All Forum Posts by: Miranda Holland

Thanks for pointing this out Chris. I need to consider this in how I word it.  I'm not a joker broker and I understand the process that note brokers typically go through to build relationships with the person who's in charge of defaulted notes at the bank.

My situation is unique. Someone built a platform where banks can quietly sell their non-performing notes and REOs to get them off their books earlier than they normally would. I have been invited to bid on these notes. I can bid on them for myself and wholesale them as long I don't float funds in the closing or I can bid on them as a buyer's agent. 

But I do need to focus more on getting people to take me seriously 

Banks who are 1st position Lien holders to mortgage notes backed by residential property. They're at different stages in the foreclosure process. Alot of these homes are vacant but I can refer a service company who handles the foreclosure process and get courts to appoint a reciever to rent out the property so the note holder can collect rents while waiting for the foreclosure process to complete 

If I'm reading your scenario correctly, the 2nd lien holder gets no money at all. The second lien holder should have never foreclosed because the 1st lien holder gets paid 1st. And the first lien holder doesn't mind taking the 50k hit because he was likely to take a much bigger hit anyway. The 2nd lien holder did the 1st a huge favor. Now if the property sells for 200k at auction, the 2nd lien holder will get their money. 

But if the property sells for more than 200k at auction, the excess funds is SUPPOSED to go to the BORROWER (HOMEOWNER). But, the funds usually ends up going to the county because the borrower doesn't know they had a right to that money. 

What is a good way to find people who are interested in buying non-performing notes? I have access to sellers nationwide so I'm going to be wholesaling and/or brokering these notes but I want to start building a buyer's list first. 

There's definitely changes happening in the industry. But with the lenders I know that still do 80% cash out, it depends on different factors like property value and stuff like that. 

Sounds to me like your lender was very arrogant and saying that. There's so many other lenders and they all vary in their lending criteria. If you're going through a traditional bank or credit union, you might want to look at some private lending companies

As a Private Money/ Hard money consultant myself, I'm not sure how to answer your question. Whenever you're starting a new business or a new job there's going to be unfavorable surprises. It's part of the process. But once you become a successful person in your field, the good will far outweigh the unfavorable surprises you have along the way.

I do recommend you utilize the services of a private money broker though. They can save you a lot of time and frustration investors experience when looking for the right lender for their deal. 

With my lenders, down payments are based off experience and credit history 

Lenders vary when it comes to just about everything. There are plenty of lenders that have 30 yr fixed rates but there are plenty of lenders that don't have long term rates at all.  You have to either find a lender that offer the loan you need for your situation or, work with a broker who will match you and your deal with the right lender 

There are Private lending companies that will do portfolio loans but they can be hard to find at times especially for properties that are valued under 100k. Private Money/ Hard money lenders don't really care about your work history and many of them set the bar pretty low when it comes to credit scores.