Minimum Note Purchase from a Bank

[Daniel Reimel]

Hi all,

I am increasingly interested in the 1st lien non-performing note space after first listening to Bob Malecki's podcast a little while back (probably still the single best podcast on notes I've heard). My cash is @ $50k for the investment at present. I will need to budget for legal fees and carrying costs so my max would probably be 1-2 deals with this amount.

Hoping to hear other note investors' experiences with minimum purchase point from a small or local bank. Has anyone ever gotten in the door with that low of an amount or will I get lauged out and be wasting mine and the bank's time?

 FCI Exchange, Note trader and the BP marketplace all have what look like some ok-ish deals. Biggest concern is settling for a thin margin on a retail priced entry level deal which could knock me out of the game, particularly on a (relatively) low dollar value investment where margins will be slimmer to begin with. 

My options are:

1) Hold out, continue to research and learn while saving up more funds then buy a group of NPLs at a later date with increased barganing power from local banks. 

or 2) Prospect banks now and tackle a deal or two with this amount if at all possible. (Preferred for sake of learning the business. I am a believer you can only learn so much sitting on the sidelines)

Appreciate any experience or knowledge the community may be willing to share!

Thanks,

Dan

[Scott Carson]

@Daniel Reimel have you ever thought about bringing in OPM to help you close bigger deals?  I've been buying from banks, mortgage bankers and hedge funds for years.  There are a lot of regional banks with assets that they will move.  You won't be buying from Citi, Chase, BofA, or Wells with $50K, but you can still buy one to two deals.

Reach out to SD IRA investors or drop me a PM and we can talk more.