All Forum Posts by: Joshua Andrews

Thank you both for your reply. As Mike mentioned, I am primarily concerned with the language of the note and mortgage, and making sure I have legal remedy should a default occur. However I also like the idea of having an attorney review allonges and record the note.

This is basically what I'm looking for :)

Josh

Thank you for the feedback. I believe I have answered my own question after some amount of  thinking. Possibly I should think a little deeper before posting :)

- Josh

I know there has been very detailed posts in the past regarding the differences between Yield, IRR and how to calculate them. For what I am doing however, I am a little confused on which metric I should refer to for accurate results. I am using a compound interest calculator to project future cash flows based on discounted note's I am buying.

A compound interest calculator naturally has an input field for "interest rate". My question is this: Would it be prudent to enter the "Yield" I am getting from my note, or the cumulative "IRR" calculation which is more detailed and covers the entire note from beginning to end? Note that these two calculations are rarely the same.

Which is a more accurate reflection of "interest rate" in this case?

I am simply trying to project future cash flows based on my note purchases. My thinking is Yield is the correct answer because it is the actual amount of cash I'm receiving from each payment. I'd like to hear more advanced investor feedback on what is the best way to think of this accurately.

Your thoughts?

- Josh

I will be buying owner originated notes in several states in the next few weeks. These are secured by owner occupied primary residences.

I would like to have a competent attorney review the note documents prior to my purchasing. Has anyone used a service that can recommend attorneys? Do servicing companies such as FCI provide a service like this?

Thanks!

- Josh

The first place I would suggest looking is the borrowers credit report. Nine times out of ten, the first mortgage is listed there. You can connect the dots from there on how to find/get update on first mortgage payment status.

In the cases where the 1st does not show on the credit report, I am unaware of any other methods to find the status/current balance, short of asking the borrower.

Hope that helps.

- Josh

Scott,

Thank you for the concise reply. Your point of view makes sense, and one I was leaning towards but not knowing if correct. Appreciate the reply!

Josh

Here are a couple questions that come to mind after reading this post.

1. How does this all apply to guys like myself who don't want to originate the loans, but simply buy a discounted note that was originated by an owner/seller?

2. Also, is anyone aware if these new laws are in effect retroactive to older loans, or just new loans being originated moving forward?

3. Does the new legislation apply to an owner financed loan I'm buying that was originated 5 years ago?

Interested in hearing your collective thoughts on this.

- Josh

I own a 2nd mortgage and would like to be listed as an additional loss payee on the insurance for the property. What is the best way to do this? I'm thinking just contact the insurance company and request to be added?

Appreciate thoughts or advice.

Josh

Appreciate the feedback guys. You've given me a lot to think about. It's not something I'm rushing into, but rather looking at options and the correct way to do this.

Thanks!

Josh

This post is for you more seasoned transaction coordinators out there. Any feedback is appreciated!

I'm a newer note investor, picking up a few deals (performing and non performing). I have started sharing what I'm doing with friends/family business acquaintances and they have expressed interest in getting involved with me. They mostly have small amounts to invest, starting at about 10 - 30k.

After speaking with a mentor and someone I highly respect, I will at some point be using collateral assignments to basically borrow money from these individuals. However, I have more interest from these folks than I have assets to collateralize, and I can see this increasing in the future.

My Question:

Is there a method of utilizing OPM you've seen that might be helpful in this situation, specifically with notes?

My goal is to give these folks a fair return, while giving me some form of ownership on the notes purchased, with as little recourse as possible. Any thoughts on something like this?

- Josh