Successes with FCI?

[Jonathan Napper]

I have read numerous threads on here about Notes with FCI, Granite & Kondaur,  I also read people saying "Any note bought online is junk" , "The seller is just looking for the next bigger idiot."

Any Note investors on here - who have conducted business with either of these companies, actually verify such statements? Can anyone share successful Note purchases from these providers? I am not necessarily looking for detailed breakdown, but  can anyone vouch that there are good Note investments to be had from these providers?

Thanks

Jonathan

[Bob Malecki]

My last 3 npn purchases were through FCI Exchange and they worked out well. The FCI staff were very professional and diligent in the management process, the notes were purchased at a good price and all the transactional processes were completed without a hitch. 

Now, realize that there are a LOT of overpriced notes and probably many that have more severe problems than the seller wants to deal with (hence why they have it posted for sale). The good thing about FCI is that I have the ability to review the collateral files and have the seller answer my questions during the due diligence period using the online chat tools when the indicative offer is accepted and we move to the subsequent steps in the FCI portal online. There were other notes that I ended up passing since the collateral files exposed things that I did not want, or the seller was unwilling to lower their price after we found back taxes or other liens that affected the value. 

I'm also on Granite and Watermark's lists and most of the assets they offer are pretty much bottom of the barrel notes that they themselves don't want, so they sell them off to the smaller investors. Some diamonds in the rough can be found, but you have to wade through a lot of "hazardous waste" to find those gems. 

Basically if you are just looking for one-off note purchases and have the time to do research, you can find some decent values on the FCI Exchange site. To find a higher grade of assets you will need to be able to fund a larger pool of notes than take what you want and sell off the rest. This is what Granite and other aggregators do.