All Forum Posts by: Natasha Hunter

There is a lot of opportunities if you are consistent in marketing for notes. I feel like there will always be a lot of opportunity in this space especially if the real estate market isn't performing as well. You will find that a lot of people love the appeal of notes but don't take action and/or use their resources such as bigger pockets. Like Chris said most people are attracted to the idea of getting rich quick without a lot of work but especially when you're starting out there is a lot to learn and a lot to do. It's also not quick as opposed to rentals and or flips but in my personal opinion its a lot more lucrative than some of the other investment vehicles.

Check out Quest IRA. They put a lot of information out on how to use a Self-Directed IRA for alternative investments. As far as investing with only $1000 it can be done but I would advise you to be very careful. As Rick mentioned wholesaling of traditional real estate or notes can be a great way to increase your IRA. Also finding someone who you can Joint Venture on a deal with who wouldn't mind a small investment is another way to grow your IRA. It could take some time but it can be done.

I would suggest purchasing 1 1st lien performing note to see how the process is done and further educating yourself. Seconds are an entirely different ballgame and you could cause yourself some hardship if you go in it blindly. With a performer, you will still see cash flow and you can start educating yourself during the process. There is a lot to learn in this space especially if you are planning on purchasing a note in a different state with different laws. Invest in some reading material like, Invest in Debt and Bulletproof Due Diligence. Start religiously watching videos from people who are active in the space and get on some of the social media sites where note buyers and sellers are prevalent. These people will be your lifeline throughout your first few notes. After you feel better informed about what you're doing in the performing note space, you should look at Non performers and seconds. 

You have some great responses here already but I will chime in. It's great that you're not putting all of your eggs into one basket. I think buying a performing note would give you extra cash flow at a great return. You wouldn't have to worry about the management of the asset because you own the debt, not the house. When the buyer decides to sell, you will reap in the remaining balance all at once which will possibly give you enough to get into another flip if that's what your investment vehicle is. Performing notes are truly passive as your servicer handles most of the work and you just collect the check. You also don't have to use all of your remaining funds to purchase a note. You can find notes that are cheaper than $50k and still give you great returns. This may allow you to diversify a little more while still exploring the note industry.

@Geoffrey Cornelsen if you are looking to learn some education about the note world there are a few people who put out some great content such as Scott Carson and Dan Zitovsky. Scott also puts on a virtual note buying for dummies course that is a 3-day intensive course done live online so you are able to ask questions and see what other people are asking as well. He also puts together a bi-annual note camp where some of the industry leaders come together to discuss the business as a whole. Dan has a course that encompasses how to create a business out of notes. Both are rock stars in the business and the ones I always turn to for my education. 

As previously mentioned before I would get the services of a skip tracer. I always call the electric company and the water company to let me know if servicers are on. To cover yourself, its probably always best to send a letter to the current occupant letting them know of your intentions. 

This is a great question and one that I have asked myself. Notes are one of those terms that google hasn't quite figured out yet. You will see there isn't a whole lot of information online. DS News and housing wire were mentioned earlier. These are great places to keep updated on the mortgage industry but you will find there is a ton of insider knowledge by attending conferences and summits. Papersource, Noteworthy, IMN and Quest put out summits a few times a year. Note Camp by Scott Carson's group is a great conference where note investors and leaders in the industry gather virtually twice a year and discuss the industry as a whole. Until then become a frequent flyer in the note investing groups on Facebook. You're already doing well on Bigger Pockets. This should be a resource you check daily for answers to questions that you might have. While there aren't many books on note investing, you should read what is available out there currently. I strongly suggest reading Bulletproof Title Due Diligence by Alex Goldovsky as its geared towards newbies in the note space. Check out Meetup.com for local investor groups that discuss note investing. As suggested you can also Joint Venture with a more experienced note investor to began learning the in's and out's of the business as well. 

Looking forward to seeing what kind of inventory will be coming our way.

I am interested in seeing what other replies you get to this. I would have a few questions first. Have the goodbye letters been sent out to the borrower from the previous servicer? I would recommend looking at a company like Polaris to start on the borrower outreach right away. Having a special servicer reach out instead of you takes the liability out of the situation. By sending your own Hello letter you could potentially run into some issues. You may want to contact Singer Law group about what you could to ensure you don't run into issues but more than likely they are going to tell you to wait for these goodbye/hello letters to be sent. 

I would have to second Tim's recommendation for Alex Goldovsky's book. Most books will teach you the basics but Alex's due diligence book introduces you to some really important aspects of the business like the paperwork you will need to file and which liens could wipe you out of 1st position. It has turned into my go-to recommendation for someone getting into note investing.