All Forum Posts by: Michelle Burdo

Thank you for all of your comments. I rarely chime in but I appreciate learning from all of your points of view. I'd like to get your input on the headlines I've curated from your thoughts as well as the OPPORTUNITIES that lie ahead (I'm a smiley optimist at heart):

The biggest headline I see is DO NOT BUY (right now): 

I hate making blanket generalizations, however it seems foolish to think otherwise. Performing notes will likely become NPN, which is supported by the fact that RE experts are stating 25-50% of borrowers will likely default in the coming months. Therefore, if you purchase a performing note because of solid payment histories, that could all be thrown out the window relatively quickly. In the end, you'll be overpaying. Also, NPN are a riskier bet than just three months (or weeks) ago. Combine this with the fact that state and local governments are putting moratoriums on evictions/foreclosures and you can easily fall into a position of hemorrhaging money.

I'm an action person-I hate waiting. I've waited so long to get into this and finally when I got my ducks in a row...BOOM. Coronavirus.

So I ask you-what can I do right now to be in the best position to pounce when an opportunity arises in the next 6-12 months? So far, I could think of :

1. Focus on networking

2. Follow the markets and transfer more money to my solo 401k at the appropriate times

...what else? 

Thanks for your thoughts. 

Hi all. I'm so sorry to hear some of you have been scammed. I am based in Orlando and a former news anchor with connections in the area. If anyone is truly interested in taking this to the media, I can guide you in the right direction. 

I am a newbie in this arena and I certainly would want to know about situations like this. Very newsworthy with the proper documentation for a fair story. 

Let me know if I can help.

Not to open up a can of worms here, but I'm assuming this question also dips into a bigger question: What are the pros/cons of purchasing with cash vs. SDIRA? @Bob Malecki and @Chris Seveney -do you have any insight on that? 

Curious to hear people’s first note stories. If you JVed how’d you find your first deal?

@Chris Seveney this is fantastic! Thank you for the compilation!

Thanks for all the feedback. I do find it curious that there isn't a standardized go-to list in the industry (like a checkoff list) to qualify an investor. I'll definitely be scanning through all of these comments to put forth a comprehensive effort. Many thanks.

Hello all. 

This is my first post here. I have done my 'due diligence' in researching the note business. Knowing myself, I have determined I'd like to purchase a performing note in the state of FL as a JV. I like having the mentorship and enjoy learning from an investor. I have already met some wonderful investors that I trust, but I am trying to go into this investment with my eyes wide open.

With that said, what documents/background checks/legal agreements does a JV need to review to ensure a quality partnership with an investor? It feels odd to give someone (or an LLC) 15k+ without feeling very vulnerable. What questions would you ask your potential investor? Here are some thoughts I've cultivated so far. I'd love to hear your thoughts as well.

1. Can I see your books? 

2. Can you send me a sample monthly report you provide your investors.

3. Who's responsible for contacting the borrower if they don't pay and the note becomes non-performing

4. Do you provide 'worst case scenario' information (ie foreclosure costs and timelines for the state of residence?) 

Basically, how do I ensure I'm not getting bamboozled. TIA.