All Forum Posts by: Michele Apt

I agree @Martin Saenz.  There are so many ways to make notes profitable if you are willing to do the work and be creative.

Hi Ryan!  Here are my favorite resources for note investing.

Podcasts-
          The Note Closers Show with @Scott Carson

          NoteMBA with Chase Thompson and Robert Woods

          Owner Financing and Note Investing Podcast with Dawn Rickabaugh

@Scott Carson has a boatload of excellent videos on https://vimeo.com/weclosenotes.  Some of the more recent ones are copies of the podcasts but there is a ton of great information there.

As @Linda Hastings suggested, Paper Profits is good.  @Martin Saenz has a great book "Note Investing Made Easier".

There are also a lot of note investors on Bigger Pockets that are happy to answer any questions you might have.

I was wondering the same thing also hearing the reference at Note Expo so I did some spidey searching with Google and found this for "A" notes.  

"An "A paper loan" is just as it sounds; a loan with the highest credit grade possible. It normally is going to have the best interest rate, lowest cost, and least amount of non-desirable features when compared to B (often referred to as "Alt-A") and C (or "subprime"). Banks give loans with an A paper grade all of this due to a number of factors. The primary being the low risk of an A paper borrower in defaulting on the loan.

These are not absolutes but an A Paper loan usually falls under these guidelines....

1.) The borrower has a 680 mid-FICO score or higher
2.) The borrower has verifiable income and the loan's Debt-To-Income ratio is less than 35%
3.) The loan's Loan-To-Value ratio is less than 80%
4.) An A Paper borrower normally has at least two months mortgage payments in "liquid reserves". This can be in a checking, savings, investment, or even retirement accounts at any financial institution
5.) The borrower's credit report can not have any (non-medical) outstanding collections. Even if their credit score is above 680. "

To those that are getting started or thinking about getting started in notes, I think you will find the environment refreshingly different than other avenues of investing. Most note investors are very willing to help new people with questions or even potentially JV'ing on their first note purchases.
A basic understanding of notes is definitely needed but there is no education like buying notes and working your way through them.