More Notes Than Buyers

[Roland Thomas]

I'm looking to connect with some investors who buy pools of performing notes. How do you measure their value? What do you look for? Where do you buy? Is location a preference? What is your criteria?

I'm meeting more and more people of who have notes to sell and no one to buy, I would rather move a pool than one here and there.

[Gary Baker]

This is an interesting observation. As a new investor I do not see any low hanging fruit and I certainly have not found any notes discounted that much, unless they appear as lost causes. I have seen re-performing seconds at upwards of 80-90% without the FMV covering the first position. Obviously I am not looking in the same places as Paul and Roland.

My gut feel is that there is a bubble in notes currently and if, what the industry experts say, that a flood of notes is still to hit the markets in the near future, then this bubble will burst. Also, from all accounts there are the bigger players using venture capital and that eliminates the smaller person, especially if they fall just outside of the sophisticated investor requirements. I have yet to pull the trigger on  a note, but I am considering dealing with tangible tenants and toilets until I can see my way clear in this.