All Forum Posts by: Patrick Desjardins

 That price is the difference between networking with experienced note buyers vs eager newbies (who usually never end up doing anything).

I'm not sure if I will go yet but I'll check it out when they announce speakers etc.

You're correct that it has a much higher risk of you losing money, but not automatically. If there's no equity they can file a chapter 13 and try to strip you, but not everyone does it. You can also sit on it until equity comes back (being aware of statute of limitation). They can try a short sale, they can be qualified for HHF, they may have been waiting for someone to call them after loan was sold 12 times.. There are a LOT of different reasons why people stop paying.

On one of my notes, the couple divorced and the husband was supposed to pay the 2nd while the wife paid the 1st. He stopped paying for XYZ reason and she claims she didn't know about it. She threatened to bring him to court and now they've been paying every month for 2 years like clockwork.

Your best bet is to figure out what happened to them and what they want to do. Don't start the conversation thinking you're going to get wiped, that's a terrible mindset.

 Small sample size as I was just trying them out. Borrower called them right away, then LH proceeded to call a wrong number for 30 days instead of simply calling the number they were called from. I had to ask them why they weren't calling her back at the same number.

Emailed and called LH repeatedly to send a demand letter, then 3 weeks later hounded them about starting foreclosure right after demand letter expires.. Oops, they forgot to send it.

TN foreclosure.. Quick right? It took their attorney FIVE months after FC to get us the deed. Every week there was a new excuse why it wasn't completed. Of course it's not entirely LH's fault but what was unacceptable was that once again I had to micromanage them and call/email non-stop. They would inquire with the attorney's office, not get a response for a week.. I'd have to push them to call back   and get an answer, etc. This went on for months.

Every single day came a new low. By that time I had moved stuff back to FCI and Madison and thanked baby J that I didn't transfer much to them, and it was my own money and not investors' money. How do you justify an uncontested TN foreclosure taking a year??? Autodialing wrong number for a month without trying to find the right number?

As usual, this is just my personal experience and someone else may have a completely different experience.

 Agreed with Chris, move it now and start the foreclosure.

Move it to FCI or Madison though. Land Home is one of the most incompetent company I have ever had the displeasure of working with.

It really depends on what you're looking to do. Are you an accredited investor? Looking to buy performing, non performing?

Are you looking to do this full time eventually or just want to be passive?

Do you have 25k to deploy or a million?

Basically we can't help you until you've define your end goal better and what resources you have.

Start by calculating the price of the note based on a 12% return for a quality note and 15-18% for a less-than-perfect note.

Sounds like an amazing conference with high level speakers. Wish I could go. At least I have a mole inside to report everything worthwhile :)

 No, there is no comprehensive book on note investing. If you go to amazon and type note investing, you will find 3-4 of them but they are mostly introductions. They aren't bad or anything but it's not a college level textbook, it's more of a casual read giving you the basics.

There is a lot of misinformation about Georgia's licensing. I wouldn't trust anyone here to provide a definite answer good enough for you to safely buy loans in your fund.

Basically what I've always been told is that you were safe if you bought notes as an investor, but not as a business. The threshold is 4 loans per year. The legal challenge is that it's easy to build a case claiming that a company buying an NPN (which needs to be worked out) is doing it as a business, as it's totally different from passively buying a performing note in your IRA or seller-financing your home. This distinction is very relevant in states that want active note buyers to be licensed as debt collectors.

If you plan on buying them for your fund, I would definitively sign up with one of the companies that monitors licensing requirements and help you stay compliant. They can also help you with the licensing requirements based on your entity structure (ie do you need RCM management company license, or Fund1 to be licensed? etc)

Just my 2 cents. I'd be very cautious on this one.

No, it's not realistic. While there are some mortgages you can buy for that price, they are either very risky and/or you won't have the reserves to pay for legal fees, servicing, and other expenses. Keep saving.