All Forum Posts by: Jordan Williams

@Andrew K. I learned how to deal with a death of a borrower and why it is extremely important to have all your Assignments/collateral documents in order to avoid big potential pitfalls! If you have any questions feel free to message me!

@Rick Pozos you can message me with your contact info!

Hey BP Family!

I just wanted to share with you a quick story of a successful deal we recently closed. I hope this will inspire someone to take the next step into starting to invest in real estate. I know the beginning can be very daunting because we all were new at some point. We have been investing in non-performing mortgages notes for the past two years and although it hasn't been easy to say the least, it definitely has been a rewarding journey not only financially but personal development. I had to acquire skills that allowed me to overcome my reluctancy to do things that challenged my inner element of complacency.  I think growth is probably the most important aspect of the process. Gaining the knowledge and skillset that I previously didn't have which now serves to solve problems that not only pertain to my real estate business but literally in any aspect of my life. Alright, now lets get to the deal!! 

We purchased a first lien non-performing residential note located in San Antonio, Texas. 

UPB was $60,000

FMV $93,000

3bed 1bath 1050 sft

Purchase price $16,000

Expenses $8,000

Sale Price $65,500

Profit $40,000

We made contact with the borrower at first in hopes to come to terms that enabled them to start making monthly payments again. We were able to initiate contact with the borrower (as we know can be difficult) and get them to agree to fill out and send back their financial statement. A few weeks passed and to no avail the financial statement was never received. We contacted the borrower once again and we explained that we needed this document in order to reassess their situation so that we can understand how we could help them stay in their home. The story they said was they never received the mail and that its possible that their neighbour stole their mail. We then sent them another statement with a 2 week grace period and again they did not return it. We tried to get in contact again but this time they never accepted our calls or door knocker. Since our loan was non-performing for I think over 3 or 5 years (I cant remember exactly) we immediately send out a notice of default because the loan was nearing the statute of limitations in TX which would only allow us to recuperate a certain amount that was owed instead of the full amount if it wasn't filed in time.We started the foreclosure process and found out that the person who owned the property had passed away. The property went into probate but there wasn't anyone nominated in the will to inherit the property. So it took a bit of time and money to show that the property didn't have any other owner rights but the property then went into auction and sold $65,500. Since Texas has a short foreclosure period it allowed us to recover our money in a very short period of time and make a nice profit. A strange set of events in deed, not something that occurs often but it happens none the less. So that was our first encounter with a probate issue. I will try to post deals once a month. I hope you guys enjoyed the read.

Happy hunting.

Jordan 

@Josh Shapiro I think it all depends on your strategy. The market will affect someone who plans to buy Non-performing notes in attempts to try get it re-performing as opposed to the investor who purchases performing notes for passive income. Depending on your goals you can then have a concise answer as to what would happen to your portfolio of notes during a downturn In the market.

@Antwan Steward my approach to mentorship was resolved by asking myself these following questions and then coming to the conclusion on my own for myself. Here are the following questions I asked. 1) How do I rate myself today with the knowledge I currently have as a real estate investor. A) Beginner B) Novice C) intermediate D) expert 2) Which niche of real estate investing would I like most to become an expert in? (If you don’t know the niches, do research on different ways to invest and pick one which best suites you. 3) Are there books and articles I can read for free or at a small cost? Read as many books as you can get focused on the niche you chose.Read as many articles and search the net for free content until you pretty much max out your learning curve on free material. 4) Who are the 10 biggest influencers in the specific niche of real estate you chose? When you have compiled them..listen to/read as much of each of their content as possible. 5) Which one runs their business and have the success level you want to achieve? 6) Did I or would I pay to go to college? If YES why wouldn”t I pay to get an educatIon In the busIness I want to pursue? 7) How much does the course cost? If It cost 5000$ and In that year I closed 1 deal that earned me 5000$ or 10000$ would It have been worth It? 8) If I could take the course and spend the money, how much TIME would it save me in reaching my goals? I hope this helps!

@Shay Rosner The best way to learn is to get educated in the industry. The above strategy you mention about helping borrowers get back on track is definitely the most ideal scenario IMO but you have to be aware of the fact that a good percentage of the time it doesn't play out that way. On the bright side even if it the note doesn't work out the way you planned there are multiple other strategies you can implement incase things take a left turn. There are a few good books although not many pertaining to this niche of real estate investing. You can start with Fuquan Bilal's Book "Turning Distress into Success" Also Martin Saenz "Note investing Made easier". Scott Carson has lots of podcasts on itunes with tons of great content. Hope this helps! 

@Tre' Carpenter A non-performing note is when a borrower on a property fails to make their mortgage payments usually for more than 3 months. When this happens their mortgage loan with the bank the becomes "delinquent" or Non-performing. Note investors are able to buy these promissory notes from banks, hedge funds or other investors at discounted prices because banks want to get these bad loans of their books and are willing to sell at a reduced price.I.E The promissory note for a mortgage is 100k and the note investor would be able to purchase it for say 50k. Now that the investor purchased the mortgage note from the bank HE then becomes the "BANK" and is allowed to try recuperate the 100k owed from the borrower. No toilets to deal with, no tenants, no leaky roofs. It is truly a great investment avenue in real estate. Lets connect and we can chat more! 

@Kat Varani Start by going to see a real estate attorney and get a contract/lending terms in place. Once you finish this part you will have a better sense of what you are looking for in terms of ROI’s, protecting your capital and length of deals. Once armed with this knowledge you can set out to meet local investors by going to Local REIA, meet up groups and attend real estate conferences. There’s not shortage of people needing money to fund their deals. Good luck

@Travis Webber join your local meet ups or REIA there you will find many investors to Network with.

@Gregory J Guiltner I have been investing in Non-Performing notes with my partner for the passed two years now and I have heard that same confusion from other investors about the Self directed IRA being complicated to invest with. I have personally done partnership deals with other investors using their self directed IRA and they now know the power of this gift from the government. Like what was mentioned above, rentals/mortgage notes are a great way to earns a tax free passive income to grow your IRA. Let’s connect and I can send you info on self directed IRA companies I work with that can help answer some of your questions.