All Forum Posts by: Robert Harpster

@Chris Seveney

Thank-you Chris! 

By the way, watched your YouTube video on the DataTree platform. Very helpful!

@Cody Cox  @Fred Moskowitz

Thank-you for your replies. Being completely new to notes, does the servicer of the note report payment history on the borrower? So in other words is their credit score improving by making regular on-time payments increasing the likelihood that they will be able to qualify for a lower rate?

Curious about realistic expectations for outcome of a performing note. Example - A note modified a year ago to lower payment and get borrower making regular payments again. New 15 year amortization at 10% and approx 165 payments remaining. LTV of 55%. P&I payment approx $425 per month.

In your experience, what is most likely scenario of this note? Borrower pays to end of note? Home is sold in 4-5 years and note paid-off? Borrower refinances to a lower rate after 4-5 years and pays-off? Borrower stops paying or falls behind again? Note holder sells the note after 1-2 years?

Just looking for thoughts based on past experiences.

Curious about realistic expectations for outcome of a performing note. Example - A note modified a year ago to lower payment and get borrower making regular payments again. New 15 year amortization at 10% and approx 165 payments remaining. LTV of 55%. P&I payment approx $425 per month.

In your experience, what is most likely scenario of this note? Borrower pays to end of note? Home is sold in 4-5 years and note paid-off? Borrower refinances to a lower rate after 4-5 years and pays-off? Borrower stops paying or falls behind again?  Note holder sells the note after 1-2 years? 

Just looking for thoughts based on past experiences.

@Logan Hassinger 

That makes sense. My thought process was being new to notes, I may not want to take on a non-performer early on. Having a performing note for a few years and then exiting the note gives me more comfort. So in my analysis, I caught myself looking at notes and thinking who is the borrower? Will they continue to pay? If they have had a BK in their past, are they more or less likely to have another? Has their dept to income changes significantly over the past year or two? So I find myself asking myself, what is different about this note than this other note. And credit of the borrower entered into my thinking. 

Thank-you for your comments!

@Chris Seveney

Can you elaborate on why you don't check credit on 1st position? I know this is from a few years ago but am curious if this is still the case? Thanks!

Looking for an attorney familiar with real estate notes who can assist in review and purchase process.  

Thank-you.

 Brett,

Does a potential buyer have to accept the sales price of a note before reviewing the payment history of a note? I requested the payment history on a note since none was provided. Paperstac created a transaction with a To Do list and the next step is buyer accepting the sales price. I would need to know more about the note before I can accept the price. Please clarify.

Robert Harpster

I am a complete newbie looking to invest in notes just prior to Covid-19 and now I don't feel I will be able to participate based on my complete lack of experience and now the uncertain and challenging times. I have asked several questions over on the Tax Liens and Note Investing board and many individuals there have given me really good advise and comments. I will continue to read and learn and hopefully secure my first note in the near future. 

I agree that commercial owners are very worried about tenants paying rent. Very good points made above.