All Forum Posts by: Zach Bollman

@Chris Seveney Thank you for the information. I have seen a bit about FCI — they wouldn’t be one of those you would use, would they? 

Also have a related question: for someone new to notes but happy to put some effort into them, would you suggest sticking to performing notes for the first bit, or perhaps dipping a toe into a non-performing note? The reason I ask is the performing notes tend to require quite a bit more capital to acquire while non-performing notes are obviously less expensive — for someone uncomfortable with putting $60,000 into a single performing note, potentially putting $5,000 into a non-performing note as a learning experience seems like a better route. However, being completely new to this, I’m unsure on the reality of the situation.

Thanks!

Hello all, I’ve been looking into note investing and am curious what everyone’s experiences are on BP. Notes seem to be pretty capital intensive due to the cash purchase requirement. For example, with $50,000 available to invest, one would be hard pressed to find two notes. As a result, diversification seems to require large amounts of capital up front. Holding a single note goes against the strong majority of my investment knowledge from securities. So am I missing something? Are notes just a different game where investors often hold one or two, or do most investors get into notes later in the game when they have enough capital to purchase multiple notes? Thanks in advance!

@Marco Bario Thanks for the information. I'll dig through the forums and see what I can come up with. 

@Bill Loeb Great information -- thanks! I didn't realize that services provide middle-man services for negotiating with non-performing debtors.

@Marco Bario Do you know of any resources that provide credible reviews of servicers in relation to smaller notes, such as a $30,000 second lien?

@Marco Bario Indeed it does depend!

My comfort with notes in Missouri is that I'm licensed to practice here and thus can avoid a bit of the legal costs associated with hiring a local attorney should issues arise. I seem to have the same view as the attorney you know. 

I'm curious regarding your experience with the servicer and the non-performing debtor. Given that the note is currently non-performing, have you left communication and negotiating up to the servicer? I'm not really sure how this aspect works as I assumed creditors worked directly with the non-performing debtors to attempt to establish a new obligation to get the debtor reperforming. However, perhaps my assumption is a bit out in left field when compared to practice. 

As you can tell, this is a completely new realm for me. My practice is focused in real estate development, incentives, and commercial/corporate real estate, so the world of residential real estate is completely new. Thanks in advance!

Hello all, I have been investigating notes available from MLS and other sources, but am a bit reluctant to purchase a note that is outside my state. My concern is working with the borrower should the note become non-performing. Is there anything that I should be aware of, such as certain states to avoid? Additionally, does anyone have advice relating to purchasing notes from different states? Thanks in advance!

@Joel F., @Julie N., @Cara Lonsdale, @Alan G.:

In your experiences, does Section 8 housing favor certain property types? For example, I would expect multi-family units and small single-family units to be best suited for Section 8. Is there any truth to this, or have you found that Section 8 housing rents very similar to non-Section 8 housing? Thanks again!

@Julie N. and @Joel F., thank you for your insights. I hear people say Section 8 housing is terrible. However, these are not investors. Is this simply a misnomer that most people have — the idea that government assistance housing means the worst of the worst? I think of retirees, people down on their luck, and the occasional bad person. Thanks!

Hello all,

I have been looking to personally get into real estate for a while and spoke with a guy who specifically rents Section 8 housing. After some review, this seems to be an interesting niche market. Does anyone here have experience with Section 8? If so, how has it gone? Any and all info would be greatly appreciated.

Thanks!

Z/B