All Forum Posts by: Julian Buick

Dion DePaoli great discussion and some great points. You are absolutely right, a note is a note is a note no matter where it comes from. It's only worth what you are willing to pay for it and you are right, if you have done your due diligence and figured out how much it is worth to you then you can make an offer on it. The only problem is, if you are looking at it on an online exchange there are hundreds of other people looking at the same deal that are not as well educated and are willing to pay more for the note, even though in your opinion it is not worth it. What happens is you get out bid and don't buy the note. That's fine you may say. It wasn't worth paying what the buyer bought it for so its no skin off my nose that I lost out on the sale. The only problem with this is that if this keeps happening then you don't buy anything because there are always people there to outbid you. I think that was Marie's point and also why me and many other people on this site continue to ask the question "where do you buy notes at a discount and get a good deal?" We are not looking for a hidden list, just trying to find out how to find notes where there is not as much competition.

@Account Closed 

You know your name is the hardest one to tag? Lol. I was being facetious with my earlier post. I realize there's a lot more to it than that. I don't want to just shop note listings like everyone else. The original post was about performing notes. I referred to them as "perfectly good" and was very quickly corrected. I assumed the term distressed referred to non performing but I suppose it could refer to any note that's being sold for a discount, performing or not. I like the idea of buying performing notes at a discount. I'm sure everyone does. I'm trying to figure out how to get them. Looking up online lists doesn't seem the best way to go. I am immersing myself inn REI as much as I can. Thanks for the input.

@Bill Gulley

Ok, so head to the local REIA, network, let people know you're looking to buy seller financed notes, preferably performing. Then sit back and wait for the phone to ring?

@Jay Hinrichs a lot of the ones I have looked into on fci are being sold by the son of the owner. Sounds fishy. Anyway I'm not interested in that. 

Once you have the list of recorded deeds for that month from your title company do you start calling them to see if they want to sell them or do you let them get seasoned for a bit and call in 6 months? Send them letters? Postcards? What's the process?

@Jay Hinrichs I have looked at fciexchange. They seem similar to a lot of the other online note sellers. Selling off the junk they don't want. Not too many, if any, deals to be had. I like Bill G's idea of finding local ones at the courthouse. I have no idea how to do that but it is now my mission to figure it out. Thanks for all the posts guys. 

@Bill Gulley okay it's all starting to fall into place. Thanks for the response. Now for the final part that I'm trying to figure out. How do you find the notes?  I'm assuming they aren't sold online. Do you have to look up county records? And do a bunch of marketing or something? Are there local note wholesalers that can find the notes for you? Although that sounds like brokering, requiring a licence. 

Mike Hartzog sounds complicated. I need to do some more research on partials but those yield values sound appealing. Richard Dunlop There you go again with the slight of hand. Magically creating 90k out of nowhere. You buy a house for 60k that you sell for 150k. I'm assuming you are putting a lot of work into the house to increase the value from 60k to 150k. I doubt that would be free.

@Joshua Andrews 

@Mike Hartzog

 I started this forum based on a comment from Bill G. on another forum where he suggested that someone "Buy a seller financed note that has seasoning in your own backyard, performing with equity. Many note holders are ready for cash after a couple years. Pay around 60-65 cents on the dollar. Then make an offer to the borrower to refinance it, early pay off = profit, rinse and repeat."

I understand that the discount combined with the rate are what is used to calculate the yield. My response to that was the title of this post.

@Max T.

 Agreed but wouldn't people be lined up around the block to buy this note? I'm talking about in general terms, not specific situations. Obviously there are specific circumstances where people do all kinds of crazy stuff but in general why would people do this? 

@Richard Dunlop

Humour me (I'm originally from Ireland so I'm allowed to use that spelling). 

You have a note that is worth 100K, you sell it for 60K. Now you are looking to buy another note. How exactly do you buy another note that is MUCH LARGER?

@Darren Eady

 So my question was, is it possible to still buy performing notes at 60-65 cents on the dollar when the ones I'm looking at are more like 90 cents. Your notes sell for par. That's going in the wrong direction. Am I missing something?