How to find Notes worth investing in!

[Bhavna J.]

I have 8+ years of experience in the real estate industry but am new to the Note investing arena.

A question for experienced note investors: What are some tried and tested ways of finding notes that helped you grow your business? Would you offer any other advise or tips to someone who's keen on building a successful career in this field?

Looking forward to your input.

Thanks

[Bill Gulley]

Gee, thanks Joel, LOL, I feel discounted now....

Finding notes, is much like RE, you make connections.

Here are a few places to start:

Realtors, make sure they know you buy, you can buy a note at closing providing cash to the seller making the deal fly, usually seconds but some firsts.

Realtors carry back commissions too!

Contractors can carry back work/jobs performed and you buy the paper.

Estate Attys, Trust Attys and Bankruptcy Attys, they all bump into notes held by thier clients. Many of these can be forced sales.

Nursing Home Adminsistrators, granny has to qualify for state benefits based on assets, they can't own more than $999, so they sell the note and spend down the proceeds to pay for care.

Courthouse....notes are filed, you can contact the holders. Any installment contract is a form of financing and you can purchase the equity, modify the obligation if needed.

Note servicers usually offer to buy notes serviced in seller financed transactions, they can also sell.

Make sure the mortgage brokers in your target area know you buy notes, they may have funding opportunities as well.

Make your own sources: Look at the MLS, listed for more than 120 days, there is usually a problem, tell the seller they can offer seller financing to step up marketing efforts and you'll but the note after closing.

Approach small lumber yards and material suppliers, they finance and secure and you buy the paper.

Same with homebuilders. Particpate providing cash or they may carry back profits.

Mobile Home Dealers! Many go to properties owned by the buyers.

Small commercial notes can be found from UCC filings, they may be part of a RE deal, say a small motel, seller's carry back as financing is tough. You can buy the first 50K of a $250K note, called a partial purchase.

Your deeper discounts will come from seasoned notes than notes purchased at closing, but notes closed can easily yield 14/16/18%.

There are more! But if you work these angles it should get you on your way.

Good Luck....