All Forum Posts by: Nathan Turner

@Steve Hodgdon Good work Steve. I'm also a learn by doing kind of a guy and my experience has been that the first one is always the hardest but it gets much better after that. DD on the front end is a lifesaver and so important... lesson learned! BPO and O&E have become two of my favorite abbreviations in this business. Good luck on your future purchases!

@Michael Zagorsky Another great book is Turning Distress into Success by Fuquan Bilal. 

@Morgan Cook Found one! I've been in the note business since 2008 and in the last year I've had the most fun I've had so far in this business! PM me if you have any specific questions.

@Matt Skog Yes you can get delinquent notes in Minnesota although to be honest I don't see many on any tapes I get. Checking with local attorneys, banks, and servicing companies are a good place to start.

@Daniel Torres If you haven't already, check out Donna Bauer. She has the highest rate of response from her direct mailing campaigns that I know of. She's based out of Cincinnati and is also known as the Original Note Buyer. 

@Bob E. Not saying they're not a good thing, I like to sell partials too. It's just a little more advanced for a newbie.

@Cody Krecicki My other advice would be not to limit yourself just to one state or city. If you have inventory coming from one bank that could work but otherwise don't be afraid to keep your eyes open to the whole country. I live in Canada and currently have notes 35 notes spread over 15 states. 

I also agree with @Jay Raught, you have to be willing to roll with the note. It is not uncommon to buy a note with a specific exit strategy only to switch gears completely. I've had it more than once where I intended to take the property back and found out that people did indeed live there and have turned into great re-performers.

@Bob E. I've been around since 2010 buying non performing and I have yet to see it slow down. If anything prices have crept up but I'm still getting fantastic returns on everything I buy. 

@Franky Juwana they can be good, the short answer is it depends.

What are you looking for? Do you want long term payments coming in or are you looking for quicker turn around? Partials can be very good when you are dealing with seller financed notes but a hedge fund will only you the whole note. You do need to be pretty good with either a financial calculator or some kind of software to help you determine all the numbers in that kind of transaction so it's not usually for beginners.

@Mike H. This one is for sure a grand slam but even singles are double digit returns. 

In this case the property value was determined to be 27k by a local realtor so I took a 700 down payment and financed the rest at a 9% interest rate (highest I can charge in IL). The borrower has no idea what I paid for the note since that is not public record and I'm not about to share that info with them and this was a new note so there were no terms to restructure. 

I have had other loans where I reduced the time to pay and raised both the interest rate and monthly payment and they were happy to agree since to them the most important thing was to pay off the house quickly. It's always a negotiation with the borrower so it can vary quite a bit. 

As to where I buy notes from, I buy from hedge funds and note servicers. I'm an open book when it comes to note investing except the names of my suppliers since that took me years of networking and working in the business to earn a reputation as someone who closes deals.