All Forum Posts by: Dave Van Horn

Hi @John Corey

The conversation here on the BP thread was really in reference to a "super early bird" price that has come and gone. The current pricing you're seeing on the site is good until the end of June.

Also all tickets include the recording! 

It says that at the bottom of each ticket description that the recordings are included above the 'purchase now' button but we just updated to make it more clear at the top. 

Hope you can make it! 

Thanks @Kenneth Hynes, look forward to seeing you there!

It's going to be a great event, we plan on announcing more exciting developments soon!

Thanks for the kind words everybody!

And good question @Don Konipol. It's tough to make exact predictions without knowing the extent of a supposed recession and how long it lasts, but I guess I could talk about what happened in the past and what we learned.

As many of you know, note values are in direct correlation to Real Estate values. And in the last market crash of '08 we saw our portfolio take a bit of a hit at the outset where we definitely lost some equity. But what we learned from that event was that equity doesn't necessarily dictate outcome when modifying notes because of what's often referred to as "emotional equity" (i.e. people often want to stay in their home because of an emotional attachment to the home).

It's similar to a rental property you purchased and rented out prior to a downturn. So to keep it simple, say you buy a $100K property and it's a $1,000/a month rent, and the property drops to say $80K in value, it only becomes a problem if you're forced to sell it, and keep in mind the rent usually isn't changing much. But, on the other side of that is, if I can buy that $100K house for $80K or less...I wouldn't mind that :)

So when we're in a down market mortgage assets can be much cheaper to purchase with much more defaulted product in the marketplace. And we also learned that a high tide raises all ships, meaning those no equity notes we bought at a discount performed almost just as well as our high equity notes in terms of modifications, and as the equity later came back into the marketplace, the notes were worth considerably more money.

Now you may say "but what about jobs and the economy? Wouldn't that affect the amount received from loan modifications?" Sure, but the lower cost of notes gives us the opportunity to share bigger discounts with the borrowers while spreading our risk around more. So a loss of equity is really only an issue if you're forced to liquidate the portfolio when the market is down.

When I look back at some of the low cost loans we bought in California and New York City, I only wish we bought more! The good news is we have more capital now than ever and we're a much more robust organization today than we were over a decade ago.

Also keep in mind, the Real Estate market isn't as volatile and fast moving as the stock market. It won't necessarily happen over night and it's something we're definitely keeping an eye on and address with our forecasting and strategic planning sessions.

Cost of capital

@Anthony Perpepaj

That's a good question. I'm not aware of any at the moment happening in NYC specifically. I do know there is the Distressed Mortgage and Private Lending Expo in NJ that is usually held once a year in the fall, that may be worth looking into.

I'd suggest also posing this question to the Note Forums here on BP to see if others in the note community know of anything in your area.

Thanks for the tag @Tarl Yarber!

I'm with @J Scott, I don't get to the Pacific Northwest often enough so I'm very excited to participate in this year's event! Always love meeting new investors and I have a feeling I'll be seeing a lot of friends and old faces in the speaker lineup as well as among attendees, so looking forward to connecting with everyone.

And of course, I can't wait to introduce the PNW to note investing strategies I've come to use over my career and to show everyone how notes can boost your real estate business, maximize leverage, and help investors build wealth!

Just got back from Denver late last night, and just want to say another job well done by @Joe Fairless, @Grant Rothenburger, @Theo Hicks, and the rest of the team!

Got the chance to connect with friends and colleagues from across the country who are always doing interesting things. Picked up a ton of new strategies and ideas from speakers like Trevor McGregor, @Brandon Turner, @Kathy Fettke, and plenty of gems from @Chris Clothier and other folks on the Path to a Billion panel, just to name a few :)

Thanks for the mention @John Fortes!

A lot of great info above.

It's really a give or take on your time commitment, skill-set & risk exposure (especially for NPN) as well as cost of capital. Something to consider with buying individual notes is, you don't really know what your return is going to be until you finally exit. Like if you get cashed out early, that would really grow your return and it's tough to predict that.

We're also in an upmarket so that could be working against you a bit on the note buying side since prices are up and there's generally more competition with fewer product. Doesn't mean it's not worth doing but something to think about. That's also the reason why many people go into a fund (along with the passive benefits) since it may pay a higher return for the time being. 

I personally do both individual note buying (only performing) and invest in note funds.

Congrats @J. Martin on another awesome event! Glad I could be a small part of it :)

Although I'm stuck in the Chicago airport right now lol (delayed flight!), I was happy to make the trip, just to reconnect with old friends and investors, and meet plenty of new ones as well. 

@Sergey Tkachev's right, definitely felt like a reunion of old friends, but also a meeting of minds. Feel like the SF Bay Summit helped get 2019 off to a great start!

Another book!

Is there anything @J Scott can't do! :)