All Forum Posts by: Michael Rogers

• Learn how to invest in Mortgage notes - Lexington, KY, Sat Nov 18th.  Click link below for more info and to register for event.  At the end of the day, a 3-day training program will be offered from NoteSchool
  
  • https://lp.noteschooltraining.com/sp-lexington-1-day-event
    

Real Estate Investors, seats are going fast! Capacity has been limited to 65 seats. This Sat, Nov 18th, the 1-day event on how to invest in "Mortgage Notes" will be presented by Joe Varnadore. Joe has over 25 yrs experience in note investing and has bought/sold more than 10,000 notes in his career. Joe will be flying into Lexington from his home in Florida for an in-depth look at "Note investing."

If you want to learn how to "become the bank" - collecting mailbox money without having to deal with "tenants, toilets, or trash" from land lording, find REO's before they become REO's, have another real estate strategy you can "pivot to" when the real estate cycle changes, "Note investing" is the answer.

ALSO, Roberta Hudy from Equity Trust Co, the largest Self-directed IRA custodian in the nation, will give a presentation on how to use IRA funds to invest in any type of real estate, commodities, precious metals, such as Gold/silver, and other alternative investments. She will share the benefits of ROTH versus traditional IRA account. Roberta has over 25 yrs experience in advising small business on tax strategies and leveraging IRA accounts to build your wealth.

Please click the link below to register. With your $35 registration, you will receive a free e-book, "Making money from the Meltdown." This fee also a free CD on the "top 10 mistakes to avoid in Note investing," and includes snacks and a hot buffet lunch catered by Bluegrass Catering on Sat, Nov 18th.

https://lp.noteschooltraining.com/sp-lexington-1-day-event

Chris, thanks for the link about licensing in KY.  I'll check that out too.  

Tracy, thanks for explaining your thoughts on exit strategies, they make perfect sense! I have been investing in notes for just over a year, and I agree with all your comments! For this NPL, trying to do the loan mod may not be your "highest and best use" of your funds. Going for a DIL or taking it through FCL to get this as an REO would make more sense, and provide the most upside. Lastly, for me, I too prefer to diversify my risk by "managing more smaller notes versus one big note."

Hi Saami, congrats on your due diligence, persistence, and eventual success at your 1st property.  Did you leverage your purchase of your Charlotte rental?  If you paid all cash, I have a model that you should look at.  I provide turn-key rental properties to investors on the West coast.  My assets are in the "rust belt" - the hottest markets of today for rentals.  I also have personal rentals in my home city, Lexington, KY.  I target 2% rule, and most of my houses hit that.  In fact, I have some houses that hit 2.5% rule! Let's talk.  I will send you a PM.  

Hi Chris, I live in KY and own 7 notes, 3 of which are performing and 4 are non-performing that I am working through the FCL now.  I see you live in Virginia, where did you see that to own notes in KY you had to have a license?  I may need to look at that statute.  Thanks.

Hi Sam, most of the inventory of REO's slowed down in the past years mainly because banks are selling the non-performing paper (notes) to hedge funds rather then taking them to REO's and then selling them through local agents (as stated by these professionals on this thread). I have become a note investor specifically to gain access to both performing notes and these non-performing notes that can become my "personal REO" through foreclosure or DIL (if borrower is unable to modify their loan). You might want to consider note investing. We have a group of note investors starting up this year in Lexington, KY. Let me know if you'd like to learn more about this alternative investing.

Hi Isaiah, you can contact local commercial brokers in the area and ask for "market Cap rates."  There are also many websites that do multifamily market reports - they will list metrics like vacancy rates, Cap rates, OpEx etc for MSA (Market Statistical Areas" around the US.  For Lexington, KY, I am hearing that Cap Rates are 6% to 8%.  Depends on the class of the multifamily.  The higher the class, i.e., A-class properties are probably closer to 4% to 6% Cap rates while C-class properties would be 8%, maybe 9% to 10% if there is a lot of deferred maintenance.

If the asset is positioned well with regards to cash flow, Cap rate, and appreciation, and the seller owns it free and clear and the seller is open to seller financing, be prepared to answer questions on your "ability to pay," i.e., credit scores, credit history etc.  For the seller to create a note, he will likely want to underwrite you and will have questions for you on that point.  Do some quick research on what makes a "strong borrower" and be prepared to discuss that.  Also, with seller financing, there will be the asking price and the terms.  You get to pick "one" - if you get good terms, seller should get his price.  If he wants great terms, you select the price.  No one gets both.  A win-win transaction in seller financing is "price or terms" - each person in the transaction  picks one.

I've never heard of them, and just saw their website for the first time, http://riesiggroup.net/

Their website seems legit, they seem to be a group that combines investor funds and simply invests in local real estate around the Lexington area.  What is Justin offering you?  I'm sure they are legit, did you check Better Business Bureau for a score?  I know a lot of the local investors in Lexington, I've done deals with quite a few of them, but never heard of these guys.  They will have a management fee which will reduce your overall returns - but they provide a service, so it depends on what your objectives are.  How did you find them?