All Forum Posts by: Loc R.

I have my private investors contact my accountant and give her their information for tax related purposes. She handles the rest.

Does the buyer have something else of value?

Welcome to BP, Corey.

There are a few So Cal based rehabbers and buy-and-hold investors. You shouldn't have a hard time finding borrowers.

Now, if your company will lend against paper then we should talk.

Corey,

To answer your question, the answer is: it means more money in their pocket *if* they can find a better deal.

Why do people go through the hassle of a refi? To put more money in their pocket per month.

What do people shop around at all? To save money.

As a note buyer, I experience this all the time. I make an offer, and the seller holds out to see if they can get a few more bucks for it. I have countered this by writing in bold on my offer letter that the offer is good for X days. I am trying to create a visual of a stack of money with wings flying away...

I was going to wait a bit to reply, but Bill egged me on to reply.

I haven't done anything super creative, but I have increased my yield on a note by re-structuring terms.

I bought a note that had 164 payments left of $350 at 9% interest. UPB was about $33,000. I paid $24,500 for the note. I told the payor that if they willing to increase their payment to $600 a month, I would decrease their interest rate to 7%, and that this would shorten their term to 66 months. In order to sweeten the deal, I sent them over 2 amortization schedules: (1) with the current 164 payments left, and (2) with the 66 month schedule. The difference in interest? About $18,000. SOLD.

My yield went from 14% to almost 19%, and my equity/security in the deal grew a lot faster every month.

I'm sure some of the BP veterans here have some great stories to share.

I'll share some creative paper deals in a bit.

First off, you have to decide whether you want to be a landlord at all. If the answer is a "yes", then I don't see a BIG difference between starting with a 3 unit vs. a 6-8 unit building.

Just make sure everything thinks you're just the property manager and NOT the owner.

Dion,

I just had a note seller in Pittsburgh contact me about a note they had for sale.

It was originated in July 2010, first payment was September 2010. There was not a lawyer involved in the origination/writing up of the note.

So, in that instance, is the note invalid, end of story? Or can the deal be amended 2 years after the fact?

Have you considered countering your current offer with the $4000 that apparently will make you happy?

Giving credit to Carlton Sheets for getting you into real estate is like giving credit to a snake oil salesman for getting you into being healthy.

Fortunately for you Ann Bellamy, you were able to figure it out pretty quickly and go down the "right" path. There are many others who plain and simply got burned by him (and other "gurus") and never want to hear "real estate investing" again.