All Forum Posts by: Cody Cox

@Naveen Desai, there is one more level of access if you are the borrower. You should be able to see who the owner of the note is at that next level.

If your loan is a MERS loan, you can go tot he MERS lookup website:  https://www.mers-servicerid.org/sis/

Check www.IRALending.com for a source for non-recourse mortgage lending with your SDIRA. Matt is one of the best in the business

Sounds interesting. Thanks, 

I would add, that if you are a podcast person, NoteMBA is a great weekly podcast from two pros in the business. #NoteMBA

You should also look into a podcast called Exit the Rate Race with Andrew and Mike. Mike is a long term note investor that provides great content.

Cody

As I mentioned, be sure you learn all you can about notes. @Patrick Desjardins makes a good point. Before using others money you need some experience. Perhaps partnering your share with another. 

@Jason Eyerly Remember, it doesn't need to be your own money. There are plenty of other investors, IRA investors, etc. that have money that is sitting without gaining any returns. I work in the first mortgage realm, and have raised almost $2.00 million in joint venture funding for note acquisition. But what is really important, learn everything you can about note investing. There are several podcasts that provide great free content.

Ask yourself how you would be able to hold a full-time job and invest in real estate. Imagine the marketing, networking, negotiating, closing, funding, and managing investment properties, all while holding a full time job. 

Many people do that, but I'm not one of them. I too have a full time job, but I decided that investing in notes was a better opportunity for me. With note investing basically a business-to-business transaction, the time frame is greatly compressed for acquisition, and by buying right, there is room in the transaction to have others do the ground work for you. I can invest in notes from anywhere in the world as long as I have an internet connection. I never need to touch a property.

Redemption rights on a property going through a judicial foreclosure process are purchased directly from the title owner. The redemption rights are generally transferred through a bargain and sale deed. There would be two purposes in purchasing the redemption rights in advance of the auction: First, should you be the successful bidder at auction, then you have initiate your rehab in advance of any concern of waiting 180 days for the redemption rights to expire: you already have them. Second, if you are not the successful bidder, then there still COULD be opportunity to obtain the property from the successful bidder, which in most cases is the bank/lender. I bit risky of a strategy, as the bidder may just wait out the 180 days. 

Remember, as non-judicial foreclosures become more prevalent, there are no redemption rights on a non-judicial foreclosure. Be sure the method the property is going through to auction.

I'll through in my thoughts. From my perspective, I like investing in promissory notes secured by real estate. You become the bank. My model is to acquire non-performing notes at about $15,000 - $25,000, work to modify the loan in an attempt to keep the borrower in the house, then once the payments have seasoned, you can resell the note for a significant increase in value. Rinse and repeat. That way, you haven't tied up the entire $100k into one property, but perhaps 3 - 4. 

Note investing is not a new thing, but many investors don't understand them. I've been in the mortgage industry for over 33 years, so this method of investing works perfect for me, especially since I maintain a day job.