All Forum Posts by: Ann Howell

Thanks everyone. I figured the LLC would be valuable and this confirmed it!

Hi all - I am interested in buying a notes for myself with my own money in order to hold them for cash flow.  I will likely start with first lien, performing notes.  Over time, I might tackle non-performing firsts or seconds.  I would use a servicer for the notes.

Should I form an LLC for this business? Is there any benefit to doing it through an LLC versus holding notes in my personal name?

Bob - Thanks so much for the referral to your site.  The tools you have there are tremendously helpful.  I was in the process of compiling a lot of that information for myself.  You saved me a lot of time!

Thanks Wayne and Jason.  You have helped confirm that FCI is probably a good place to start.  FCI seems to have more detailed data available.  They also have the diamond program, so you know what loans they are already servicing.

 Thanks, Bob.  FCI has appealed to me, since they also service the loan.  Plus they make it easy to arrange a title search and BPO.  

I'm working on learning about notes.  I hope to start investing with performing, first liens to continue learning and then eventually branch out into seconds and non-performing.  I've been studyIng and reading and looking at sites.  Sites like FCI and Watermark Exchange have notes for sale, but the data seems very questionable. For example, WE posted notes today that say they originated in 1969.  There is also a lot of missing data.  Some of the loans listed as performing showed the last payment being 6 months ago. Etc...

I understand that things like title and BPO need to be verified independently.  But if the basic listing data is so skewed, how do you even choose which ones to look at?  Is this typical of these sites?  Is the data that comes through on a tape directly from a bank more accurate?  Is there a trick to confirming the basic data, so you can decide whether to pay of title searches and a BPO?

I would be interested in reading more about the Finance side of this type of investing.  Can you recommend any specific books or MBA study materials of some kind?

I just finished Performance Anxiety by Gordon Moss.  I would highly recommend it.  He writes very clearly and gives specific advice and information.  He focuses on non-performing seconds, but the information can be generalized to other scenarios.

I had not come across the Keyhole Academy.  I will check it out!  I watched some of the video at realestateandnoteinvesting.com, but it focuses on collecting from non-performing second position liens.  That site and the comments here have been very helpful in clarifying my question.  Every piece of information I get is making the puzzle more understandable.

Thanks to all.  This has been really helpful.  I would definately use an attorney before venturing into the notes world.  However, I will only invest in opportunities that I understand, so I am trying to educate myself enough to know what questions to ask an attorney.  It is challenging to find credible information, books or educational materials about buying notes.  Any recommendations?