Once I've formulated a plan??

[Joshua Davis]

I have just about finished my real estate investing plan. Last i checked we all could use some help in development. So whats a good way to really proof read (have help proofing) this plan of mine to find out "holes" or a lack of knowledge placed in any of the areas need to invest with smart choices and minimal loses from the start?

Open to any and all suggestions!

-Joshua

[Gerald Demers]

@Joshua Davis, you can buy and sell property of course and control it that way...and we do. 

But we prefer to control the paper; the underlying note (the loan and the borrowers promise to pay) and the mortgage (that offers the house or other asset as collateral as additional security making the note a secured note).  

You buy a house by getting a conventional loan.  That loan is an asset to the bank that lent you the money.  You begin making payments every month.  The note is a performing loan.  One month, you get a letter stating that your bank no longer owns the loan, now X Bank owns it.  Your loan and your promise to pay was sold to someone else.  

Now, you stop paying. The note is now a non-performing note or loan (NPN or NPL). Obviously, since a note is an asset that can be sold, all assets have different values. A note where the borrower is paying on time for many years has a lot more value that a new note where the borrower has only been paying for a few months and certainly more value than a note where the borrower has not paid for 2 years.

We purchase non-performing notes at significant discounts with the goal of returning them to performing loans and helping the borrowers stay in their homes.  If that is not possible, we take steps to get the property back to us so we can sell it.  

I have been solving some really complex real estate challenges over the years and helped many people.  But ultimately, I make money by getting the property.  I don't make anything helping them keep their home beyond some sort of consulting fee and most often, distressed sellers can't pay it.  

We love note investing so much because there is no conflict of interest; we make the highest returns by converting the note to performing and helping them keep their homes.  

We believe that this housing and mortgage crisis has to be fixed by the people of this country; we cannot count on government and wall street to fix it; we can only count on them to allow greed to screw things up again...and that is exactly what is happening right now.  

So how do we fix it?  We partner with private investors to purchase these notes.  The private investor makes significant returns without any work, we profit by controlling the entire process and creating solutions, the bank rids itself of a toxic asset, we help families keep their homes, and we employ local people in the communities where the properties reside.  Win, win, win, win, win.  God it's fun!  

Gerald Demers

Brooks Young Financial Group