Sources For Acquiring Notes
Using discount mortgages (notes) along with cash is a great and profitable way to buy a home from a seller. That I understand.
I'd like to know if it's worth it to invest in Russ Darbey's America's Note Network or if there are other sources available that would enable me to track down and acquire notes to be used in my real estate negotiations.
As always, any response is greatly appreciated.
So, are you looking for ways to find note buyers?
Sounds to me as if the questioj is about finding note sellers - not note buyers. If I correct in understanding the original question, then I'd like to share the question. Where are some good please to find note sellers, and how should they be screened so as to maximize the potential of the note being a good investment?
Thank you in advance!
MarleneM
To rephrase:
I'd like to know where I can locate notes for sale. Are there sites on the 'net? Should I join America's Note Network? Has anyone heard of Rus Darbey?
I'd like to pursure using notes in transactions, but I need to have a source for acquiring them first.
Thanks again.
To screen the note you would want to get records of the payment history. Make sure there is at least three months of history. The more down payment they put down the better. For about $20 you can run a credit report....
also, don't pay full value. Make sure you discount it based on payment history and down payment. I have seen notes sell for less than 50 cents on the dollar. A good average around here is 8%.
Hope this helps.[ Edited by bert on Date 02/17/2004 ]
Reading Dalby's site & others, one can readily see that there are LOTS of his students & buyers of his stuff very frustratingly looking for notes to buy...so clearly RD isn't really much of a source for one who is just looking for notes to buy.
His course, tapes, etc. seem to be on the order of teaching newbies the basics of the note business...NOT how & where to find those notes .
I got the same impression from Note Network. I can get the investors, I need the notes now. I doubt those newspaper ads are very efficient, everyone who goes to one of the seminars probably puts one up. Anyone have success with other systems?
Clegg
Along the lines of note brokering etc.
I have been busy but my money hasn't always been quite as busy.
What do you think about making a hard money loan at 65% LTV @ market points and interest? If I do due dilligence and make sure that the propertie value is not overstated then I can make money in the interim and if the investor defaults I can pick up the property cheaply ?
Great Ideas, but alas out of time.
This is the day when the smart Real Estate Salesperson sets his sales not with an owner take back note but with an Institutional source making the first loan at 80% to hold down interest and costs. Then they clobber the dear Buyer with a second for the balance of the purchase price the same institution takes back that note but this time points are involved and the interest way up.
The course work you all are talking about was based on the premise of an owner taking back a first or second to obtain his sale price. Almost gone.
Still if you wish, why not do it the way everyone else does it who wishes to buy notes. taken back by the property owner on sale. Much reduced in volumn but still a few.
As most of you are aware there is a record made at the Hall of Records of each transaction that is recorded during the day. You access that recording and you program it to give you a copy of every second or first taken back by the Sellers.
You pick up your copies, back to the computer into your service and the simple way is to create a list of the names and addresses of each Note secured by recorded Deed of Trust here in Calif. Upper left is the address to which the Deed of Trust was mailed upon recordation.
You then set your mailer or cards or whatever and you based on what you have observed make your offer to buy.
You can always change it upon finaly meeting with the Note Holder. The volume is high as this is the recording wicket open from 0800 to 1730 hours. Remember a copy of this record, computerized of course goes to the title companies. etc. etc. You just make arrangements to participate. You can even arrange to get a copy and then wait a day and then do your mailings or cards or calls, whatever.
I am at loss when you mention large profits on such transactions. I think a poster mentioned wanting to utilize such paper for future downpayments on property purchases. I cannot see an edge over normal transaction to buy.
My theory in days gone buy was to accumulate them, turn them over to my bank for collection and utilize them (at face) as a collateral against which the bank would loan me money for other ventures such as foreclosure sales and the purchase of notes prior to foreclosure sales to utilize to bid up above the foreclosure sale. For example you buy a second trust deed about to be wiped out in a foreclosure sale. You buy it for ten cents on the dollar and utilize it to bid up an up and up. Great fun bidding with ten cent dollars and everybody else at the sale is utilizing real money. You can take it all the way and gain property at a much reduced price or you can drop out when the other bidders begin to hesitate and just take your profit.
I think you all get what I am talking about. Each location in our great country is different so you merely start at the Recorder of Deeds and trace back and see where the Record of Daily Recordings goes. Then make your arrangement.
If you are trying to work with Private Money types who stop at 65% L/V. Loose them their time has come and gone. If necessary give full recourse to your investors and then utilize them on a point spread which is satisfactory to yourself. By giving full Recourse you of course control any future activity on the notes so pledged. You just pull them back when something happens. You subsitute in your Trustee and go for the property. Now thats the way to handle things in the here and now.
Lots of fun. Enjoy.
Cheers Lucius
[ Edited by bert on Date 03/17/2004 ]
HolleratG,
have you ever thought about approaching Finance companies or credit unions? It seems to me that they must have their share of "non-performing" notes/mortgages that they would love to get rid of. Approaching them about buying these delinquent notes is a way for them to reap some benefits rather than foreclose. Of course you would be asking them to give you an Assignment rather than a Satisfaction - that way the face value stays intact.
It also offers you one of 2 ways for an income stream. You could either restructure the debt (lower payments coming in more consistently - maybe) or you could trade the notes with someone else - for cash or something else.
Thanks for the response so far, guys. I'll be scanning the ads a little more closely and I'll see about contacting holders.
Any other ideas, don't be shy.
you mean you can actually go to the county recorders office and print the info? do you have a laptop connected to their database? or is this a query given to the clerk and then you purchase your copies? for luscious sorry for the mispel on the name im a bit of a newbie. although I work for a large direct lender and always look for new insights about my career.
Moises, would you please be so kind as to post any aswers publicly so that we don't accuse you of board hustling?
Thank You for your attention in this matter. Shawn(OH)
Moises <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by loanwizard on Date 03/05/2004 ]
I too would like to where to purchase notes. performiong or not
I am very interested in the process of finding seller financed notes through the recordings in the county clerk's office. I know that I can search one by one through properties or individuals and find recorded notes. This is a very laborious process. I'm looking for a way to speed that up. Seeing a summary of daily recordings has some appeal, but it would be nice to get summary reports of non-institutionally owned notes. Am I hoping for too much here? I'm going down to the clerk's office to do additional research on this, but any experienced wisdom is more than welcome.
I believe you are wasting your time, and have not been reading what others with experience have been saying.
John Merchant is a REAL PRO in this industry, so listen to him. Look, if you have come up with a way to search county records every day and easily pull owner financed notes, great.
But I think the best way is to network with the professionals that will run into these people with these notes. Position yourself as the go to person for the purchase and cashing out of old and new notes.
Best of luck, Dave
Unfortunately for most counties through the country, it is a labourous task. My best suggestion for you is to hire yourself someone that researches notes at the courthouse. There are plenty of people that do this either part time to make extra income or do it as part of their job. I do this for some TN counties, but not Va.
If you are interested in notes in the richmond / va beach area, I know someone who collect data for that area. Otherwise, you may want to post a flyer in the courthouse etc. Kinda depends on what / if your willing to pay for a list.
As far as whether it works. It must work to a point because I have 4 clients that contract me to research notes. (Two of them are affiliates of banks tho, so only 2 regular investors)
On my old buddy RD.... I bought a scratch and dent copy of his program cheaply, I was on the Note entwork for a little while. I get emails, and phone calls daily by folks wantin to buy the one note I own. Russ's buddies call me about once a month to offer me his latest greatest no work all riches scheme. NOT a big fan....
Where do you find notes?
Probate, Divorce attornies.
CPA's
Finance companies... if you have the Kahounahs.
Bankers
Financial Planners
Newspaper ad's " Structured sellements" genre
Follow the hearse.
Anyone who works with retiree's
That's all I can think of for now.... Oh yes... BKR attornies and failed investors too... neva know what you'll find there.
Good Luck,
Shawn(OH)
I may have a note that I want to sell.
Contact me.
312-201-1130
Brian
i am an investor in kansas city missouri lookingfor note buyers...please see my profile and forward guidelines...i tried my hand at brokering for Charter a few years back...did the whole ad in the paper thing...online forums ...all that...the best way is to connect with real estate investors that create the notes themselves....so that means calling ads in the paper where investors are advertising owner finance in their on their properties...chances are they do this on alot of their properties and have a bundle of notes....i know investors in this area that would love to connect with reputable note buyers...
i am a newbie looking for in??? any advice>>>> thanks
Here are a couple of sites that has notes for sale.
http://www.nbdc.net/notemarket/NoteMarket_Contents.asp
http://www.mortgage-investments.com/cgi-bin/classifieds/classifieds.cgi
Nate-WI