All Forum Posts by: David Currey

I am looking into purchasing a few NPN seconds with the intention of attempting to get them re-performing or offer a reduced payoff to settle. I will be looking for houses with the first lien current. I understand that foreclosure is a useful tool to get the borrower to surface and talk. I anticipate at a minimum sending out a "Demand Letter" or "Intent to Foreclose" Letter, but in the event that I need to actually go the entire foreclosure route, what states offer the least amount of time to foreclose?

I downloaded a .pdf from realty.trac that shows foreclosure laws and procedures by state. It appears that TX and GA are good states for a quick (2-3 months) resolution – others like NY take a long time (445 day process period) other states have a 365 day redemption period (talk about putting the funds on ice…). Are redemption periods applicable to seconds?

But I am sure that there are variables that don’t show up on a neat little chart that can trip me up. I will be starting off small with a small portfolio of around 3-4 notes to spread out my risk, but I don’t want to get stuck in a state that will tie up my funds for years.

If I was to buy a few NPN second notes in a few states with a performing first – where should I start looking?

What is your experience?

Thanks!

@Bill McCafferty

Thanks for sharing on BP!

I actually saw you on a PPR Q&A session that was recorded about a year ago with you and a few other investors.

From what I have seen David runs a solid operation at PPR, he is very active and open here on BP.

Could you elaborate some on your business model?

I am interested in putting together a fund for investing in NPN 2nds and would like to explore how a successful business model operates.

Do you have a PPM in place to talk to your investors?

What exactly do you mean by “Boarding a Loan”?

What happens if you end up with the house? (Does that happen often?)

Thanks for your help!

David

John, in my opinion you have identified a much greater big picture problem. Think about what is the outcome in 3 to 5 years – will the “buyer” ever get his own mortgage?

Are there ways to structure the Mortgage Assignment so that the buyer is forced to get his own loan? I am very hesitant to jump into this strategy without structuring an exit strategy for the seller to be free from his old mortgage on the house.

I am new to this, so what is obvious to you is not so to me. Could you elaborate on any effective strategies or ways to structure the assignment to entice or force the buyer to get his own mortgage after a set period of time?

Or is there really nothing you can do but cross your fingers and hope the seller doesn’t sue you for getting him into this mess if the buyer is not willing or able to go out and get his own loan?

Well I am new to this forum and kept hearing about "Yellow Letters" - now I understand that you are the guy and the handwritten letters are pure genius! I will definitely be following you on your My Marketing Diary! Keep up the good work!

I am in the process of growing my buyers list also. The suggestions that have been given to me are:

1. Go the Tax Foreclosure Sheriffs Sale at your local county courthouse (ours are on the first Tues of every month, 10am to 4pm) - see who is buying, introduce yourself - see what they are going to do with the house they just bought and ask if you could wholesale it for them.

2. Call "For Rent" properties in your local newspaper or Craigslist and talk to the owner. See if they would like to buy any more rental houses (like the house you are trying to wholesale).

3. Sit with your Real Estate agent and see what houses sold for cash in the past 90 days on the MLS - these are your cash investors.

4. Try a "Reverse Bandit Sign", they are typically just viewed as a seller trying to move a home, not a blight on the city:

HOME FOR SALE
4 BED 2 BATH
NO BANKS NEEDED
OWNER WILL FINANCE
(333) 444-5555

Place these at the entrances of sub-divisions to find buyer/tenants for a Lease Option / Subject-To / Mortgage Assignment type deal. (although here in Texas we can't do Lease Options and I am still debating on the long term ramifications of the Mortgage Assignment type deals).

Hope that helps!

Hi Michael, yes I did listen to your recording.

It was very professional, very clean and sanitary.

I agree with K Marie that a more local, "real" voice would be a bit more appealing as this recording is definitely generated.

You may consider adding some sort of hint at offering a "fair market value" as such a packaged, polished, non-human, voice mail, 1-800, national advertisement to me indicates that a real low ball price is to be expected. You may get a higher response rate if their is some hope that they will get a good price (although obviously you will start as low as possible).

Our city has also really cracked down on the bandit signs and will remove immediately and cite you if they can catch you.

Although I am considering the "Reverse Bandit Sign" to find buyers as it is not viewed as such a nuisance:

HOME FOR SALE
4 BED 2 BATH
NO BANKS NEEDED
OWNER WILL FINANCE
(333) 444-5555

These would be placed at the entrance of a local sub-division and used to find buyers for any "Subject To" or "Mortgage Assignment" type deals.

Craigslist is the best option to search for potential buyers and sellers in our market.

All the local "Penny Saver" advertisement newspapers are dead and the local paper classified section has more Lost Dog ads than real estate ads! Very pathetic.

I will begin posting in Craigslist soon as I am trying to learn my market and decide on my investment strategy - wholesaling seems to be a bit of finding a needle in a haystack (I refuse to go the bandit sign route as our city is psycho tough on any signs) and I am interested in the Mortgage Assignment programs.