All Forum Posts by: Joe S.

We started investing in mortgage notes that had low balances that were CFD's when we got started. You could find loans for under $10k. You could then turn and multiply those by finding some smalll JV partners. I grew from 0-75 deals pretty quickly which in last 3 years we are now over $40M. One of the keys for us: focus focus focus and not chase they next hot thing.

Joe S. - We have found that each servicer has their own strengths and weaknesses.  We primarily utilize, FCI, Madison Management Services, Allied Services and Provident Loan Servicing depending upon where the loan is at, what we want to do with the loan, who the borrower is and how much follow-up we feel the borrower will need to stay on track. I honestly don't remember where that loan went to. It has been too long ago and to many deals ago.  

What’s one real estate mistake you wish you could take back?

I have a couple notes there now, day to day payments and disbursements have been good, with on time communications of receipts and transfers.  I have had other notes serviced there with satisfactory results.  I know other investors who have reported issues and I recall there were delays in communications when getting my accounts set up there in 2017 or 2018 but it has been easy to add notes to my accounts since then. 

I purchased a performing note from an individual that was serviced by August REI and I had to literally tell the asset manager of the loan what they needed to do in order for the loan to be transferred. I don't know if she was new or what, but I had to provide step by step instructions on what their responsibility was and what they needed to provide to the new servicing company. The loan finally got transferred ok, but August REI lacked knowledge and speed. It was a slow process. That is my experience of 1, so my experience may be out of the norm. Not a good first impression however. We have no notes serviced by August REI.

@Becca F.

I found 9 out of 10 of these SFR in a small town in Arkansas from a wholesaler. They met the 2% rule with tenants in place so I thought I'd give it a try. lol. And I bought one off the MLS there for 75k with a tenant in place paying $1200/month for a 4-2. Some needed some work but expected them all needed some work. I'm lazy and buy almost all my properties with tenants in place. Then I slowly fix them up over time and raise rents. I have 18 properties In the Dallas area that have less cashflow but better appreciation. Most of them meet the 1% rule or better in TX bought I started buying them over the last 7 years so market rent has come up.