All Forum Posts by: Peter Halliday

I’m new to notes this year. I encourage you to buy a note.  Best way to learn. After purchasing the seller will send you the full file.  You can pay someone to keep it safe, but you can also get a safe and take care of it yourself in the beginning.  

You do have to file the assignments. There are vendors that can do this pretty inexpensively.  

You don’t have to have the servicer totally inked.  They can do anything until the get the file from the previous servicer.   The big surprise to me was they can’t do anything for 30 days. Also the boarding of the loans takes more time than I thought it would.  

I’m pretty new, so I’d weight some of the advise from some of the others more heavily.  If you are buying a performer, then I’d think the focus should primarily be on whether they are performing.

Some states make it easier to go after work non-owner occupied.

In Cook Cpunty be prepared to bid 0% for the interest or you won’t get it.   Most of the investors make their money from the interest, but on the ones they get the property.  

Let me preface this by saying that I’m relatively new to note investing and have single digit notes under my belt. I’ve come across an interest only note that has a balloon. My guy is that this kind of seller financed note to a residential buyer has a lot of risk.

It seems vital to ensure it was properly originated. I’d guess a note like this has a lot more grounds my guess of having a long stretched out foreclosure due to the sketchy nature of this. It’s one things for hard money lenders to do this but residential In guessing courts don’t love.

Interested in some people with experience thoughts on the practice as well as how to price on the risk.

Is this ownership of a property or note?   Either way an attorney that state would provide better legal answer than those on BP 

I don't have the experience you do, but I have another story to confirm your point. However, this one is on the other side of the spectrum. I had a non-performing CFD I purchased where the borrower died. I was preparing to send the 30 day demand letter to start the ball rolling. However, the attorney read through the contract and noticed language that required us only to notify them of the default and then if they don't reply the property is immediately mine. I read the note several times, but didn't catch the legal nuances of the language. Unlike Chris' mine was originated by a private lender.

@Chris Seveney Any recommendations

@Andy Mirza Do you handle Performing notes differently, or don't you do those?

@Andy Mirza. Thanks for the response.  That was my first thought.  When you say expenses, I assume you mean the closing and due diligence expenses.  Or do you mean even the ongoing like servicing etc. I assumed some of the ongoing expenses are more a cost of good sold, like the servicing fees. 

This is for either those accountants out there, or else experienced investors that have solved this.  From Note investing accounting.  A note I assume would be considered a Loan Receivable.  I know the direct cost of purchase would be included in it.  However, is the value considered what you paid for it, or the unpaid principal balance?  

I assume the bookkeeping for a non-performing loan is different.  But maybe not?