All Forum Posts by: Daria B.

 I agree, FCI $ are far and above higher than I generally look for, but I use it currently to "learn" the business. I can go through and choose notes and do some research to see "what" I would offer. Of course this is still without knowing what is in the collateral file and not looking too deep into if it's FC-er-ing. I actually found one in my own city where the seller wants, my opinion, too much and has commented that borrowers have applied for Hardest Hit Funds, which is no guarantee so why would anyone sell if that was going to happen. I recently learned about HHF so I can see that if you already have a note or are looking to buy one and know where in the process they (borrower) are then it "might" be a good thing for the note holder.

won't you have to pay back your HELOC on a monthly basis? How are you going to manage the cost of buying the Note, such as, foreclosure costs (if any) or loss mitigation, boarding the note, serviced fees, etc. I've had some NPN that took a couple months to workout so can't count on monthly payments until you find out what's going on with the borrower.

What would the person be doing? There are people here on BP that are looking for VA work, in addition, already vested in or learning of RE. Upwork is also another choice as already mentioned. I have no experience with them either way.

  Hey James 

I've been JV with someone and since they have an LLC we have been using their company name for which our notes are purchased under . Considering though, like yourself, who are buying by yourself are you doing this in your name or are you doing it in the name of an LLC?

@James Kramer

As you said, there are many other factors involved with pricing. Are these performing or non-performing, 1st, 2nds, etc.

As a start, I don't look at either but both - % of UPB and BPO. There are investors that just look at value and others that just look at UPB. I take a % of both and look at the lower end - in addition - to several other factors regarding the note (ie judicial, non-judicial, occupied vs vacant, interest rate, payments in last yr, etc, the list can go on depending on the investor).

The SDIRA companies don't dictate the management of the Mortgage Note. If a loan modification, foreclosure, what ever that case is, would be determined by the note holder. As I mentioned, we have a NPN that we were considering doing a loan mod for and didn't do because the borrower started paying.

@Kellis Landrum

I found the JV partner that I am with now via my local REIA. There are 2 in my area, one focuses on Mortgage Notes and the other "buy and hold/fix and flip". I opt'd out of the latter and stayed with the former. I was going in that direction anyway and wanted to have more focus on Notes.

How about finding someone in your local or near area that are focusing on Notes?

The 10K amount will be a little tough to start with but that's not to say I've not read about others who actually have done it. 

The "accredited" things really hurts - it may be that the required $ ceiling amount can be verified but if the income is not there then essentially, the person is "not" accredited. This is tough because you could actually have the $ to invest but all the other parameters are not there for the accreditation.

I've reached out to other experienced people to talk about JVing and have found opposite ends of the spectrum. I've been faced with - very accommodating to understanding that everyone has to start somewhere (as did they) and have been very good conversationalist and at least willing to explore a JV, to people that really want someone who is already at pace with them - obviously that is not a good fit now but perhaps later. I don't let that stop me.

I feel I am at the same juncture as you only in that I have one JV and am looking for others not only to gain experience but more so investing styles and goals that I want to achieve.

I didn't just "jump" in to a JV as all are not created equal - you will want to be cautious of who you do business with (agreed on your comment "along side"). I learned about the persons investing styles and if it would be a good fit and that took time, which included my learning "notes" along the way in addition to the person's personality and investing style. I also talked to other investors who also JV'd with the individual.

Hopefully I've given you something to go on though I don't feel as though I helped give you a specific answer.

Good Luck....

 I invest in Notes and I'm not aware that there can't be a loan mod if that's what the partners wish to do even if your funds are from the SDIRA. 

I also invest from my SDIRA and am still new but have purchased 5 notes so far. We were going to do a loan mod for one of the NPN but the borrower actually stepped up after we purchased and began paying her debt - so no loan mod.

Primary JV partner has an LLC and any other investors essentially are using their SDIRA where the paperwork reads "SDIRA Company Name FBO (for the benefit of) Owner Name Acct#". This is how I sign all my docs. If you use cash to fund the deal, some will just use their name and others may have an entity that the JV uses.

Great! Like to know how this works out for you.

 Hi Adrienne,

I have been trying to get onto Upwork as a freelancer. Since you use it for your business, do you find there are sufficient people to search for given what you are looking to have done? Have you had a need to speak with an actual tech support person? I registered and am trying to work through the nuances of the site. Having a bit of difficulty at best. Thanks