All Forum Posts by: Peter Lipschutz

Count me in! Looking forward to it.

Thanks for the great feedback. I hope to meet everyone at Papersource next month.

Good advice. I'm already planning on attending Papersource. Thx.

Thanks Bob. I knew I could count on you to jump into the discussion! 

How do I find the reputable funds so I can get on their list of approved buyers? Is it all through word of mouth?

As a new investor in NPNs, I’m having trouble deciding which source I should pursue when shopping for notes. I’m currently not trying to build a business, just invest my own funds. I’m looking to buy 1-2 notes a month. Here are my thoughts:

Small banks/credit unions - A lot of upfront work to build the relationship and I may not have enough volume to justify the effort.

Small hedge funds - My gut feeling is that by the time that tape gets to the individual investor, most of the “cream” has been skimmed off. That’s not the end of the world as long as I can review a decent number of tapes each month and look for the few notes that meet my criteria. Also, what are the reputable funds and how do I find them? Are good hedge fund lists available for $$?

Exchanges/individual investors - I see two big problems. You have no idea who the sellers are, and the notes have so much exposure that they’re probably over-priced.

I realize sources are a tightly guarded secret, but some general guidelines would be helpful.

I’d love to hear from some of the more experienced players out there.

Thanks!

I'd love to hear more opinions on how everyone gets an accurate FMV on note investments.

 Thanks for the tip, Bob!

What do you offer the agents? Do you pay them? Promise them the listing if it becomes an REO? Thanks.

I just put in offers on my first two NPNs. The seller supplied recent BPOs on the properties and I "verified" them with values pulled from Trulia, Zillow, etc. Everything looked fine.

After we agreed on price, I spent close to $400 and ordered my O & E reports and my own BPOs. The new BPO values came in at HALF the value of the seller's BPO and websites. 

I understand the numbers are just opinions of value and I expected a variation of 10-20%...but 50%?

Is this unusual? I feel like there's got to be a better way. Any insight or suggestions that would allow me to avoid this in the future would be appreciated.

Thanks!

The notes that the hedge funds are keeping for themselves, are they contacting the borrowers and getting the notes performing? If not, how are they profiting?