Looking to make first note purchase

[Chase Gochnauer]

I own a small business that manages bank foreclosed properties. Clean them out, change locks, repairs, etc. I'm looking to supplement this with purchasing vacant NPN notes with the intent of foreclosing, basic, minor repairs and then resell. Much focus is on getting notes to re-perform, but this better suits my current business.

I'm looking at a basic one in my home state, BPO of $29k, $11k purchase price on vacant 1st lien NPN. Looking to foreclose, take possession an resell.

Has anyone else focused on this side of NPNs rather than getting them performing?

[Mike Hartzog]

Bob's comments are spot on. Personally, I have found that there is not adequate margin in gaining title to a low value property through NPN and these things are frequently trashed on the inside. You have a bit of an advantage given that you are finding notes in your own area, you could do some additional reconnaissance on the property. Depending on the area, bank REOs can often be purchased as similar or lower pricing than NPNs, and you get the advantage of fully inspecting the property and avoiding the time, cost, and risks associated with foreclosure.