies that go to course's and teach them how to buy non performing assets and then go through the foreclosure process for the reinstatement process while it can be done I bet a fair amount of them ( just like cash flow investors buying Ghetto) the assets are the same and all the same troubles come along with them.
At least that's my view. So I go back to Hey for me personally I would rather buy a nice performing note why take on someone else's troubles. Unless with this caveat It was going to be my Business focus and I was going to become very good at it and do it basically full time.
Exact same thoughts I have for owning C and D class rentals one needs to jump in with both feet to be successful at that arm chair investing in these asset class's leads to a lot of lost money.
