All Forum Posts by: Alecia Bolton

 @Steve Schmidt 

The FB groups I'm in pay attention to are:

JKP Real Estate Note Investing - run by the great folks at JKP Holdings.  I know there are partial buyers in this group.

Note & Mortgage Investing Made Simple - Matt Kelley is the admin, he's a lawyer out of CA

Creating Wealth Simplified through Note Investing - This is Chris Seveney's group

Note Investing Tools Members - This is run by Tracey Z and Fred Rewey...you might need to be in their network to join. 

There are others, but these ones are definitely info/networking first.

My honest advice is if you haven't sold a note, let alone a partial, selling the entire thing here are on something like Paperstac might be your best option.  Notes are nuanced, and partials more so, and you can really mess things up if you don't know what you're doing.  Several folks on this thread and in those FB groups would be happy to give you advice.

There's honestly not a lot of places that specifically cater to partials.  Ty listed a lot of resources for selling whole notes.  I'm not sure if Paperstac does partials.

I sell and buy partials, and it's done through networking, primarily.  There are a few groups on FB that would be good places to join where partials are mentioned.

Have you sold a partial before?  If not, do you know how you would do it as there are multiple ways, some of which are better for investors you don't already have a relationship with.  Do you know what paperwork you need? 

Partials aren't usually listed anywhere.  It's all about who you know, and that's because you're entering a relationship with the partial seller.  So you'll want to develop that relationship.

I know there's people here who sell partials (myself included), and there are several groups on FB that are note investing groups and have people who buy and sell partials.

I've used Trello, Clickup, and spreadsheets/google drive.  I use Clickup now, and am planning on fleshing out something that can be shared.  I know of some folks who has used Clickup very similar to how Adam Adams used Pipedrive.

AAPL - American Association of Private Lenders

NPLA -  National Private Lenders Association

TNDDA - The National Due Diligence Alliance

IMN - Information Management Network (they have a ton of topics, not just notes)

ADISA - Alternatives & Direct Investment Securities Association

Chris and I will run into each other a couple times.

IMN in September

Five Star

Either Note Expo or TNDDA

NAPL (maybe)

AAPL

My take on the article does not have anything to do with the tax sales, but how the IL code is written to allow the tax sale purchase to claim 'sale-in-error'.  And that because of this statue, people are using it as a loophole to get money + interest back from the government for things like the assessor property details not matching the house exactly.  If the interest rates on that go up as exponentially as they do, then it's totally a business model to buy at tax sale, hold it, then find minor mis-matches that allow them to trigger the statute.   

I think this is one of those situations where the intent of the statue does not match the reality of the statute.  And local communities are paying for it.  I agree with Bruce that the process itself is pretty solid and a great idea.

I've invested in tax deeds and notes.  My first note was actually seller financing a property I bought at tax deed.

I agree with what Chris said.  Tax deeds and liens involve a lot of competition, and in my case, by the time the auction came up, most of the properties had been removed, so I spent a lot of time researching stuff that had disappeared.

You can have that problem with notes too, but it's different.  If you're buying off a platform (e.g. Paperstac), then you might have some competition, but there's no deadline that people are bidding against.  If you're looking at tapes from other investors/hedge funds, there are deadlines, but the number of people bidding and having the same criteria as you is much lower.  And there's typically an actual person on the other side you can talk to, it's not all automated.

There are also a lot more notes than there are tax deeds/liens.  And more flexibility depending on your investment style.  I also agree with Chris that if you're investing in non-performing, you will not see returns for at least a year, typically longer in the current environment (courts are still catching up from the pandemic lockdowns).

If you are a small note investor...less than 10 notes, you can get away with not investing in a lot of systems/tools.  I did most of my management on Trello (free) and worked directly with vendors (lawyers, property preservation, etc).  As you scale, you'll want to look into other tools.

You also want to make sure you get some education with notes.  I do not advocate signing up for an expensive program, but do weekend classes, attend conferences, do some reading.  You don't want to jump into a non-performing note somewhere and not have some background in what to do.

It is not atypical.  It's to protect the back end investment of the person you're buying the partial from.  Otherwise, you could foreclose and decide you only cared to collect what is owed to you with the partial.  If the note is $100k, and you bought $25k, you could settle for $30k and they'd be out whatever the difference.

Not saying you'd do that, but I've heard other people take pride in that as a strategy.
 

You're welcome!  

Typically, yes, but it depends.  Most investors are wanting to get a 12%+ return, and if the note rate is less than that, they'll look for a discount.  Also how it was originated is important and if it's currently being self-serviced or serviced by a 3rd party.  I've paid par for performing notes (par is the unpaid balance), but I've also had notes at a 20% discount.  So it's hard to say without knowing all the details.