All Forum Posts by: Stephen McMullin

All-

Can someone with direct experience comment on the nature of the rights accruing to the 'buyer' of a partial note from the 'seller'? I'm sure that all purchase agreements can be customized to suit the needs of the parties, but I am interested in what the 'typical' or 'market norm' looks like.

Hypothetical: I purchase a partial from a held back (seller financed) note. Lets say I buy the first 6 years worth of payments. Lets further assume that payments stop in month 24. At that point in time, how does the partial note owner and the seller of that partial coordinate enforcement actions?

Ian-

I hadn't considered direct marketing seriously. To some extent, this is attributable to the fact that the transaction (process & papers) are not familiar to me. I had thought it would make some sense to get a deal done once or twice using someone familiar with the mechanics. 

That said, I think you make a good point. If I was successful in originating a deal, I would still need a trusted resource on the transactional side. That said, that person would (presumably) be an attorney with no vested interested in the economics of the deal. Perhaps this is the better way to go.

Do you have any tips w/r/t direct marketing? I understand that municipal/court registrars will store mortgage related data (I have seen this for Miami-Dade county). If the mortgagee is a natural person, I suspect that is as good a lead as any. Any other tips?

Bob-

Thanks for inquiring... Mid to High teens. Of course, it depends on the underlying stability of the cash flow. 

I'd prefer mid over high teens if the former had a comparatively more steady tendency to pay.

Hello All- 

I'm a relative newbie to the real estate arena - and a freshly minted member of BP. That said,  have a considerable amount of experience in asset-backed finance.

Because of this background, I have gravitated towards the notes space. I find the whole arena interesting and have done a material amount of leg work to understand the space and the mechanics. While there is always more to learn, lets assume that I have reached the requisite threshold to pull the trigger on a small deal (First Lien/ Performing/ Residential).

Despite strong efforts, I can't seem to find a Note broker that I can get comfortable with. I am particularly concerned about adverse selection - I am being offered the 'left-overs' that more experienced players (including the broker him/her/itself) have/has passed on. 

I'm looking for a broker with an incentive structure consistent with buyer's interests. Would really appreciate input from those at BP who have done deals through brokers they trust/ have established relationships with. Thank you.