All Forum Posts by: Arthur Mayer

Arthur Mayer has started 8 posts and replied 68 times.

Correct. I was wondering if taxes get treated in the analysis the same way you would treat a priority lien, and if they are treated similar in terms of exit strategies and incorporating delinquent taxes to the equity of the property in the event you have to exit through the property.

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Hi guys, I was hoping at add a few notes to my LLC, and I had a quick question on Delinquent Property taxes on a note. In terms of analysis/due dilligence, do you account the delinquent taxes in your CLTV when analyzing notes since you will most likely be exiting through the property?

Second, do you ever reinstate delinquent taxes on the property? Also, is it possible to modify a payment plan for the delinquent taxes?

Thanks for your input

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Welcome fellow Southern Californian!

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Originally posted by @Bob Malecki:

Adding to Mike's comments, you may want to find a local RE agent for each property to have them do a drive by or even peek in the windows. If the interiors are trashed, any profit margin evaporates. Ask me how I know this.........

How do you know this, Bob? ;)

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Originally posted by @Rob Cee:

Originally posted by @Rick H.:

Origination is great. My weird little nano-niche is pretty low volume and includes a bit if origination.

Buying existing paperwork means accepting the work of someone else. There's money in fixing their mistakes or the circumstances that befall you note sellers.

IMHO, too many people with too much cash trying to buy too few good deals, notes included. Many of the people who bought notes thru guru-nomics are discovering that much of that paper has little market value outside of their sphere.

I suggest you find a live conference to attend that is not dominated by any one personality.

And Bill Tan might appreciate your phone call or email. Or, get in a plane and go see him.

You're smart. You get to choose who surrounds and influences you.

Rick, there are so many great real estate investing speakers in SoCal, we don't have that as much up here in the PNW. You probably know Mike Cantu, Bruce Norris, Tony Alvarez, Rick Solis too. I invested in a some trust deeds in SoCal with The Norris Group a while back when they had more, they are the gold standard, I just wish they had more stuff! I'd love to try and get a higher yield finding discounted notes. But IMO it's a big jump to finding and safely buying solid high yielding safe discounted notes out on the open market vs. funding HML's though hard money lenders like TNG for example. I also like that the HML's that I fund are business purpose commercial loans. Whereas with most discounted note investing you are venturing into owner occupied loans, and thus subject consumer finance laws, which adds a lot of complexities.

Gerald Lemoine in Orange County has his annual Note meetup this Wednesday. I was thinking of attending it myself. I think he's been doing notes for a while, although I've only been to his meetup once, and they had what seemed like a novice speaker. He charges $20 at the door.

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Originally posted by @Tiger M.:

Been doing notes since 1996. Have done 100's. Did approx. $175M between 2000-2007 alone. Currently trading performing and working NPN. What are you trying to figure out?

Are those trade-able to non-accredited investors by chance?

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@Dave Van Horn

Thanks on the picture! Good to hear from you again. Let me know when you come visit Los Angeles in the future. I really enjoy listening to your video conference calls on notes.
Just to clarify, BOTH are 1st NPNs. Sorry for the confusion

@Mike Hartzog

Love your calculator you created. It really makes analyzing notes much easier. Can you elaborate on costs you account for past the facevalue of the note price? I imagine that would include Foreclosure fees mainly. What exactly are holding fees?

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Here are the few NPNs I was looking at purchasing:

1st Note:

State: Illinois
Asking Price: $1,750

Balance: $62,724
BPO: $13,200
Delinquent Taxes: $7,867

2nd Note:

State: Indiana
Asking Price: $2,000

Balance: $56,603
BPO: $18,000
Delinquent Taxes: $5,534

I was just interested in the expert's opinions on these or are there additional due dilligence you would ask for on these two particular notes.

Thanks in advance

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Originally posted by @Joe C.:

I personally like the NPN 2nds a lot. Easier to get into as far as funds requirement. Margins can be sky high, but realistically above average. It can be riskier than most other investments but if you learn to buy right and the tricks of the trade, you can mitigate much of the risk. Sometimes knowing the laws can help turn some risks to favor you.

I have bought from FCI. All the notes that I bought from them, except for one (still working on this), have been worked out with positive results. In fact, my very first workout was on a note bought from FCI and it is my best workout to date.

You can find sources for notes by attending trade shows and conventions. Great places to find and network with the vendors and other fellow investors, too.

I'm glad to hear FCI is working out for you. For some reason a lot of people dog on FCI where I feel I find very good deals on there.

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Even if there is enough equity in the property to cover tax liens and the 1st lien and the 2nd, the 2nd will still get wiped?

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All Forum Posts by: Arthur Mayer

Arthur Mayer has started 8 posts and replied 68 times.

Post: How are Delinquent Taxes handled/accounted for on NPN 1sts

Post: How are Delinquent Taxes handled/accounted for on NPN 1sts

Post: Newbie from Los Angeles, CA USA

Post: Need opinion on a few notes:

Post: Note investors with at least 10 years of experience in the note business on this forum?

Post: Note investors with at least 10 years of experience in the note business on this forum?

Post: Need opinion on a few notes:

Post: Need opinion on a few notes:

Post: Note Investing

Post: Assuming risk when foreclosing on a note