All Forum Posts by: Chris Seveney

@Michael Williams - There is no right answer to this, it depends on your situation. I work for a multifamily developer and buy notes for my own portfolio. Each has its benefits and disadvantages and people can debate one is better than the other. What it comes down to is

1. What did you pay? 

2. How are you managing it?

I believe #2 is significantly more important than #1. I am a firm believer you make your most profit when the asset is well managed. In today's economy, the pricing is set by the market with some variation and some discounts/deals. This discount may allow for some room for error, but if the asset is continually mismanaged it will not be profitable and your resale value will be significantly less. This goes for both a note and a multifamily property.

@Chris Serger - you mention the there is remedy in the sales agreement if they file BK. Curious what that is? I wonder how it could be legally binding and withstand a BK. I am not familiar with chapter 11 but in the BK cases I dealt with the 1st thing to do is file a proof of claim so the courts no the $ is owed. 

@Logan Hassinger - have you considered checking out Kimberly Banks Fawcett meetup? She is well known in the industry and has a very large following and has a meetup already in the area. https://www.meetup.com/DFW-Note-Closers-Group/members/47230692/

If you are buying partials, some key things to ask are:

1. Who is managing the note? Does it stay with the seller and they pay you or does money come from the servicer?

2. What happens if the borrower defaults?

3. Who is responsible for costs if it goes into default?

4. What are your remedies if the seller defaults with you?

5. Is your payment in priority position over the seller? ie. if it forecloses and the UPB was $20k and you bought $15k of it, and it sells for $12k, do you get all $12k or how is that split?

Make sure the contract includes the collateral for the note you are buying a partial on.as well as a payment/amortization schedule. That way if you bought 60 payments and the borrower paid it off on month 20, its crystal clear what your payment is.

I have seen one company on facebook pull assets from other peoples facebook page and repost them as their own. They also use oncarrot to post them as well. 

Few More regarding those on Facebook:

1. Company has no pictures or the person does not give their name.

2. They put a posting on Facebook "I have nationwide notes available for sale".  - Yes they do but they are not theirs. They are doing an email grab to get people to put in their email address. 

@Ahmad H. - Is the note in his personal name or his business? If its in his name it still may be considered a residential note unless the note specifically states its a commercial note.

Reason I ask is in NY the cost to foreclose and the time it takes on a residential property can be years if the borrower fights it (and cost a hell of a lot of $).

New York is probably considered the worst state to do a foreclosure in and many investors will not even buy in New York. That will limit who you can sell it too as well.

@Sean Morrisey - I would recommend against starting a fund right out of the gate. The cost to put one together is not cheap (10-20k) and if you do not have a deep and extensive background in notes raising the capital will be more difficult to do. In my discussions with people who have been in this business a while they recommend doing $1M in deals before starting a fund. 

@Jordan Blackwell - Thanks for the shout out

Along with what is noted above, there is a DMV Note Closers Group which did a presentation on this which included a lot of the names chad noted above along with a few others.

@Bob Malecki

Can you post the dates and location again for everyone as many newer investors may not be familiar with what papersource is

@Ned Carey is correct and is regarded as one of the most knowledgable in this area. I reviewed tax liens a few years ago and have found the competition to be very stiff. Is it still that way?

@Jason Hirko - sending you a PM as I am a buyer