All Forum Posts by: Collin Kautz

I have a NPN and I wanted to know when is the right time to move on? Under what circumstances do you as an investor say, "Well my options are exhausted and this not is not worth any more of my time and money?" I know this is a unique issue to the note and the individual, so I'll add a few details and see if there are any suggestions as to where I should go from here.

To begin, I'm a note rookie, and I accept all the critical feedback that comes with it  : )   I now know that I was under capitalized when pursuing this note.  Foreclosure, in my mind, was not an option because I didn't want to pay the price and also, the home has a 1st lien that is 50k more than the value of the home, so I didn't see how foreclosing from 2nd position would put me in a better place anyway.

Also, I have not been able to reach the homeowner through my own means of internet research, letter campaign to her two addresses, or by sending out an agent to the home (which is vacant).  

Now, I am considering using my servicer, FCI, to pursue collection on the note because I am not sure what I can do to get any closer to a deal.

Please correct me if I am wrong in assuming I am out of options! However, in the pursuit of a payoff from a NPN, I ask again, at what point do you move on?

Hey BP community,

I am looking for a solution to my friend's mortgage problem.

The story: She is 77 years old, has paid her mortgage payment diligently and on time for the last 25 years. She has 16 years left on her loan and she missed one payment back in Nov 2013. The reason she missed the payment was due to a medical bill she needed to pay. Medical bill is paid but mortgage payment has grown worse.

Now, her lender is making her life hell. She was told she couldn't get a loan modification after being on a forbearance plan for the last 5 months. She is now delinquent 4 months payments which she will not be able to bring current now that she is at the end of the forbearance plan. The options are that she bring the loan current or the lender grants a loan mod. Her only income is her social security and a pension fund. She's being denied a loan modification because her payment is "affordable" compared to her income.

Possible solutions: Her mortgage balance is roughly 125k and her home is worth about 270k. Her monthly payment is $900 and current interest rate is 5.5%. She is bound and determined to stay in her home and willing to explore creative solutions.

I've run some numbers using a purchase price of 130k and a sale price of 260k. If she were to keep making her 900 payment in perpetuity until she passes the only variable would be how long she would be living in her home.

Here are the results:

5 year IRR: 18.02%

10 year IRR: 12.60%

20 year IRR: 9.78%

I've also considered a subject-to transfer, but I need to figure out how to keep her in her home with that option.

I appreciate any and all suggestions and please ask more questions so I can fill in the gaps. Will social media help out our homeowner? I'm ready and willing to find out!

Thank you bp community,

Collin

I would like to know how to appropriately post a note investment deal on the website so I can connect with anyone interested?

I'm happy to discuss the deal with anyone interested, but I want to make sure I'm giving it the right exposure on the website and not missing and important details or posting to the wrong section.

Thank you,

Collin

I am curious at what price point this becomes a deal for the investor? Does 350k work? Does 300k make it a deal?

Hello BP,

I'd like to know more about note brokering. Where do I look? Who do I talk to?

Specific questions:

Is it similar to wholesaling real estate?

What requirements / licenses would one need to be a note broker?

Are there any lines of work that lead to being a note broker similar to a real estate agent becoming a broker?

Thanks for your help and feedback!

Hey Brett! I signed up for PPR's NPN course and have been working my starter note. The feedback and material I've been given from PPR's program has helped me tremendously with my questions (there have been a ton of questions!) I had been looking for a place to start learning note investing and mentors to teach me for free but I realized to get going I need to invest in myself. So far, all I had done was borrow books and grab all the free information I could, but I decided I wanted to accelerate my learning and get access to a skilled group of note investors. So far, I've been very pleased with what I've gained from the course. Let me know if I can help or if you want to discuss notes! Good luck

Hello Oregonians! My wife and I recently moved to OR from San Deigo, CA and are looking to purchase our first home and investment property like a duplex or triplex in the Portland area. I'd love to meet up with anyone who wants to talk notes or multifamily investing! Good luck in your investments!

Thank you for the responses!

I guess when I first posed the questions I was assuming the note buying business needed a few key members just as investing in physical property does. People such as a good contractor, property manager, real estate agent, and so on but I appreciate the information I have been given.

The more I learn about notes the more I love learning about them!

To the active note investors out there:

1) Who would you consider essential to your note investing team? (Other than yourself!)

2) Follow up question - Why?

Brandon Turner That is actually a great question! I am very interested in note investing because I love the financial and risk analysis that is involved.

After taking finance courses in college I became intrigued by the concept of time value of money and determining value on the risk of an investment and note investing speaks my language.

I also like to begin with the end in mind. I've been married a grand total 5 months as of today (married Oct 27th for those who need a quick answer) and since then I've been planning for our retirement!

I've recently spoken to @Jeff Brown and @David Shafer (my heroes!) about retirement planning but what I really need now is a note investing buddy to help me learn this business so I can start building that retirement fund!

Next step: Read more! AND find myself a friend in the note business!