All Forum Posts by: Austin S.

Good morning all, I just happen to be in Boulder for the rest of this week on business. Would love to maybe get a few of us together for dinner and just talk real estate. Any takers?

I love seeing this. So many people want to never pay taxes but I am with you on this one. I will legally take all the deductions and credits I am allowed by tax law but if I have a big tax bill after that it means you are doing something right!

First off, I am not posting here because of some advice I got from a guru. Unless you call my father, who has been in real estate for 30 years a guru. I would prefer to call him a mentor. I have dabbled with real estate here and there, by no means anything very complex. My wanting to start looking at purchasing notes is just because my father just received a call from somebody wanting to sell the note they were holding. Motivated seller and it was purchased for about 50% of UPB. As I have noticed on other threads, I don't think it's fair and or useful to "assume" that the person asking the question is totally clueless. As a matter of fact Dion, I'm well aware of who the originator and note holder are. I work at a bank and all we do is originate mortgages. We hold some in portfolio and sell some to the secondary market. I guess I would just ask for people to answer the original question and not go off on tangents with assumptions that may or may not be true.

My question was for those who have sent out marketing material to potential motivated sellers of notes that they hold, to give me some talking points to include in a letter offering to purchase their note. Thanks!

I am looking into purchasing some notes. I have a list of private mortgage lenders in my county as a starting point. Do I want to craft a letter and send it out to the note holder? That seems fairly impersonal and didn't know what a response rate might be. Or would I be better served cold calling them? In either instance, what are some talking points to start the discussion with the note holder besides "I'd like to buy your note at a discount" LOL

Not sure what area you are looking in but I would try and get with Mark Ferguson. I have had various conversations with him via email. He is quick to respond and had no reservations about helping me get a quick comp for a property I was researching in Evans.

Welcome to BP Ryan, I am new to REI as well. Just closed on my first rental property last Tuesday. I have never heard of a reverse tither but I really like the concept and what a noble goal. Good luck!

If she is saying she doesn't have financials, my guess is that she really doesn't (which means she has no idea if she is making money or not) or she is trying to hide something. Just because there is no mortgage, as you stated there is obviously still income and expenses, just no debt service expense. To answer your question, I would still want to see them unless you are fairly comfortable in your assumptions of what you would expect from the property.

Spot on Ned! That's why I'm here. To gain insight on what I can go back to the table with. I don't like the risk I'm taking on for a possible long term loan with no possible upside. The goal is of course to turn as many as possible so the $3k upfront fee makes sense in that situation. Just not sure how to counter back with anything in case the deal takes 1 year or longer.

Karen Margrave Thanks for asking. The $3k fee gets paid 3 days after closing on the deal and will be cash from the LLC. Purchase price is around $200k. Real estate market is very solid and on the upswing. I would personally guarantee the LLC loan with a 1st mortgage. The first 30 days is a marketing period to try and sell outright. If that doesn't happen, we are looking for tenant buyers with down payments. Rent will NET around $400 per month. The LLC will be making all payments for debt, repairs and maintenance. I would hold my $3k fee for payments in worst case that LLC doesn't make the payment, as a precaution.

I'm looking into doing a deal where there are the dealmakers (a realtor and his partner's LLC), a money partner (will provide the 20% down payment), and a credit partner (personally guarantee the 80% loan for the LLC). I'm searching as to what kind of compensation I, as the credit partner, should ask for? The initial offer was a flat fee of $3,000 and then an extra $500 per year the loan is outstanding after year 2, with maximum of 24 months. So, the total amount I could make is $4,000 if the deal lasted 4 years or longer. Now, the goal is to get the deal closed and then sell within the first 30 days. Short-term it looks like a good deal, long term not so enticing. I would like to maybe negotiate a percentage of the whole deal so if it ends up taking 2+ years, I would be benefit from price appreciation (of course if there is any). Thoughts from anybody on if the flat fee sounds reasonable? What other information might be needed to assess it?