If you dont have the money to buy them, you gotta start somewhere.- Who you know in the business is key for deal flow. My advice is to not attempt to chase seller financed note deals.
If you have any other questions, shoot.
...?Lets say I got 20 to 30k to invest, and I buy a note on a house thats say, worth 100,000 or less . (Yes probably in a rough part of town....or does the cost of the house even matter?? ), and I want to refinance the note...How do I do this without an attorney by my side every minute charging me out the ass to make sure im taking all the right steps and precautions?...
I know there are plenty of note-buying websites, but how do I tell which ones are legit and which ones to avoid?. And when it comes time to refi the note, WHY would the seller agree to having higher monthly payments, just so I can make a profit?
I know I need to do more reading on this, and I don't think Russ Dalbey's course is the right place to turn. Anyone here got some good links/ books to recommend?
EDIT: I have a friend who also recently joined L4P, and he MIGHT go into business with me on this (12k maybe). He's pretty conservative with his money though.
Chump, was this the thread you were referring to for me to check out?Over the past five years, I have invested my portfolio heavily in private money financing consisting of 1st and 2nd TDs on properties in the Orange County / Los Angeles area. I've stayed out of the distressed debt market and instead have focused on the fact investors can have a great return on ivestment due to banks no longer lending to people even though the transaction makes sense. Properties with a LTV under 60% in an already depressed market. I basically put people who need money(through loan brokers) in contact with those who have money(who I represent). I've written approximately $45,000,000 in notes through that time. I am starting a new phase over the next couple of months actually setting up a Reg D fund.
There's a lot of opportunity out there. Protect your money and more importantly, protect others'.
Industry Overview:
The Capital Markets are paralyzed due to recent regulatory changes, poor underwriting, inflated home prices and a global recession. The mortgage industry is experiencing high delinquencies, legacy issues, archaic technology, inadequate workflow and capital restrictions.
The new lending environment is an ultra-conservative one, where financial institutions are reeling over past indiscretions. The majority of borrowers can’t qualify for the government-sponsored loan programsneeded to obtain real estate financing today. With the MBS and CMBS markets frozen, direct portfolio lenders are left to fill the void.
The financial crisis has created a tremendous opportunity for a portfolio lender to generate high yielding conservative loan-to-value loans that are not high cost and are in compliance with the new Dodd-Frank (H.R. 4173) Wall Street Reform and Consumer Protection Act; but do not qualify under any Fannie Mae, Freddie Mac and FHA guidelines.
