All Forum Posts by: Dan Nguyen

@Dan Nguyen The deals for underwater NPNs come when you find an information differential on property value. If the seller thinks the property is worth $100k but your research shows it's worth $150k, he might accept your $75k offer, which is 75% ITV according to him instead of the 50% that you're actually getting it for.

Also, BRRR is much more difficult to accomplish with notes. Not may lenders out there willing to lend on notes.

Wow... that's super helpful. Thank you. So deals come from slippage. I had no idea.

I've seen tapes from hedge funds from my local REIA and often times with judicial states, they ask for 50-60% of UPB. Wasn't sure if small banks and CU will allow for the same discount range.

And question about your BRRR statement. Are you not able to buy using private money, foreclose it into your name and then refi with a traditional/portfolio loan after you stabilize?

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Thanks guys for the reply. This is really helpful.

https://www.distressedpro.com/...

The reason why I ask is this site above has all (maybe?) the resources available to get started with connecting with banks and credit unions.

I understand big banks won't work with one-off note buyers. Plus one statement he makes is this, "They’re not so big that a small sale won’t impact their books" with "REGIONAL AND COMMUNITY BANKS".

This leads me to believe the majority of the deals from smaller banks and credit unions won't be discounted enough to pay for holding and closing costs, foreclosure, rehab, etc... and still make a nice profit.

I just signed up for the software and training but I'm still in my 30 days to cancel.

It's not a large investment of capital but I'm more concerned about the time I'm going to waste trying to build relationships that won't provide results that align with my BRRR goals. I'd like to be at 75% of ARV or less all-all-all-in.

So it sounds like everyone here has had more success working with equity and hedge funds than small banks and credit unions.

I would love some guidance as to where to start finding these funds. Is there a similar software to distresspro's BankProspector's app for equity and hedge funds?

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Originally posted by @Doug Smith:

@Ali Langston I preach starting with a self-assessment of what you are great at and were you are deficient. What do you bring to the table (experience, contacts, money, etc). Once you can realistically do that, then surround yourself with really smart people who are experts in areas that you are deficient in. That's how I did it with my company. I had the contacts within the banks and hedge funds from spending 20 years in banking as an executive and I'm an expert in lending and loan collection, but I had little money to fund the operation and I didn't have investor contacts. I was stubborn and tried to do it all on my own. One of my old banking clients owns a National title company that does a huge about of closings in the investor world and he has tons of contacts. Once I joined forces with smart people with different skill sets, my business took off. many banks and hedge funds will sell one off to you if you know who to talk to and how to talk to them.

I was fortunate to have that banking background where my phone would ring several times per day with real estate investors asking me to buy my REO. If bankers only got one call per month, they might take the time to chat with them, but I used to get 5 or more per day. People also used to call the wrong people. They would call a branch manager. Although nice people, bank managers usually do not understand lending very well and don't have the authority to sell a note.

Here's another thing to thing about: Bank Asset Managers are given a portfolio of a finite amount of deals to work. The bank wants them to solve the problems and work through the portfolio to get them off the books by collecting them or selling them for an amount the bank would deem appropriate. Banks, however, are notorious for laying off good bankers once they no longer need them. Bank Asset Managers usually know this fact well, so you have to ask yourself "what is their incentive for solving the problems with the portfolio?" Why would they want to sell you their loans, whittle down their portfolio, and then be out of a job. It makes no sense, I know, but is the way banks work. The way to get into banks is to know someone, pure and simple.

Ali, I hope that helps a bit. I would find smart people to help you rather than trying to do it all yourself. Good luck, my friend!

This is extremely insightful. Thank you!

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Wow. I'm new to notes and this is just what I needed!

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Hello BP Friends!

My background is in REI but I'm brand spanking new to "Notes". My interest is in non-performing notes.

I'm hoping members who have a solid background in NPNs could help answer my question.

I'm looking for NPN-sellers who are willing to sell one-off notes. I wish to ideally buy to BRRR but I wouldn't be opposed to flips, getting them to perform or even selling them at auction.

So my question is... based on your experience, are hedge funds buying NPNs from the top 10-15 banks, re-selling them at a steeper discount than smaller banks and credit unions? Or are smaller banks and credit unions willing to let go of their NPNs for less than hedge funds?

I'm preparing to spend a heavy amount of time in establishing relationships with hedge funds and/or banks/credit unions and it would be of tremendous value to learn which are better to go after.

I completely understand things are all case-by-case but I'm just looking for a generalized answer if you had to pick one.

Much appreciated in advance.

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Wow. I'd love to learn more about what you do.

Also, may I ask what that typically translates to via cost per lead?

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I'm about to dump a hefty bit of money into online ads and I'm wondering what everyone's cost per lead is for ads spent on FB ads and Google Ads to get a benchmark.

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Bump

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Bump. I know this question is uncommon but if anybody knows of someone whom I can talk to about this if its possible.

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I understand the guidelines to qualify for delayed financing for permanent residents but I wanted to find out if there is a delayed financing program for foreign investors.

Is there someone I can talk to for such program?

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All Forum Posts by: Dan Nguyen

Dan Nguyen has started 13 posts and replied 25 times.

Post: How Steeply Discounted Are Non-Performing Notes from Banks/Unions

Post: How Steeply Discounted Are Non-Performing Notes from Banks/Unions

Post: How do I buy non performing notes

Post: Systems of a Note Investor

Post: How Steeply Discounted Are Non-Performing Notes from Banks/Unions

Post: Online FB & Google Ads Cost per lead

Post: Online FB & Google Ads Cost per lead

Post: Delayed financing for foreign investors

Post: Delayed financing for foreign investors

Post: Delayed financing for foreign investors