All Forum Posts by: Cody Krecicki

@Jay Hinrichs as for foreclosure as a 1st lien holder. Can I avoid using a lawyer by going through the process as the note holder by filing the paperwork myself? 

Where should I look for solid information and the downloadable documents. So I can get it all laid out in theory.

@Jay Raught they're doing it online, I'm going to drive down there after we get done moving this next week to see the excitement.

I read about a new law that allows expedited foreclosure in Illinois if it's foreclosed.

cheap education at its finest. I've got a property I'll be bidding on the 14th here in Vegas for my first property acquisition from auction. Should be a quick flip I'll make $20,000 off but I am all about these mortgage notes and figuring them out: some serious margins.

I'm about to purchase my first distressed note on a property near Chicago for a whopping 1.98% of UPD it'll cost $977 or so. Original loan value was for $52,000 the property is worth $35,000 after doing some research. It has $6000 in tax liens on it. It is also vacant an 120+ days no payment. Owes balance is $50,000

This will be my first investment flip.

As the 1st lien holder of a property like this: should I short sale it or foreclosure on it? It'll take 90-120 days to go through the foreclosure process and it'll cost $3,500 in fees.

How would a short sale work out on this investment? I'm doing this from out of state in Nevada. I don't want to have to go there and get my hands dirty.

Thanks a lot guys. I'll look more into it Jay.

I'm buying them directly from small mortgage companies that don't want them on their books. I have an option to offload them to the bank who is writing them off against legal expenses.

Hello BiggerPockets. I've been surfing your site for a while now and finally want to jump in and start some discussion. I've come across PLENTY of write ups, theory, battle royal over the odds and ends of investing in mortgage notes. I'm not here for any negativity. If you have a sudden itch to tell me what could go wrong that's so arbitrary and low odds of happening: please don't post here.

So here is the first approach. I have three exit strategies and my biggest risk is a 6 month wait if they right me and contest the foreclosure. Here is my strategy for getting the house cheap. I am in Nevada and the typical process takes 90 days if uncontested. I plan on avoiding the courts and taking a non-judicial approach.

1. Buy a non-performing loan (NPL note) that is 30-90 days late or more.
2. Exit 1: Cash for keys -- Exit 2: Foreclosure
3. Foreclosures cost $2,500 to $25,000 here in Nevada.
4. Even if a house is only worth $100,000 as-is and comps in the area are $150,000 and I can buy a NPL at a steep (un-paid balance % of loan) UPD % discount say of $30,000 and spend $25,000 max on foreclosure and eviction. I still only invest $55,000 in a house I can sell for $100,000 as-is with a $45,000 profit. 

Here is my second approach. Which involves adjusting their rate and fixing any liens and reselling the note after I get it performing again.

I have been searching high and low for a piece of land or old house here in Las Vegas under $30,000 and it looks like that is not going to happen. I've been considering just focusing on Georgia, Texas and other states where foreclosures happen really quick. Then turning around and wholesaling the property to investors via email lists I buy.

What do you all think? Share your experiences please.