buying notes from an exchange

[Les Goss]

What are your experiences with either FCI Exchange, Watermark Exchange or others?

Thanks,

Les

[Scott Carson]

I'll give you my honest opinion on these exchanges....

FCI Exchange...while I like FCI's back office and online support, I'm not a fan of their exchange.  I compare it to being like Loopnet...if its on the exchange its usually not a deal.  I've been burned too many times matching the online bid, only to have the seller up their bid to an idiot amount.  Lots of individual buyers list their assets on their and are looking for retail buyers.

Watermark Exchange...I've known Val for some time now.  Heck, we did a lot of marketing to help him launch the exchange.  Great website with the 5 exit strategies.  But you want to make sure and do your own due diligence.  Realize that Val takes pools under consignment from sellers and makes his money "wholesaling" the assets.  I know a lot of people worry about the time it takes him to return phone calls or emails some times.  I also do know that a seller pulled a pool out from under him that he had presold a large amount of the assets and after getting them funded, he then had to return the funds.  Hey, it happens!  If you've got a chunk of money, you might reach out to Val and he can help put a pool together for you.

You might also check out the NoteDepot.com with Joe DeSilva.  Joe put this website together based on his time at RSI as a trader.  Joe gets different lists in from sellers and markets their tapes for a small $500 fee to him from the buyers and steps out of the way.  

Regardless of who you buy from or what exchange you are getting assets from, remember that they've done the hard work of locating the assets so don't be surprised if you are paying closer to retail pricing.  In this day and age, the more marketing you do to banks, servicers, and mortgage bankers, the better the deals you will find.  

Buying from an exchange is the lazy way to do business.  ALWAYS MAKE SURE YOU DO YOUR OWN DUE DILIGENCE!