How Steeply Discounted Are Non-Performing Notes from Banks/Unions

[Dan Nguyen]

Hello BP Friends!

My background is in REI but I'm brand spanking new to "Notes". My interest is in non-performing notes.

I'm hoping members who have a solid background in NPNs could help answer my question.

I'm looking for NPN-sellers who are willing to sell one-off notes. I wish to ideally buy to BRRR but I wouldn't be opposed to flips, getting them to perform or even selling them at auction.

So my question is... based on your experience, are hedge funds buying NPNs from the top 10-15 banks, re-selling them at a steeper discount than smaller banks and credit unions? Or are smaller banks and credit unions willing to let go of their NPNs for less than hedge funds?

I'm preparing to spend a heavy amount of time in establishing relationships with hedge funds and/or banks/credit unions and it would be of tremendous value to learn which are better to go after.

I completely understand things are all case-by-case but I'm just looking for a generalized answer if you had to pick one.

Much appreciated in advance.