All Forum Posts by: Kevin Moen

You bet. I know of a company that works with JV investors. Feel free to send me a message if you want me to connect you.

@Valentina Woodson You can also find note investors who are willing to joint venture on note investments. This is a good way to "earn while you learn" and get some hands on experience while leveraging a more experienced investors connections, knowledge and time. Can be a nice alternative to investing in a coaching program just to go out and do it on your own and need X investments just to make up the cost of coaching.

 Exactly, that is why many advanced investors buy notes (outright) at a discount vs trying to buy rentals. You can find non recourse lenders, but typically they will only lend about 50% of the purchase, and then you will pay taxes on the leveraged portion of the investment. Why do through all of that, and the headaches of owning a property in a retirement account, vs just buying the banks position and collecting mortgage payments? 

Did this loan go through a modification? Was it a lease option? I noticed the borrower has lived in the house since 2005, but is that when the loan was originated? I ask because some of the numbers aren't clear and if the loan was originated in 2005, that would make it a 32 year term, leading me to think it was a 2 year lease option, with loan origination in 2007, no? The $966.16 is P&I, or PITI?

@Roger Wagoner Are you referring to Notes? We invest in notes secured by properties in the mid west and southern united states. Great cash flow and lower entry point. We are typically able to find good deals for $40k - $60k range. If you are asking about rentals in Seattle, I find once you go over about $500k there is little to no cash flow. I use leverage on my rentals, and look for multi's and SFR with ADUs, that is the only way to invest for cash flow in the city.

FCI and National Asset Mortgage are just two 3rd party loan servicers (of many) that can service a loan you purchase, or originate. If you board a performing loan with them you should only need to pay about $20/mo and not need to worry about CFPB regulations, the books, etc. We use them in our business. 

You can check out Noteschool, they run a good program but you would pay a pretty penny to join. What budget are you working with? 

You can also potentially find a note investor who would enter a joint venture with you and allow you to "earn while you learn" vs just investing a bunch of money in a program where you have to work really hard to earn it back. I invest in notes, feel free to message me if you want to talk in more detail.

@Lisa Lanata If being self employed is giving you issues getting a loan on properties I know of a company that sells cash flow rentals with seller financing in place. They require a large down payment, but there is no other underwriting. Message me if you would like more details. 

With regards to determining a good deal, I always look at true projected cash flow after PITI, repair allowance, market vacancy, and management. I then look at the cash on cash return because I think it is a more solid number and more accurate to calculate than an IRR or something more complex with assumptions such as appreciation, etc.

Hope this helps.

I'd rather invest in a note and receive passive income as a mortgage payment, and avoid all the headaches while still making double digit returns.

You can google "Note Servicing" and get a bunch of results. We typically use FCI or National Asset Mortgage. NAM is probably better suited for a seller financed note. I would strongly recommend using a servicer as you are likely not familiar with a CFPB regulations, and you need to keep extremely tight books for servicing your own loan, which most us investors are not well equipped to do. Plus if you ever want to sell your note you are going to have a tougher time is you are self servicing.