All Forum Posts by: Natasha Hunter

There are many great CRM's out there as others have mentioned. But beware, as a beginner, the more fancy the CRM the less you'll likely use it. Start out with only what you need and work from there. MailChimp is great for beginners. I personally like Podio as it can be minimal and expand to an advanced setting. Trello is a good free tool as well if you're looking for more of an organization type CRM (think reminders, notes and to do list). MailChimp is going to be a great tool to utilize if you plan on sending out mailings and email blasts even if you utilize another CRM.

There are many things to consider when evaluating a note. Are you looking a 1st lien or 2nd? Residential or commercial? Performing or non-performing? What is your exit strategy? Each of these has a different set of criteria you'll want to focus on. If you're a beginner the book Bulletproof Title Due Diligence by Alex Goldovsky is a great book to read as it discusses how to utilize title reports to do a thorough evaluation of a note or pool of notes. It gives a break down of different things you will see when investing in notes as well as how to identify if these are trigger areas. Scott Carson, Eddie Speed and Dave Van Horn offer some great free content on youtube and vimeo on how to determine if a note is good as well. 

Hi Kishore, 

I am a Realtor and also a note investor. Personally the only reason having a license has helped me is through NARRPR which is a Nar Resource for Realtors that allows you to view statistics about any home in the USA. This is helpful to me as it is more accurate than Zillow or Realtor. It allows me to pull comps, verify county information, see PID numbers and tax information. This is about the only PRO I would say to why I like having my license but in general it really doesn't have too much of a hand in my note business. 

I recommend Quest IRA out of Texas or Nuview out of Florida. These companies are well versed in using a self-directed for real estate investments. I personally have dealt a ton with Quest IRA for note purchases with my joint ventures and they understand the process an what is needed to get the deal accomplished. There isn't a lot of pushback or unnecessary documentation and hold time. Quest IRA does many events and webinars that may help you answer your questions on what you can and can't do with a Self Directed. That would be a great starting point.

@lakshmi chari This is a very broad question but a very good one. When analyzing a note you should look at many factors. Here are some of the things I look at:

I personally only purchase notes that have a population of 10k people or more or are located very close to a metro area. This is because it will be much harder to resell the note, find a contractor, rent or sale if the population isn't very big. 

If you're a new note investor its a good idea to chose just a handful of states and focus only on those until you have learned their laws and the process. I won't invest in GA, NY, NJ and parts of Illinois. These are for personal reasons.

I won't invest in notes that have tax or other super liens attached. If you're not aware what super liens consist of, consider getting the book, Bulletproof title due diligence by Alex Goldovsky as it addresses some of the pitfalls of these liens. 

Occupancy Status. This depends more on your exit strategy. I cater more to occupied because I like to modify or reinstate these loans which is much easier to do if the occupants are still in the house

Another thing to consider would be the statute of limitations. Many states have laws as to how long you can foreclose after the borrower becomes delinquent. Speak to an attorney about the states you're interested in. 

ROI is obviously a good one. There are tons of notes available but they don't all make sense. It's important to determine what you are looking for in your ROI numbers especially if you plan on Joint Venturing these out. Be sure to include some possible rehab if that is a part of your strategy.

There are many others and it will be interesting to see what other note investors look for when purchasing a note.

My strategy is similar to most as I try to get the borrower performing again. Bill said that he does this with force and I feel that is the smart move. It forces the buyer to choose their exit strategy right off the bat and doesn't allow them to keep you in limbo while they decide. I have purchased a CFD but understand that many people are shying away from them at this point so now I only purchase these in certain states. I personally don't dabble in Bankruptcy but I hear they can be very lucrative. I love Dan's model and hope to move that way in the future.

Since you are going to be house hacking youll want to get started. Depending on your relationship with your landlord, it may be smart to inform them of your plans and find out what happens if you need to extend for another month Also depending on hot your market is, the seller may not want a super long close. You are correct that you should allot 45 days for an FHA loan. If you're in a hot market anything longer than that may kill your deal so find out what options you have for breaking the lease.

If you are a newer note investor I would strongly suggest Madison Management out of New Jersey. They cater to the new investor & offer borrower outreach. Speak to Shante or John about what you are trying to do and they will steer you in the right direction.

Unfortunately, I didn't get to make the expo but I would like to add IL especially Cook County. You need a license in IL and although I know many investors who still venture out there if you are going to invest in Cook County be sure to know how they conduct business. From my understanding, it is very different. I also steer clear of GA, NJ and NY (for long foreclosure timeframes). If you're just getting started maybe try sticking with just a couple of states and learn their laws until you feel comfortable moving on to some other places.

@Nathan Patterson yes and I have done some investing in notes already. I will tell you that when I say it's a ton of information, I mean just that. Most often people have analysis paralysis and are just too scared to go forward because they are scared of what they don't know. I know this because I myself was like that for quite some time. But once I finally took the steps to do it was easier than I was making it out to be. I could always rely on Scott if I had questions and the various Facebook groups that his mastermind students are a part of. In this industry, you have so many people who are willing to help. Just ask for the guidance and you will be surprised!