Buying your first note

[Telless Cade]

I'm looking to purchase my first note and I was wondering how did you acquire your first one? I'm currently cold calling banks and I'm putting together a list now for mailers. Also I'm looking in my network to see exactly if any lenders I know could sell me some.

Am I missing anything?

Also, I have about 5K to spend. Is that enough?

[Terrence Evans]

A few things...

1) The only banks who would consider selling distressed assets to individuals would be small/tiny local and regional banks. Larger banks are extremely unlikely to sell one offs.

2) You would be better off approaching owners of owner finance notes if you are putting together mailers.  You are in TX and TX is the largest source of seller finance note originations.

3) $5K is small.  What kind of note are you looking for? (Performing or nonperforming?)(What state(s) and why?) My first note was on that order but that was just the note.  You also have to budget for legal, any DQ taxes, possible force place insurance, and the unexpected.

4) I personally use brokers and relationships with folks in the space developed over the years.  You can also look at portals like notesdirect and Paperstac.