All Forum Posts by: Brady Durr

Books are a great start but you need to pay for training and pay more for mentoring.  Check out @Scott Carson course Note buying for dummies.  You need to a big overview of this industry.  Some people enjoy Eddie Speed and the note school program.  Both of these gentlemen are icons.  @1ScottCarson appeals to my entrepreneurial DIY spirit.  Do what this article says to speed the learning process 10 step to be an industry expert.

Congratulations on the opportunity to have a life-long investor. JV is usually a 50/50 profit split with both of you actively working the deal. If you are doing all the work consider interest only loan at 8-12% paid quarterly for a specific period of time. They can fund this from and IRA for tax free profits. Is your LLC still recognized by the state? Use your lawyer contacts for deal and contract structure. You want to do this right and hurt this relationship.

What happens when you foreclose and decide to be a land lord and you get sued?  What tax strategies do you loose without an entity?

I agree with @Jason Carter.  If you get time run an loan amortization table for $230K @6% @360 months and look at the principle and interest payment you could get each month by being the lien lord.  Something to thing about as you look for streams of passive income in the future.

You can learn so much about seller financing from @Dawn Rickabaugh the note queen Dawn Rickabaugh on vimeo.  Ever turn in a paper that you put in little effort and got an okay grade. Then no anther paper you put your heart and soul into it and complied with the MLA format.  Notes are similar.  Notes generated from a RMLO are like an A+ grade paper because if complies with all the rules, laws of the land and it vets the borrower.  Paper from your attorney will work but it just does not have all the extra effort from a RLMO.  It maybe worth the added expense, then again it may not.

In the note space, equity is a huge factor in aligning your due diligence with about 7 different exit strategies.  For example, If the home owner has equity they may fight to delay foreclosure on a first lien.  If it is a second lien with a performing first you got them right were you want them.  Please consider signing up with @Scott Carson @weclosenotes Virtual Note Buying For Dummies This is a market you need to specialized training and mentor-ship.  

"Never invest in a business you can't understand." Warren Buffet. Assuming that's a performing $35K note you have 80% chance it will pay off early. Your ROI will drop and the mail box money will stop. Did they mention that?

ROI on notes require 1 of 2 things.

1. The borrower pays each and every month per the contract

2. After you foreclose someone wants to pay more for the house than you paid for the note.

No monthly payment or a home worthy of a dozer wrecks ROI. There are not many of other ways to get ROI in notes. Oh yea, deduct your expenses such as loan serving fees, BPO/CMA, special servicers fees, O&E reports, attorney fees, code enforcement liens, forced placed insurance, unpaid taxes, repairs, then you get ROI.

Consider these steps to being a note investor

1. Go to weclosenotes.com and sign up for Scott Carson virtual note buying for dummies. You will also learn what not to waste time on such RMLO certifications.

2. Write a business plan if for nothing else to ensure you want to move to step 3.

3. To make a living with this you need learn how to run a legit business. Check out your local SCORE chapter or Small Business Admin office for free training/mentorship on this topic. You will never get a business loan to buy bad debt.

4. Get your plan and priorities set so you stay focused on your mission.

5. Follow every note investor and note educator you can find on meet-up, facebook, linked, active rain, etc. and listen to them.

6. Devote every spare moment to digesting webinars past and present on youtube and vimeo.

7. To master this craft you need training, mentorship and 10,000 hours.

8. To get volume you need training, mentorship and 10,000 hours on marketing.

Watching hundreds of hours of free video from note educators such as Speed, Carson, Malecki, the note queen, Note MBA, will speed up the learning curve.

You absolutely will need a source of income during this time.

@Bill Gulley What hope do new inexperience people have of acquiring JV's to procure NPN and NPL where the collateral is real estate? If a new firm that only buys NPN or NPL could provide a google doc link with all the answers to your no-go items would you consider JV? For newbies is it naive to believe that goods deal find investors? I really enjoyed your post and understand the wisdom of having these data points at the ready.