All Forum Posts by: Joshua Andrews

Somehow I missed that part. Thanks Wayne!

Josh

Do we have a list of states this applies to?

Thanks Blair!

Josh

I am curious if anyone has a resource or copy of an example partial purchase agreement? I have not done one before and am looking for template. Thanks!

Josh

Mike hit the nail on the head. What he referred to is what I am doing currently. If possible invest both principal and interest back into more notes. At a later time when the "snowball" is big enough take interest distributions and enjoy!

Josh

@Gabe K. Msg me privately and I would be happy to share my experience and thoughts regarding these types of notes specifically. Thanks!

Josh

I echo the questions and thoughts of Mike Carr. Much like him I have been seeking a way to scale up my business with performing notes.

My initial thinking was along the lines of giving the investor a fixed yield and me pocketing the difference in payment each month. Essentially I would own a partial if my thinking is correct. In my contract with the investor I would handle foreclosure and legal fees should the borrower default, but would recover them upon resolution of the default, be it foreclosure, sale or just a workout where we have a resolution. Fees associated with these items do not worry me, as I have dealt with them before and have the resources to handle them. Due diligence would also be handled by me, as this is a critical part of the transaction prior to purchase. In fact I would not want to be a part of any purchase that has not undergone careful due diligence.

I would be interested to hear how others are actively using other peoples money to purchase performing notes.

Rick, could you elaborate on the "note for a note" idea? I am not sure I fully understand how it works or value is generated.

Josh

Hi Curt,

That's a great point. Financial planners are required to take continuing education credits every 2 or 3 years to keep their license. Any person or company can get registered to offer these credits. I have a similar situation with Architects in another line of work I'm in, where we go in and offer them a short 45 minute class which counts towards their AIA credits. They love it, we are offering value (education credits which they are required to take), and get to introduce ourselves in a non salesy manner and establish relationships. It's cheap and easy to do.

Not sure how I would compensate the financial planner, but that part would be a must if they referred a client. I am also not sure what laws fall into play here. That's why I posted on BP, to see if anyone else had feedback or experience with this.

Thanks for your feedback!

Josh

I'm curious if any note investors have spent the time cultivating relationships with financial planners or advisers in order to gain access to their pool of clients? This would be for investing in notes. To me this would seem like a reasonable way to gain access to a large number of people, mostly small time IRA type investors. Thoughts or feedback? All are welcomed! Thanks.

Josh

Curt,

I can put you in touch with a company that handles origination in all states with licensed LMO's. Their specialty is owner originated loans compliant with Dodd Frank regulations (or at least how we understand them so far). However, I don't know what their costs are, that is something you would have to negotiate with them. In my opinion with the effort that is expended by an LMO the 1500 is not a horrible deal. They have a lot on the line when they originate in this envornment. This is also a fee the borrower should be paying for anyway. 

Msg me and I will put you in touch.

Josh