All Forum Posts by: Nathan Turner

Please see a post from Jeff Watson regarding how you can get involved in helping out our industry! Read the article and then get involved. Great changes may be on the horizon for the note business but we need your help. I've joined the coalition and invite you to do the same.

http://watsoninvested.com/baseball-apple-pie-selle...

By Jeff Watson on Nov 15, 2016 in Real Estate Investing | 0 comments

It’s been a week now since Americans went to the poll, and President-elect Donald Trump will be sworn in January 2017. Multiple news reports are stating he has declared that he will overturn large portions, if not all, of Dodd-Frank. I personally have seen a number of investors boasting about this on social media.

Beginning Sunday night and continuing into Monday morning, I spent several hours carefully reviewing the complex language in the Financial Choice Act, which is a likely favorite to be passed in Congress and signed into law early in January 2017 in order to drastically reform Dodd-Frank. The problem with that bill is that it does absolutely nothing for small real estate investors who wish to sell their properties via owner financing.

Even though the election has dramatically changed the landscape in Washington, D.C., it is more important than ever before that we as investors, agents and entrepreneurs become engaged regarding the Seller Finance Coalition. You can CLICK HERE to find out how to do that. If we do not have a seat at the table at times of great change so that our voices can be heard, we will be ignored or taken advantage of when changes occur.

In order to be able to get us to where we want to be with seller financing of approximately 24 deals per year (based upon the terms negotiated with the National Association of Realtors), we not only need major changes to Dodd-Frank, but we also need changes to the Safe Act and to certain Truth in Lending Act (TILA) guidelines.

H.R. 5301 does exactly that. It is important that you join the Seller Finance Coalition, and it’s important that you contact your members of Congress and ask them to co-sponsor and support H.R. 5301. National REIA has made it easy to contact your member of Congress on this issue. In my next email I will share that link to National REIA’s powerful resource.

Today, join the Seller Finance Coalition. Next, contact your member of Congress.

We must keep this effort going so we don’t lose momentum just as we’re getting so close to seeing the relief our industry desperately needs become a reality. Please CLICK HERE to join today.

Currently the rules are very limiting when selling with terms. However, have a look at an article from Jeff Watson who is part of a coalition to help broaden the number of deals you can do. http://watsoninvested.com/baseball-apple-pie-seller-finance/

When starting out I paid for several programs and classes from three or four teachers. What I learned was very valuable and ranged from the concepts and differences between different kinds of notes to getting a basic crash course on a financial calculator. All of it added to the knowledge base and at the same time I was buying notes and learning by experience. 

One of the other greatest advantages of this training was the connections and networking it provided. People I met years ago when starting out have become allies and even business partners. 

@Sandy Uhlmann I will often get a copy of the application when buying a contract for deed but almost never when buying a 1st lien mortgage. As @Paul Birkett says though its nice when you do so that you can put a story together about your borrower. It can help in negotiations when you have a bit more information of their life when the loan was originated vs today. 

For a credit check all you really need is the SSN and full name though so a full application form is not really necessary. 

@Demjan Van Der Kach @Sandy Uhlmann Sandy is right, there are lots of funds out there and most of them are legit. PPR is a great company and my experience with Dave Van Horne is that he's an honest and trustworthy guy. 

Every fund is set up slightly differently, I know of another fund that recently started up (not mine) and I am very impressed by their policies on payout and how they handle the funds. Things like they don't take any extra fees for the privilege of being in the fund! PM me if you want to know more.

@Kendra Lacarte pm me and we'll talk!

@Brian Byrd, you have the right idea of just working in a spread for yourself. You can get more advanced and look at partial purchases but hold off until you have some more experience... 

@Patrik S. I live in Canada and buy notes exclusively in the US mainly because there is no note business in Canada. If you are looking at properties, one area is definitely easier but if you are buying the note there is more flexibility.

Good luck!

@Paul Birkett Well said Paul. 

@Brian Byrd if you can't buy directly for the company you work for you may know of others that you could? As @Bob E. said, be sure you are not triggering a non compete clause you have signed but have a look around and start some conversations. Hint: @Paul Birkett is a great guy and has deals available :)

@Sarah Junker Good for you for getting started. Sometimes the "old folks" are too set in their ways to want to learn or think that anything is possible.

By way of advice, I would say to learn enough about notes so that you can confidently present the idea and concept to others in order to broker some deals to them. As @Jay Raught said the notes that you will encounter will be either from local banks and I would add hedge funds. Networking is the best tool you have in finding the notes in the first place so get out there and never mind the naysayers!