All Forum Posts by: Arthur Hunt

Hey Zac, 

I was following the discussion and I was wondering that none mentioned the notes business. So, let me explain how it works. You buy non-performing loans at a significant discount, once you re-perform these loans you will start making money. The big advantage of notes is that owning a loan usually results in an equal or greater cash flow or passive income with less liability than owning a rental property. Also keep in mind that once it note becomes performing the value of the note increases. Re-performing loans sell for about 65-70% of UPB and the market is very liquid.

I was following this conversation and I would like to add that I have been bought non performing notes and it worked out very well for me. The point in buying non performing notes is that you buy these notes at a significant discount, once you re-perform these loans the yields will be up to 20% - 25%.

I have been buying non performing notes occupied and it worked out very well for me. The most important thing is to make sure they are occupied and then re-perform the loan. Because you are buying these notes at a significant discount, once you re-perform these loans the yield is in the 20's%.

Susan I've purchased 2nds from Asset Ventures and DBI but that was more than 15 months ago. I used  to buy 1st liens from Granite and Kondaur. I found out that Madison Mgmt is not a seller they are a servicer. Over the past 2 years Watermark Exchange has been the only place with consistent product especially for 1st liens $100K and lower values. The Papersource conference is coming up soon in Las Vegas and you should attend if you want to meet buyers and sellers.