Bidding on Non Performing Notes - How low is too low?

[Drew Poniewaz]

Want to to get some of your thoughts on your note bidding  criteria. 

From what I'm gathering there is a fine line between bidding aggressively and "low-balling". So I hear 'if you are getting lots of bids accepted you are bidding too high' and 'I have made x amount of bids and only had 2 or 3 accepted' and 'you don't want to offend someone by bidding too low' and maybe even as extreme as 'you can run the risk of getting blackballed'. I know there is nothing concrete but maybe a few examples or tricks. I have heard no lower than 42% of UPB and that you can give your indicative offer and then try to shave down your offer after you dig deeper into the situation. I realize that once you have more familiar relationships with people that you might be able to break some of these barriers but anything anyone would like to add would be appreciated.