All Forum Posts by: Demjan Van Der Kach

@Bob Malecki

I thought any entity including trusts does not protect from the clause...

Is it possible to make the bank dropping the clause? 

Can a lender drop it while getting a house "subject to", for example? What would be the documentation?

Is it possible at all???

Thank you

Hello all!

I am interested to know your thoughts on due diligence process for performing senior notes and things you wish would be there to look at or easier to find out or deal with. What are the consistent time-eaters in your due diligence? What are the regulatory limitations? What are typical hassles that slow things down badly even though you have a proven good systemic approach to your due diligence?

For example - and please bring up anything -  borrower credit history. I am kind of divided in how to approach the issue considering the privacy act. Is it legal to get a borrower's credit history while doing due diligence? 

Great discussion. Thank you all. It helps me in my decision making. Regarding leverage- what are the ways for the funds - my guess performing notes funds and NPN funds are different - to leverage themselves? What are the regulatory restrictions on leverage? The second issue- how are these funds tax-efficient? Any long term capital gains besides the interest. How are these funds taxed internally? Any tax loopholes for the funds to use? I know - it's probably a big topic by itself.... Sandy Uhlmann sounds like PPR does nice things: principal guaranty and "gifts"... my impression that there is something about them you love... :) however my gut feeling - without complete understanding of their risks, structure, leverage, performance in a bad market it is quite a gamble for NPN... I will definitely try to carefully read their guaranty.

Great info. Thank you Bob. I always would like to understand how leveraged the funds are. What is the industry standards regarding leverage? What are the ways to get the leverage - my questions is more specific for the note funds. The other question I have where the funds keep their cash and how much cash? Is the cash somehow insured? In what securities? I am not a financial person - sorry if my questions don't quite make sense to some... say the fund keeps cash in bank and bank collapses... in this case I would be much comfortable if the "cash" would be in short-term treasuries. Can the risk of note funds could be measured? Are there any benchmarks?

@John Arendsen, @Jeffrey H., @Andriy Boychuk Thank you all very much!

Hello everybody, I am strongly considering part of my SDIRA to be in Notes funds. I am looking for high quality players in the industry with great historical record. Let's talk about good and "not so good" funds! I would appreciate any leads/opinions. I am new to the Notes and my impression is - the notes funds are very difficult to understand in terms of historical risks, their transparency. there is no much of the SEC regulation/reporting requirements like, say, in mutual funds. Are there any financial analysis stats out there, rankings et cetera? Are these funds legit, here to stay??? Or is this Notes fund market is short- lived hype created by recent mortgage crisis and huge inventory?

I am reading the book now and it is lots of fun. I have no experience in mobile homes whatsoever and really wonder: - Are there still Lonnie deals out there? - when he talks about buying single wides for $2,000-3,000 - are we taking modern era or it was 20 years ago???:). Are these deals realistic now? - is sellers financing on mobile homes dead because of new regulation? SAFE act/Dodd Frank.

Brian Gibbons Is it applied for "de minimis" exemption, say under 3 deals?