Buying Discounted Notes

[Jim Williams]

I'm thinking of a scenario, and looking for opinions, for buying discounted mortgages.

My thought is to get a note under contract and then negotiate a deed in lieu(unless the seller already has one in place) with property owner before closing. I would then either rent back to owner or get rented if vacant. The next step would be to refinance my cash out and move on to another deal.

Is it realistic to find these with enough equity to refi and enough rent to carry a positive cash flow? Is it better to go thru brokers, or just partner with someone who has experience in these. My note buying experience is limited, but my real estate background is over 25 years working and investing in real estate. This is just a new thought as opposed to straight out flipping.

I have $110k in self-directed IRA, but would prefer doing deals at less than $50k. I'm also not area-bound, but the numbers really need to make sense.

Opinions will be greatly appreciated.

Jim