Non Performing notes

[Elehue Pierce]

How do you get Financing to buy non performing notes?

[Doug Smith]

It's not easy. We do have banks and institutional investors that do provide some leverage for us to purchase notes, but it was really hard starting out to get that financing. We started by getting a couple of very deep-pocketed investors to buy into our experience and system. Once we put together a couple of good years, it became time to consider a Reg D 506 (c) offering. Leverage was hard to come by and we needed a strong track record of putting together verifiable strong returns over many, many deals over a period of time. Start small and don't try to run before you crawl. There is no magic answer other than a rich uncle. It takes time.