Due Diligence and Bidding on Performing Second

[Andria Kobylinski]

Note question. I have been doing tons of research on the note space and feel like its time to jump in and get my feet wet. I am looking at a small performing 2nd in Virginia. The first is performing and there in plenty of equity coverage on the second.

What other due diligence do you do on a performing second? How much do you typically bid? Is it based off of the unpaid principal balance? (Which in this case is about $12,000 at a 7% interest rate?)

Thank you!