NOTES-Is This To Good To Be True?
I am a Realtor and met a guy today that will be listing some pre-foreclosure homes with my group. I talked with him at length and the subject of buying notes on these pre-foreclosures came up. He told me that I or my investor clients can buy these notes at 20-30% on the dollar if paying cash. He has a company that is set up as a financial institution, so he can buy the notes from banks direct. Here is an example of a house we looked at today.
The market value is $425k, and if my client were to pay for the note in cash, the property could be bought at $110k. The owner has already agreed to sign a "Deed in leur of foreclosure", and can be out of the home in 30 days. Keep in mind that this house did need around $100k in work, but the numbers are still there. we looked at two other homes with these same situations, but were in much better shape. I get paid by adding whatever i want to the $110k, and he pays me direct once the deal is done.
What do I need to look out for here? I know a title search needs to be done to check for any liens or second mortgages, but what else? I was also wandering what has to be done if the current owner does not leave the property?
Any advice would be greatly appreciated!!!
Yes, there are investors who purchase "bad paper" from financial institutions. What he is telling you is not too good to be true. Let me see if I can get some answers to your specific questions, and I will post them here for you if I can.
"I get paid by adding whatever i want to the $110k, and he pays me direct once the deal is done."
That sounds like if you were to refer this deal to one of your clients or an investor - this would be your "referral fee" or "finders fee".
Okay, There was an awesome post to this topic and it is no longer on here. Where did it go???
careful...your not supposed to ask...the police will delete your post...with no explanation....
Cwal,
What does that mean? There was nothing illegal discussed on this forum.
tell that to the moderator...he/she has deleted 3 of my posts for just asking the same question
How do I send a message to the moderator? Is there something illegal about this topic?
I already did that w/ my phone number...that was deleted & ignored also...go figure
wish i could help...I also was interested in the responses & read the long post that was deleted...I apparently committed a mortal sin by asking what happened to it & why it was deleted...thus my 3 deletions...maybe someone will answer that is not offending to the moderator...
For those that do not understand let me explain how it works.
When a poster violates the rules such as the poster did with the long post by advertising his company he is sent a private message to delete the advertising portion of the post.
If a poster is not a subscriber they will not get the private message then the Moderator can delete the post for not following forum rules. Also the Moderator could post to this poster in the forum that they have violated the rules, which is sometimes not always the the best policy in my opinion.
So if you are a subscriber then you would get the private message and take the appropriate action regarding your post. If not then you are in the cheap seats and take what is handed to you and if you are smart you would not question why a post is deleted unless you want an answer on the forums rather than a private message explaination.
So of you that have questioned why the post was deleted are you able to receive private messages?
John $Cash$ Locke
TCI Moderator
cwal,
Just recently I was talking with Joel the owner of this site about allowing suscribers to post their web sites in their signature.
My reasoning for this was that it would stop the board hustling by sneaking in advertising and if a poster was knowledgable then it would be up to other posters whether they wanted to learn more from an investor by going to their web site.
I understand that their are people that have a problem with anyone that is in a authority whether is be a Moderator or their own boss. The Moderators on this site were chosen because they agreed to volunteer to help keep the site as safe as possible for the new or old investors. Also their posts were reveiwed on how they posted to help others and context of their posts.
John $Cash$ Locke
john...thank you again...it is frustrating to have a posts deleted for simply asking what happened to another posting & why it was deleted...I read the entire post perceived it to be informational...I did not really take it for advertising...however, you may have known where it was heading....in that case maybe new posters may have to be reminded of the rules by all of us...regards, CWal
Dear Mr. Locke, fellow forum users and owners,
I would like to “Thank you” for correcting my mistakes of yesterday. I must admit that I am no all that well collar and leash trained when it comes to participation in these open discussion type situations.
I must also admit that I did not invest the time or energy into reading the rule of this location before I replied to Mr. ellismatt’s request for more information.
I would assume that what your as a moderator of this location found inappropriate in my reply was the second to last paragraph and the fact that it was signed the post as if had it been a letter of response.
Had I read the rules I would have been much better prepared to participate within this realm of interaction.
Once again “Thank you” for correcting my mistake… I will attempt to be better behaved in the future.
Respectfully,
2littlewords
2littlewords,
Thanks for taking the time to answer my questions yesterday! Unfortunately I did not have enough time to print your response, as it was removed very quickly. If you have the time could you re-post the information, as I am sure it will help me a great deal? If not I understand and appreciate the time you have already taken to help me understand the benefits of my next business venture. Thanks again,
Matt
i agree, it seems people with power tend to want to abuse it.
Are people buying these loans so they can foreclose on the property? What happens if the borrower files bankruptcy? Also, what is meant by Peer-to-Peer financing?
You can get it done, especially if the note has more than 35% subordination or equity.
A few posts have been erased from this thread. Post again without advertising, i would like to hear your response.