All Forum Posts by: Dan Deppen

I think inventory will increase in 2021, but it remains to be seen whether a go-to seller who puts out large tapes regularly will emerge.

I use them, but just for some performing notes in my SDIRA. All of my experiences with them have been positive and their people have been helpful when I needed something.

They aren't without risk, but you could buy some performing, cash-flowing, mortgage notes. As long as they continue to perform you wouldn't have to deal with landlording. 

I've only done senior loans. I started out with a JV, then bought a performing note to learn how the transactions worked. Did my initial deals all out of my IRA. I did join a mastermind and get a mentor. If I had it to do over I would have developed relationships with really experienced note investors sooner and tried to scale up faster.

I haven't had any crazy demands, but I've found that when a borrower is willing to do a cash for keys there is often a foundation, roof or furnace problem.

I like Paperstac because they escrow the funds and then the hard collateral goes to an auditor and everything gets verified before being released. It can save a lot of headaches as I've sometimes had to chase down sellers to ship the file or I've received files with things missing. 

I believe he meant the borrowers began paying extra principal each month. 

This is great when it happens because your yield to maturity really spikes, because whatever discount you purchased the loan at is being caputred a lot faster than if they just paid the normal P&I every month. 

This is an excellent question. I've been inconistent as well at times, but overall I just try to make sure that in a doomsday scenario I can fully recover my investment. So it's mostly price paid for the note plus expenses. My strategy is to limit my spend on FPI and not try to make a windfall if one burns down. Although I did have that happen recently.

Get a good attorney who understands this stuff like Jillian Sidoti.

This is a good reminder of the importance of staying on top of insurance. I recently had one burn down myself. It wasn't an REO, the borrower had their own insurance in this case so I didn't need FPI.