I need the real truth about NOTES

[George Frye]

I have been researching buying notes. It is so much to digest that I am not sure where to start. From what I can see the best notes to purchase are performing (if you want to earn mailbox revenue). However I am looking to start off by wholesaling notes as I am traveling out of the country alot and cant deal with actual real estate. So my Questions are:

1. Is it possible to wholesale notes.
2. What is the best way for a beginner to start off by purchasing notes
3. Which Notes would be better to purchase for a newbie (Performing, NPN)
4. Do I need to partner with a broker or is this something I can do on my own

Thank You in advance for your responses.

[Bill Gulley]

5+ units will be a commercial note and that is far less regulated than residential 1-4 units. You really need too ask an attorney familiar with lending regulations in your state, better yet, call the state finance department or state banking regulatory department and tell them what you are planning, in detail and they will tell you what you need or how to do it. "Wholesaling" in notes is different than in RE and really not the term to use with them as that can get into other banking regulations, just say you'd like to buy single notes.

Just a note about regulators. I realize many investors or operators feel like a regulator is the last person they want to speak to, bringing attention to themselves and getting themselves in trouble. Not the case! They are much more interested in getting someone on the right track than having to chase down future complaints and claims and have to investigate some matter. Most likely they won't even take your name, but you should give it, but an hour later they may not even remember it. So use them when you can. Don't ask for advice, they can't give it, pose the situation, quickly and clearly and simply ask if any special license is required and where to find information, they can usually tell you that if your activities fall under their authority. :)