All Forum Posts by: Jim Hartmann

I agree with @Wendy Patton.  Take time to learn all the ways you can creatively finance a property without using a bank.  There are many more ways to structure a deal to where it will work if you can just step back and look at how you can solve the seller's problem of wanting to sell.  Do they really need the cash right now?  Would they be willing to take all or part of the balance as a note over time?  For you to make it through this time, you need to maintain cash flow.  What if you amortize the loan over 40 year or 50 years, does that help your cash flow?  Values will go up and down, but if you have cash flow and hold the property long term then you will get through this time.  Don't be greedy, but be choosy and find something that works for your needs and solves the seller's problem as well.  

I have spent $997 each on a couple courses from one teacher.  I have also attended their annual 4 day academy for $2495 two years in a row.  Also joined a mastermind where I have paid roughly $20k over the last two years.   So overall around $25k for training and mastermind group.

Have learned a lot and am working on recovering my investment.  Probably have made half of it back in note flips and a small things.

Thanks @Chris Seveney.  That is an interesting law.  I wonder what incidents occurred to allow the to allow 90 days.  Thanks for sharing the info.

Jim

@Dion DePaoli

@Dion DePaoli or @Cason Cusack as they have a background in commercial note buying and other investments.

Overall the process is the same, but you will just need to do more due diligence on the local economy and how stable are those who are using the building - especially during the pandemic where businesses are not able to be open or are closing their doors for good.  

Jim

I would agree with @Chris Seveney.  Start with the cheaper options first.  I know Dave Van Horn has a book on BP and have read Performance Anxiety by Gordon Moss.  I have not read any of the other books on non-performing notes out there, but the BP forums have lots of good info.  Reach out to other BP members that are in these discussion forums and see if there is anyone in your area that you can learn from as well.  I recently discovered a podcast named Naked Notes which discusses non-performing and I believe Chris has a podcast as well which might be beneficial.  There are some courses out there for non-performing, but do your research on them as the market gets flooded with "experts" and some are not so reliable.

I have gained a lot of insight and mentorship from Donna Bauer (www.theoriginalnotebuyer.com).

She has courses and coaching for sale, but as mentioned above there is a lot of free or inexpensive info out there to help get you started.

@Katharine G. don't forget to calculate in the holding costs of the property.  How long do you think the renovation with take to complete?  How many months will you need to borrow money and make payments on the loan, insurance, utilities, etc.?  These can eat into your profits as well.  

Since he has owned it for so long, I would check to make sure that you do not have to spend extra money bringing something up to current code for the area.  Verify if any work was completed without a permit over those years.  A big one in our area is for someone to convert garage space into living space and not get proper permits.  I have heard stories that the city/county requires it to be put back to the original structure at the new owner's expense.  Not sure this is even the case, but just some things to think about.  

@Brett Burky that is good to know.  I appreciate the feedback.  

With the hard money loans, those are usually short term loans.  Are these performing or non-performing loans?  How much seasoning are you requiring to have on these prior to purchasing them?

Thanks

Jim

@Robert Harpster - I should have read your post a little closer as well.  I looked around a couple years ago for sites that sold the notes, but decided to market directly to potential sellers.  I have been ramping that up over the last couple years and been able to buy some that way.  I expect more notes to start hitting the market soon due to uncertainty in the economy due to the virus.  This could drive more assets on sites like PaperStac.  Make sure to do thorough due diligence in this time to make sure that it is performing and will continue to be performing as much as you can.  Sometimes these sites list assets that have already been picked over, so just be careful when jumping in through those sites.  Some will have good assets for sale, so just verify, verify and verify.

Hi Robert,

FNAC (First National Acceptance Company) is who I have used before in the past for performing residential and light commercial properties.  With the Covid-19 changes that have happened, they are now restricting some states that they buy from and they have greatly tightened their underwriting on commercial.  

If you have questions on commercial notes, I would suggest @Dion DePaoli who is here on BP.

Wish you the best.