Best states for buying first performing/non-performing notes?

[Evan Maloney]

I've really been enjoying @Chris Seveney's Good Deeds Note Investing podcast. One thing I learned is that simply to own a note originated in certain states, you might need to be a licensed loan originator and/or debt collector.

I'm looking to get into note investing, and am hoping to identify the ideal state to get started. Presumably I'm looking for a non-judicial state without any licensing requirements. Any suggestions for a state to buy my first performing? How about non-performing?

Thanks in advance for any advice!

[Evan Maloney]

I should also add to the above that for my first note purchase(s), I'm looking at first lien position specifically.

[Sherry Goettler]

States with the shortest time to foreclose are the highest prices.  Start there.

[Chris Seveney]

@Evan Maloney

Thanks for listening

My recommendation is to look in MO, TN, and MS.

These are states with lower housing costs and foreclosure timeframes are reasonable if you needed to foreclose.

[Bob Malecki]

Of course Texas as well, although finding a well priced note in Texas can be challenging. 

[Evan Maloney]

@Chris Seveney @Sherry Goettler @Bob Malecki thanks a lot for those suggestions. Very helpful.

Also enjoyed your discussion from the Bigger Pockets podcast, Bob. Your appearance and those of @Dave Van Horn are what sparked my interest in notes.

[Bob Malecki]

Thanks Evan!