All Forum Posts by: Linda Hastings

50 cents on the dollar of the UPB may not be a sweet deal depending on the fair market value (ex. UPB is $100k, but FMV is only $50k). You want the discount to be on whichever is lower, the UPB or the FMV.

@Mindy Jensen

Unpaid Principal Balance

Thanks for the  historical perspective @Patrick Desjardins. Maybe with the recent chatter in the news about Dodd Frank and CFPB we'll get lucky and it won't be so cumbersome to do outreach anymore. 

Regarding licensing and securities, this thread may be of interest:

https://www.biggerpockets.com/forums/70/topics/421999-do-i-need-a-brokers-license-to-sell-fractions

@Dan Golden I haven't done a JV yet, but am in the process of evaluating one. I'll let know know how it goes.

You may also need to check your state laws/regulations to see if any specific language or notarization is required. For example, in Texas, certain language must be used depending on whether it is conditional or unconditional waiver and whether it is for an interim payment or final payment. In Texas, it also must be notarized.

I'm new to notes, too, so to avoid "the blind leading the blind," I'll leave #1 & 3 to more experienced note investors. 

Regarding #2, you are correct that there are all sorts of JV agreements/structures that you could come up with, but one that I've seen is where the experienced investor finds, vets, and manages the deal and you put up the money for acquisition and expenses. Any profit is split 50/50. You can choose to be more involved in the process and learn along the way or just be a passive money partner.

@Pari Thiagasundaram Are you asking why pay extra to have a third party do it instead of your servicer? If that is the question, then perhaps it's a matter of effectiveness of even cost. My understanding is that some servicers have different levels of service (i.e. different pricing depending on what you have them do; just doing the billing, tracking the balance, etc vs actually reaching out to borrowers). In that case, perhaps there are third parties that can do the borrower outreach at a better price point or are more effective in actually contacting the borrower if that's all they are doing. I suppose you could even have a VA do the outreach if they were properly trained and knew all the regulations to follow.

Texas may not have state income tax, but watch out for our property taxes! Wish they didn't follow the "everything's bigger in Texas" adage. 

Thanks, @Chris Seveney PM coming your way.