All Forum Posts by: James Holmes

@Odie Ayaga also I apologize for the formatting, I guess using the app to respond makes it a bit weird haha.

@Odie Ayaga I see.. That makes sense! I never thought to think about licensing. Do you mind me asking where you go to look for deals? The standard FCI exchange, or somewhere else? Thanks for the help! V/r JT Holmes

@Odie Ayaga ah ok, that definitely makes sense! Do you mind me asking if there any states you tend to stay away from for other reasons?

@Odie Ayaga Firstly, I apologize for the late reply. My work has been keeping me super busy lately. I guess the way I am looking at the situation (through my non experienced eyes) would be looking at that key word, “should be”. If someone were to default on their primary/second mortgages, I think it’s a safe bet to assume they would also stop paying the property tax. Which would result in, from my understanding, a senior lien to even the first mortgage. The buyer of that note could definitely pay the taxes on the property to keep it current to prevent that from happening. In that situation though, I would prefer a state with lower property taxes haha. That was just my viewpoint though, I could be totally wrong. Maybe @Dave Van Horn can shed some light for us? Have a great night. V/r JT

@Patrick Desjardins,

Thanks for the reply! I've been using Dave Van Horn's PPR Note Co. (not sure if I'm allowed to suggest the website, but we'll see what happens). 

The notes have a suggested bid at around .50 cents on the dollar in regards to the UPB. Is this too much for a NPN?

Your points definitely make sense though. If you were to be interested in these notes, what would your next step be? Contact a real estate attorney in that area to see what you can do? See about having one of those companies that'll drive by the property to take pictures for you to see if the collateral seems decent?

I'm also curious what states are in your top 5 if you don't mind me asking? I would imagine it would be states that have low property taxes and a fast foreclosure process? 

Thanks for all of your help!

Have a great day.

V/r

JT Holmes

Good Evening Everyone,

I have gotten really interested in the note space over the past couple of months. I was going through some of the notes for sale on a reputable site and realized that some of them were the same notes for sale as two months ago when I first looked at the website, which leads me to my question. 

They're all current on their senior mortgage, the FMV provided on the property is well above what the senior UPB is. Their provided credit scores (as of 9 months ago) are decent and there are no reported bankruptcy cases, but they are all located in Connecticut. My question is, why are these notes still listed for sale? From basic due diligence, unless I am missing something, they seem like these would be decent investments. Is there something with CT laws that is deterring people from purchasing these notes? I would imagine if they were a good deal they would have been soaked up; there has to be something I'm missing.

Thanks for giving this a read! Have a great night!

V/r

JT Holmes

@Ken Rishel, thanks for the response! I plan on doing business primarily in California. 

@Ken Rishel, what are those other solutions if you don’t mind me asking? 

I was curious if you were able to figure out the process Mr. Markowski?

I'm located down in Oceanside and am looking to get started in the fixing/flipping and writing notes on mobile homes business. I was wondering if I might be able to talk to you offline or on this forum about the whole process? I'm looking to get all of my ducks in a row before getting started.

Thanks in advance.

JT Holmes

Kurt, Hope you’re having a great weekend so far! In my short experience, the typical HML I’ve seen generally loan at 25-30% LTV with a note duration of 1-3 years, with the main benefits being a typically fast close and not having to go through a traditional lender for a Fannie/Freddie loan. As for paying back the note, refinancing to a conventional loan is the way its been suggested to me to repay the loan outside of doing flips. In my opinion, this method is really only beneficial if you’re trying to move fast on a deal/have a better looking offer and have a plan to force equity through rehab into the property. Hope this helps! V/r JT