Where to purchase non-performing 2nd liens?

[Eric Jones]

Hello,

I'm interested in purchasing non-performing 2nd's and have found a few different online sellers/brokers as well as a hedge fund that sells them. The hedge fund sent me a tape with 800+ notes, but has a minimum purchase size of $100K. Since I am looking to start with two or three notes to learn the process (for a total investment of $15-25K) this isn't a viable option at this point. My plan is to focus on 2nd's with a performing first, with some equity above the first, but not necessarily fully covered.The primary sources I've found are:

1.) FCI - appears to have decent selection. Have heard Gordon Moss refer to FCI (and others) as an "online joker broker" which makes me wary.

2.) Note Marketplace - doesn't seem to be the safest/most legit source 

3.) Loan Market - decent selection of firsts, but few 2nds, and prices seem high across the board

4.) PPR - pricing looks pretty good. Current selection of 2nd's doesn't look great (not many with current firsts or any equity above the first), but have heard good things about PPR. Could wait it out for better selection...

5.) Watermark 

6.) Dreambuilder Investments - very large selection and good pricing, but minimum purchase of $100K 

For those experienced with non-performing 2nd's, how would you recommend getting started and where would you purchase them? I've heard that it's about relationships, but I don't know anyone who invests in this space so I'm not sure how to build the relationships. I'm open to all options as I'm motivated to learn this niche, but first I need to know where to find the notes and the other investors!

[Bob Malecki]

We've purchased 4 notes via FCI Exchange with great results. Watermark does not negotiate and I've never been impressed with their inventory. PPR is a very credible company as well.