Best State(s) to buy Notes

[Kent Foltz]

I am interested to know if seasoned note investors would recommend the better states to buy notes. By "better", I mean in terms of (1) return (2) licensing restrictions, and (3) state law.  I reside in CA, and have invested in first and seconds in my home state.  However, I believe the returns can be significantly higher in many states.  Also, I understand there are certain states that might be best to avoid.  Any information on the states to avoid would also be appreciated.  

[Andy Mirza]

@Kent Foltz I think you've got to put the time in to research the different states and find the ones that will be the right fit for you.

I started with non judicial states only then moved to judicial as well. The more states that you are willing to buy in, the greater the pool you get to pick from.

Generally, notes with properties that are in states that have longer timelines to foreclose will have greater discounts to account for the greater risk and longer time commitment. This can be an advantage as smaller investors are far more nimble and get things done much faster than the big banks.

There's a reason that pools nowadays are heavy with notes in slow moving states. There aren't nearly as many notes for sales in the states that are quick to foreclose.