All Forum Posts by: Gary Dezoysa

I almost gave up on this but then looked into a foreign holding company. 1 option is the UK as the company is relatively cheap to setup and maintain. Another option is the Seychelles though just writing it gives an uneasy feeling. 

Do creditors ever actively seek out foreign assets? In my case I have 4 judgements ranging from 15 to 30k USD in value. Maybe the 30k one is enough to do foreign company searches, I'm not sure. 

Hi guys,

I had a business that went under with heavy debts, some of them personal. I was unable to go the bankruptcy route and now have judgments against me from creditors. 

If/when I rebuild financially I was wondering if this precludes me from note buying. Any assets that appear in the public record are lien targets. So hard real estate is probably out (Maybe using trusts for real estate would be a workaround?)

As for note buying. Will I be listed anywhere as an "owner" of a note? And if so, anyone know if judgments are attachable to real estate notes? 

Thanks

Hi all,

Working backwards from an initial goal of $300 per month, $3,600 per year, I would need $18,000 in starting capital if my average return is 20% per year from NPNs.

Sounds doable in terms of saving, but my concern is that if I buy 2 or 3 notes, probably NPN junion liens, each one will still be too small (really bad quality or bad collateral in a dangerous area).

I would like to ask you guys what a realistic floor amount would be to budget per note in a cheap, midwestern C class area where homeowner quality is still acceptable for note investment. 

I am thinking it would be around $10,000 and I would want another $5,000 in reserve, these are just guesses though. If this is in the ballpark I'll change my thinking on starting with multiple notes even if the starting risk is higher that way.

PS: I'm willing to put in the time on junior liens. My main concern is covering my downside especially on the initial batch, so that I can get rolling.

@Cliff Durrett, thanks for the tips! Are you buying notes that you can see in person? If you buy some non-local notes as well, what would you consider proper due diligence in those cases?

I think I will revise my initial target down to $500 a month. A pittance to the experienced guys, I know. For me even that side income would be near life changing.

Thank you for bringing up this point Jay, I did not consider it.

Good to know Bob. I have been looking into non-performing notes and while higher risk, I believe they may be a better start. Though I'll need more starting capital to get going.

Hi Shiloh, about 10 hours a week is my target. And as mentioned, going through foreclosure would be a non-preferred route for me due to the expense and hassle, though I'll probably price everything assuming that last option scenario. I hope to do as many loan modifications as the homeowners will accept.

Hi all, if I want to get into the small world of NPN investing, do you think I'm at a disadvantage living in Thailand? My family is split between here and the US so I am mostly up during US EST hours. My main concern is potential trust issues, and also perhaps legal hurdles (with wet signatures, etc. I do have an address in the US though)

Thanks

Good to know Edward, that was the piece I was missing then. I'll put more focus into that; thanks!

Hi guys,

I'm looking into non-local note investing as a means of achieving a 2nd income. $1,000 a month would be great and pay much of my monthly expenses, so that is my first goal.

I listened to Dave's book in the car but haven't had the time to fully process the information. What I've loosely gathered is below, can anyone tell me if these figures are in the ballpark?

-- I start with $5,000 and spend a few weeks looking for note brokers.

-- Invest into a $5k note yielding 15% per year, or about $750 per year, $60 per month.

-- Look for opportunities to recapitalize, either by raising private money (unlikely this early on) or "collateral assignment" loans to borrow at, maybe 7.5% while re-lending at 15%.

-- I keep doing this until I go from $60 a month to $830 a month, which would take 28 investments assuming they were all $5k notes yielding net 7.5%. If I acquire 1 new note every 3 months, it will take 7 years to hit my initial target.

I know this doesn't include notes that turn NPN, I'll have to read more about that. Are the numbers and timeframe roughly in line though?

Thanks

Hey guys,

Reading about performing notes has fascinated me; seems like such a superior investment compared to stocks/bonds in terms of variance and ROI.

What else is out there that is relatively passive? Can be REI or non-REI related. Anywhere on the risk/reward spectrum is fine, I'd just like my eyes open to the options for now :)