What The Gurus Do Not Teach You In Note Investing - Part 1

[Chris Seveney]

Figured I would start a little series talking about my day to day in note investing and what the gurus do not teach you as they always make note investing seem black and white where in reality, most of it is in the gray area.

Here is an example, you foreclose on a property and the property is still occupied. Now what do you do? 

Well, a foreclosure does not evict someone living there, you need to evict them.

So in most cases you start the eviction. No problem right.

So what do you do when you find out the borrower is in prison and the 17 year old daughter who is a junior in high school is living in the property and she is trying to find a place to live with a friend and needs an extra 3 weeks. Do you continue with the eviction which would occur in 2 weeks?

Most will immediately say yes and think its that simple. But what about this option - you get on the phone with the individual and a realtor and let this person give the realtor access. Get inside photos of the property and see what it looks like and if it appears that someone is getting ready to move?

This is what we did, and the daughter was in fact starting to pack and move out. She was very friendly and work with us. While we do run a business that is for profit - you always do not need to be a hard ash and if someone is going to work with you, then extend the offer.

So this is what we did, and guess what, she did not trash the place, she moved out and took all her stuff and left the home very clean and spotless. She was very responsible. Not every person is like this, but this is where you also need to get a good read on people to understand - as I started with, its not black and white but its gray in most instances.