All Forum Posts by: Arthur Mayer

This is not a good deal. Ideally you want to buy 2nd liens with a preforming first lien. This person is getting rid of all there debt and that will leave you in a bad position. This type of lien should be purchased as a part of a pool of 2nd lien notes. This way if this one didn't work out you could have other liens that might be profitable. 

The best education I ever got was from the first note that I bought (a non-performing 2nd). It seems everything that could go wrong with that note, and then the market, hence the securing equity, went wrong. BK, foreclosure, eviction, etc. I was ignorant when I bought the note and emerged a stronger investor.

That was back in the 1980's and I still love paper!

I'm so happy that I got those lessens using only my money. I had to fix the problems, keep the first current, deals with a crappy foreclosure firm and overall be at the mercy of a BK judge who was pro-debtor. This would not have been the same experience had it been other people's money. I would had to get their agreement along many decisions and really slowed me down.

I suggest learning the craft and the business first and risk your own money before messing with others' dough.

Here's a good book to check out on Amazon: Performance Anxiety by Gordon Moss. Not a technical book but one to help understand certain aspects of the note investing game.

If I start a lemon aid stand and I don't know how to grow lemon trees or how plastic cups are made. Maybe I don't understand how sugar is grown, processed and how my water is purified and the exact locations it comes from, does that mean I'm not in the lemon aid stand business?

@Dion DePaoli ,

Thank you for your post. Just to clarify, when I said "10 cents on a dollar" I meant 10% of the outstanding loan principal.

You call it "fairy tale" but this is where I got it from: http://www.pprnoteacademy.com/free-training/note-investing-101/find-deals/

They cite 0.055-0.125/UPB as the wholesale price of the defaulted mortgages.

I don't know how true or not true these numbers are but I thought that no one would put an outright misinformation on their website if they value their reputation.

If you know any negative info about this company, I would like to know it too. I may buy notes from them and so far I could only find positive reviews.

It would also help me tremendously if you posted stats on several notes that you own. We could then discuss them as real-world examples instead of reviewing some fictitious notes.

Thank you
Nick