I Have Just Finished A Seminar About Buying
nonperforming loans, and the instructor
said that we could make huge profits
by buying 2nds with 10 cents on the dollar. Is this realistic? What is the average that I actually can get? 50 cents
on the dollar? He told us most banks won't sell their bad loans, but a few will. He told us to just start by calling a lot of banks after finding our properties, and to bid on the 2nds. I am hoping to make $20,000 or $30,000 on a few deals this way soon, but I have a feeling, things won't be as easy as he told us, or even possible at all. I am in California, and
would like to know if there are any laws against this type of loan purchasing for the individual investor.
Is there a lot of competition for these loans so that you have dozens of people bidding on the same loan?
Any comments from the board would be appreciated. Thanks!
You can get foreclosre lists (daily) and only single out the seconds that are being foreclosed on (or in NOD), this is a great way to get the info you need to contact the banks direct and ask them about purchasing the 2nd. You'll have all the info you need to get started, and contact phone #'s as well. Maybe better than just calling banks and asking for "deals", not all lenders are banks anyway. Hope this helps.-MakoShark
seconds are normally unsucure except by lien. You could market to by performing second notes from investers for .50 on$ cause they are hard to sell