All Forum Posts by: Les Goss

@Shanequa J., I contact the bank directly. The person you are looking for may have different titles at different institutions, but they will be the person handling non-performing assets.

Instead of calling every bank in the state, I look to the call reports they file quarterly with the FDIC. If you know how to interpret those you can narrow it down to the banks that have a lot of non-accrual notes in the asset type you are looking for (residential, mutlifamily, commercial, etc.) You can get some good training and tools for this from Brecht Palombo at https://www.distressedpro.com/.

Good luck!

Les

I currently get my notes from a few hedge funds and local banks. I'm wondering about your experiences, positive or negative, with Watermark and FCI Exchange. 

Thanks,

Les

Not personally, Arthur. Still theoretical from my perspective. :-)

Bob, I agree and thanks for the reminder. I'm seeing a lot of land contracts, so that's what I was thinking about.

Les

Just posted a blog with this title. You can see it here: 

https://www.biggerpockets.com/blogs/7697/49098-how...

It discusses using the Hardest Hit Fund if you have a non-performing note in one of 18 states or the District of Columbia. 

Good idea to mix in running with your lead-seeking, @Ishmael Tillery. You'll definitely need to figure in the taxes as part of the expense package. If you're sure of your ARV (critical), you're now looking at 79K (120-30-11) as a starting point for an investor. Not sure what flippers are looking for in Atlanta, but say they'd like to pay 70% of ARV less expenses. So you're looking at 55.3 to the investor. If you'd like to make 5K on the deal, take that off leaving 50.3 as the final price you'd like to pay. Therefore, start negotiations with the seller below that.

@Jennifer Griffin, way to go getting an off-market deal! Always the best kind. Have you looked at rentometer.com? Put in the property address and it will give you a good idea of what rents are for 2 beds in that area. That will give you ammo with tenants you want to keep as well as a good starting point when you advertise for new residents. Good luck and have fun!

I just posted a blog showing three reasons I've passed on buying a performing note. Instead of clogging up the forum I'll just leave a link for those who might be interested.

https://www.biggerpockets.com/blogs/7697/48647-reasons-not-to-buy-a-performing-note

@Robert Carpenter, we're not big enough to buy from Freddie or Fannie, or even the hedge funds they sell to. Those will eventually trickle down to a fund that will sell singles or small pools.

Another way to find bank NPNs is to contact local and regional banks directly. Many of these are portfolio lenders that hold their own notes. When they get tired of holding nonaccrual notes they will sell them, maybe to you if you've built a relationship.

You can find the status of every bank in the country by looking at the call reports they have to submit to the FDIC every quarter. They're about 80 pages long and difficult to interpret. Brecht Polumbo has a course that will let you figure out if a bank is a likely target for a call. He also has some online software that will comb through all the data and just present you with a list of likely candidates. https://www.distressedpro.com/

Hope this helps,

Les

@Steve Hodgdon, I've taken Detroit off my list, but I know there are many who are scooping up properties there with success. Having a local source of info would help. I looked at several properties (notes) in Gary, but I always put the address into trulia.com and the crime map they show as you scroll down the page always made me nervous, so I don't look there anymore. The main fear I had was not being able to resell an REO if I got a house back because of the rough neighborhoods.

Thanks to @Scott Carson and @Bob Malecki. I appreciate your input!