All Forum Posts by: Bill McCafferty

@Scott Kimberly Put your 10,000 hours in. Build it from the ground up with processes and systems. Treat it like business and not a hobby. If you want it bad enough, don't listen to the non sayers. Laser Focused Daily Activity. Save, save and save your money. Use that capital to build the foundation of the business. The back office is so important in this business. Network and go to note conferences. Education is key, but so is taking action. It's a learn by doing business. Find a Mentor. Find others that are truly making money in this business. Buy a small performing note. Leverage that note with a collateral assignment, than buy a non performing note. Get that non performing note performing, leverage that with another collateral assignment. Rinse and repeat to build a track record. Eventually turn those collateral assignments into partial note purchases. Once the track record is there, people will want to do deals with you. Slow and steady wins the race every time. I've seen people come and go in this business, thinking they where going to get rich over night. The money is there, believe me. Another key component is to add value to others, with a service. I offer an Asset Management Service and Consultant Work, to other investors. This allows another source of income, while I build my own portfolio. Plus it gives me tons of experience and allows me to build my network. Multiple streams of income. This is just some quick advice, I could spend all day on it. Know your Why. I refuse to fail, my family depends on me. Best of luck.

I'm not positive on OH and how the appraisal comes into play. I know OK (similar to OH, based on an appraisal number) & MD (you pay a transfer tax when your Deed is recorded) are a little different than most states. But majority of the states, it goes like this; When taking a house to Sheriff Sale as the 2nd Mortgage Lender, you bid based on what you're owed on the 2nd Mortgage, subject to the 1st Mortgage. You have the right to bid $1, all the way up to your max Payoff number. Basically any number in between a $1 up to the max Payoff. I usually place a one time bid. When it goes to sale investors bid on your bid number, subject to the 1st Mortgage. If you bid $20k, subject to the 1st Mortgage and a 3rd party investor bids $21k. You will receive the $21k. The 3rd party investor receives the property subject to the 1st Mortgage. Remember you're the Lender taking it to sale, not an investor bidding at the sale. My numbers are, I went to Sheriff Sale 83 times from the 2nd Mortgage position. I've been bought out at sale by 3rd party investors 11 times. Of the remaining 72 that went through sale, 46 Borrowers resolved the situation, post sale during the eviction period with me. Either through a Payment Plan or a lump sum payoff to buy the Deed back from me. I never reinstated a 1st Mortgage or paid anything more than my legal cost to go through sale and for the eviction. 3 of the properties I actually rented out until the 1st Mortgage foreclosed on me (I chose not to pay the 1st Mortgage, this works well in Judicial states. Not the best situation, but it's what I did). So many things can happen at sale, as much as I want to resolve it with the Borrower, my main goal is get it to sale and let the Borrower make a decision. They're either going to pay you, file Bankruptcy (which with those number, you will get paid) or let you go through sale. Even if you go through sale, a lot still needs to happen before you actually get possesion of the house. As you see with my numbers, with going through sale, still plenty of money to be made. Hope this helps.

@Mike G. I was in the right place at the right time back in 2007 - 2008. I was attending a local REIA group. I met a group of well seasoned investors, that started investing in Institutional Residential Non Performing 2nd Mortgages. One night they had their mentor speak about it, it was that night, that I knew this is what I was looking for. It allowed me to leave my 9 to 5 in 2011 (after 15 yrs) and my wife in 2015 (after 16 yrs). The business has been life changing and very good to my family. I have a few mentors, but the most influential ones have been a company named Partners for Payment Relief. One of the partners is BP member Dave Vanhorn. @Dave Vanhorn

Institutional Residential Non Performing and Reperforming 2nd Mortgages. I buy nationwide. My goal is to build cashflow and accumulate Assets. I can do this in my LLCs and my SDIRAs. I can buy at discounts and levarage it, to buy more. I can do this from my desk in my house. It supports my family and I very comfortably. I don't deal with properties, rehabs or tenants. It allows me to diversify in one Asset class. The end result in real estate in my opinion is to own the Paper (Mortgage Note). Best of luck. There's a lot out there. Real Estate done correctly, can be very powerful and lucrative. Treat it like a business and you will be rewarded. Nothing is easy. Take action, educate and find a real mentor.

I would be happy to help. I can tell you anything you need to know about investing in institutional residential 2nds. The author is one of my mentors. I've managed well over 600 Non Performing 2nds and have been paid off of 300 of them. I have an Asset Management Company, that manages Non Performing 2nds for investors. I personally buy both Non Performing and Performing 2nds in my own company and IRAs. I do it full time. Send me a message, I would be happy to connect.

One of my favorite states. Fast and Cheap.

I always want a loan mod or discounted payoff, but it's never about what I want. I press with legal to force the borrower to make a decision on 3 exits, once they choose the exit, It's up to me to handle exit and put us both in the best position. 1. Pay me, either though a loan mod or discounted payoff. 2. File BK, deal with that. 3. Force me to get the keys or sale the, could be a regular sale or s short sale.

My last 5 Short Sales from the 2nd Mortgage position where the 1st Mortgage took a loss, the higher the FMV, the better. The 1st Mortgage has to agree to the Short Sale. 1. $6k from the 1st Mortgage & $24k from my paydown. $30k. Sold for $525k. 2. $10k from the 1st Mortgage & $10k from my paydown. $20k. Sold for $290k. 3. $6k from the 1st Mortgage & $0k from my paydown. $6k. Sold for $77k. 4. $10k from the 1st Mortgage & $7k from my paydown. $17k. Sold for $300k. 5. $12k from the 1st Mortgage & $3k from my paydown. $15k. Sold for $112k. The goal is to get out whole. We did on 4 of the 5. 3 of the 5 we made money. Lost money on the $6k short sale.

You need to be addressed. You're on title and need to sign off on the transaction. It will most likely be a short sale. If the 1st Mortgage approves the transaction and accepts less than what they are owed, they usually offer the 2nd Mortgage between $6k to $10k. You can play hard ball and try to get more. I usually ask for my 2nd mortgage to he paid down by a certain amount, before I sign off on the amount I'm offered through the short sale. At this point, the goal is to deal with the person, who is handling the transaction and try to get out whole.

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