Have a Note buying question

[Clinton Smith]

Hello, I recently spoke with an investor/seller, who has a 4 plex in the Petersburg area.

He offered $1500 for the note to take over and I would secure the Deed of Trust. 

The property is still in the owner name. He advised can possibly foreclose on the home or get the remainder of the balance due which is $3K.

Any suggestions or advise on securing the deed under my name.

Anyone experience in this type of transaction.

Please send me a message with further details

Thank You,

Clinton

[Bill B.]

I am NOT experienced in the FL market.

That said, I know that foreclosure in FL can take many months and will cost more than the $1500 margin between your purchase price of the note and the $3000 face of the note.  Even if there are significant fees and back payments owed, I doubt there is enough meat in this deal to profit.

The low amount outstanding makes me think this may be a second position note.  If so, you have to be certain that the first is performing.  If not, and the first forecloses, you can lose your entire investment.

It is nice to make your first deal with a smaller investment, but it sounds like you are very new to investing in notes. If that is true, I'd strongly suggest that you find someone near you that invests in notes and offer to help them with their business. You will learn from the inside how things are done. A local REI club is a great way to meet people who are already experienced with notes.

I hope this is helpful.

Bill