Note ROI Calculator - Expenses to Consider

[Michael Rosenson]

I am putting together a Note ROI Calculator for myself (since I know better than to go asking for one :) ) and wanted to seek some input for what expenses I should be considering. I currently have two expense categories: Guaranteed Expenses (ex. Servicer Costs, Income Taxes), and Potential Expenses (ex. Expenses incurred while going through a workout process like taxes, insurance, etc.).

Two questions for you all:

1) What expenses other than the examples I gave do you think I should be including/considering?

2) Do you agree or disagree with my decision to split up these expense types?  And why?

As always, thanks for the insights!

Michael

[Gail Greenberg]

@Michael Rosenson many servicers like FCI are national. Madison Management is very popular but doesn't service notes in NY and they also are not partners in some Hardest Hit Funds like Georgia's. Not to overcomplicate, but that will be something to consider.  Many attorneys are licensed in more than one state but usually not more than a few. If you find one you like, you might decide to focus on the states they cover. That's kind of happened with me. 

As far as how do you determine what to budget for a foreclosure. Here's a general guide - http://madisonmanagement.net/investors/foreclosure... - but it can vary a lot by county. I'm doing a foreclosure in Montgomery County, PA and because of very high sheriff fees in that county, it will be about $7000, not the $5100 it says on the table.

Many attorneys charge the "Fannie Mae" rates as their fee to do a foreclosure. It's the state and county fees that vary a lot and will get you if you're not careful.