All Forum Posts by: Kareena Heath

@Tracy Z. Rewey

Thank you for posting about the 20% improved chance in the borrower re-performing on their payments simply by being on social media.  I believe that social media can help us with our business in many ways.  Here is another way I hadn’t thought about.

@lourdes Caballero

I am happy my explanation helped you.  Of course there is more to the story.  Let me know if you want to learn more.  I can suggest some books to read on the subjec.t

People use owner financing and seller financing interchangeably.  Owner financing can be where the investor approaches the owner of the home with 100% equity and asked them to carry a note.  The terms of the note is up to the seller and buyer to agree.  I have heard of sellers agreeing to 10 years with no interest.  You simply divide the amount owed by 120 to get the monthly payment.  I have also heard of owner financing to mean the investor buys the house at a discount and then sells it to an owner occcupant for the full price of the homes in the area.  Typically, the investor will ask for 10% to 12% down and around 9.5% interest.  The length of the term is typically under 20 years, again, the terms of the loan is whatever the potential owner occupant and the investor can agree upon.

Seller financing is also used when the homeowner sells their home to an investor or an investor sells the home to an owner occupant.  

As a note investor I like to say I manufacture notes, I sell for terms, or i create notes.  this makes it clear what I am doing.

@Wesley Wells

Do you mean that @Nicholas Candaffio could invest in partials buy buying the performing note and selling off some of the payments at the front of the note?  Or do you mean he could buy payments from someone who has performing notes?

I am new to non-performing notes.  What I have heard is that the bank considers the note to be sub-performing first up to 6 months.  I may be wrong but I think that is what I remember hearing.  It could be 90 days.  I belieave it becomes a non-performing at 6 months behind.  In terms of bidding on the note, you will get a much better discount if the borrower is behind 12 months or more.  My understanding also is that when you approach a bank to buy a note, you should not contact the borrower until you have closed on the deal.  

This is not the case with an REO where the bank has foreclosed already or in the case of a short sale where the borrower owes more than the property is worth. In the case of a short sale, I believe the borrower has to approach the bank with your offer and the time frame could be 6 months before the bank will answer if they accept your offer. If it is an REO where the bank has foreclosed already, you will need to got through the assigned realtor who is working with the bank on REO properties.

I am new to NPN investing also. I have been studying the process since Sept 2017. I work with a partner and we are looking forward to closing our first note by April 2018. there are many moving parts with NPNs, so make sure you know what you are doing, or partner with someone who knows the process.

I am happy you posted this.  It will be a good reminder to check out the authenticity of sellers.

Great that you sold the note for face value!  Good that you found a different title company congrats!

@Joe Nagle I agree with @Chris Seveney.  Scott Carson’s training is great.  I have completed his note Blueprint class which is a self paced training with videos.  I was a participant in Note C.A.M.P. 4.0 Oct 2018. I was a participant in his three day virutual note buying workshop in Dec 2017.  They all work together to maximize the understanding level.  

Some landlords figure their income based on 10 months a year rather than 12 months a year.  This helps in deferring the impact from vacancies.  Some landlords have $30K in reserves in the event there is a need to rehab or if the tenants damage the property.