All Forum Posts by: Linda Hastings

No offense meant, but if you have to ask if it's a good investment, perhaps you need to spend some more time educating yourself before trying to broker notes.

Have you checked the mobile home investing forum? Seems like a question that might already be answered there. 

https://www.biggerpockets.com/forums/30-mobile-hom...

Legally, yes. Although as @Patrick Desjardins mentioned, with FDCPA and CFPB, you need to be very careful that you comply with laws regarding debt collection practices (reading them the "mini miranda", how often you call, what time of day you call, etc), and state licensing that may be required. 

You may find this thread interesting. I'm not sure anyone is really sure how it will all play out yet, but could mean a bit of relief for small time note investors:

https://www.biggerpockets.com/forums/70/topics/454779-potentially-big-news-for-note-investors

@Nicholas Baughman Not sure why the @ mention and connecting with me through my profile didn't work. I sent you a PM. 

@Nicholas Baughman I've taken the Note Mogul course and found it to be a good, reasonably priced course to introduce you to note investing. They do have a bit of a slant toward seconds (I think that is what some of them invest in), but there is also lots of good information on firsts as well. In particular, I think they do a good job of covering some of the regulatory information related to notes (CFPB, RESPA, TILA, FDCPA, how all of that affects borrower outreach, etc). This is one area that seems to be lacking in some of the note training/books I've seen. If you have more questions, feel free to PM me.

@David Faulkner I don't have the answers to your questions, but I can say that, in this case, many of the homes that were flooded were not in flood zones, so there likely wasn't flood insurance. 

Welcome to BP, Seraj! Be sure to keep an eye on the notes and tax liens forum (you can click the "follow" button to be notified anytime a new thread is started):

https://www.biggerpockets.com/forums/70-tax-liens-...

You might also find the following threads helpful for education on notes:

https://www.biggerpockets.com/forums/70/topics/411...

https://www.biggerpockets.com/forums/70/topics/432...

 (Net profit / Total investment) * 100. Don't forget to deduct the acquisition cost when calculating Net Profit. 

Actually, I think you can use a note as collateral, although you may need to go to a commercial lender. It's called hypothecation. I remember @Dave Van Horn mentioning this in some blog posts or podcasts. @Jay Hinrichs has also done it. 

See this related thread:

https://www.biggerpockets.com/forums/70/topics/478...

If the note is performing and you plan on keeping it for cash flow, then yield is the better metric to use since it takes time into account and shows your annual return. ROI comes into play more in the case of a non-performing note that you foreclose on and then sell the property, or if you get the note re-performing and then sell the note.

One way I've seen ROI used in the "performing note held for cashflow" situation is to take the monthly payment multiplied by 12 and then divide by your purchase price. In your example, (536.82*12)/69500 = 9.27%. I'm not really sure what value this provides though.