All Forum Posts by: Bill B.

OK.  I'm learning.  No takers on this so far after seventy views. 

Was it the presentation? Did I leave basic questions unanswered? Is it that the dollars are too small? The ROI not high enough? If this is not a deal, what would make it a deal?

I need to make this go and this is the best note I've found out of hundreds I've reviewed.  I always heard that money will flow to good deals.  I thought this was a good deal.  If I was incorrect, I need some help to understand what I've missed so that I do not waste all of your time, and also my own.

Any schooling that can be offered would be most appreciated.

First, thank you, and your family, for your service to our country.  Be well and come home safe and soon.  

A great guy who will walk you through how to maximize your SDIRA with a great overall plan for retiring very well, and (due to your young age) most probably early, is Jeff Brown. 

He looks at comprehensive plans using insurance, real estate, and notes to create a wealth building plan.  

Again, Thank You for serving our country.  God Bless you and your entire family.

Hello,

I've found a non-performing note in Fort Pierce, Florida. I have NOT purchased the note. I'm looking for an accredited investor willing to enter into a JV that will purchase this note.

ARV of the collateral securing the note is $65,000.

My own work, and an AVM, confirm the ARV of $65,000. I have a full BPO ordered that should report on Tuesday. UPB is over $90,000.

Total Costs to purchase, hold, service, pay back taxes (if needed) are $31,000.

I'm seeking $26,000 from the accredited JV partner.  I will provide $5,000 in workout costs.  The JV partner will receive 70% of net proceeds after all costs to purchase, hold, service, work out, and exit the investment are paid in full. 

As-Is CMV is approximately $40,000. (If the exit is a FC and sale to a rehabber.) Assuming a sale at CMV of $40,000, and Total Costs of $31,000 yields Gross Profit of $9,000.   

70% of a $9,000 Projected Profit is $6,300, divided by a $26,000 investment yields 24% to the investor. 

The return noted above cannot be guaranteed. It is based on projections and could be lower, or higher. There is risk in all investments, this one included.

Thank you for your time, attention, and consideration.

Hi @Dion DePaoli

Not trying to highjack the thread, but I want to be certain I understand.  While it is clear that the Mortgagee is not entitled to the deed and only to repayment of the loan, doesn't the Mortgagee have the ability (assuming all required prior steps/actions established by Virginia law are fulfilled) to initiate foreclosure? 

Thanks!

Bill

I am NOT experienced in the FL market.

That said, I know that foreclosure in FL can take many months and will cost more than the $1500 margin between your purchase price of the note and the $3000 face of the note.  Even if there are significant fees and back payments owed, I doubt there is enough meat in this deal to profit.

The low amount outstanding makes me think this may be a second position note.  If so, you have to be certain that the first is performing.  If not, and the first forecloses, you can lose your entire investment.

It is nice to make your first deal with a smaller investment, but it sounds like you are very new to investing in notes. If that is true, I'd strongly suggest that you find someone near you that invests in notes and offer to help them with their business. You will learn from the inside how things are done. A local REI club is a great way to meet people who are already experienced with notes.

I hope this is helpful.

Bill

@Katy Shearer

Learning by doing is the ONLY way to learn....with some very important caveats.  There are a LOT of federal and state laws and regulations governing notes.  It is critically important that you have a servicing company on board BEFORE you purchase the note.  On your first several notes I would also strongly advise that YOU NOT contact the borrower directly as it is far too easy to violate rules established by Dodd-Frank and the Consumer Finance Protection Bureau.  

If all goes well, you are OK.  If not, you can find yourself in violation of federal laws.  This is NOT meant to scare you away.  Just learn the ropes with people who know where the mines are laid.  That means a reputable servicing company and a mentor from your local REIC.  

I'd also add Watermark Exchange as another site to get familiar with notes.

I hope this helps.

Bill

Hello, 

Bumping this thread to see if there are any Mortgage Brokers in north-east Ohio who have recently completed an FHA 2010-23 refi. I'd like to send some business your way.

Thanks!!

Bill

Hi,

I'm evaluating a non-performing note secured by a property in Washington Court House, Ohio.  Are there any flippers that work in that area on BP?  I want to discuss the market in Washington Court House.

Thank you @Mike Hartzog!

We've asked for paystubs for April, May and June.  That will help us to structure the deal properly. 

Any Mortgage Brokers out there who have 10-23 experience and are looking for work?

Hi,

My partner's corporation and my corporation are in a JV that owns a note in Ohio. The JV is in forbearance on that note. The JV has been receiving payments (through a well known servicing company) on time since April. If the July payment is timely, the JV is going to modify. The proposed modification is to reduce the interest rate from the current 9.125% to 6% and leave UPB untouched. The target exit is to have the borrower apply for an FHA 10-23 refi after four payments under modified terms.

First, having read the FHA letter, is the program still running? Specifically, has any BPer used this exit in the last couple of months? Assuming the program is still running, what pitfalls should the JV be looking for? Importantly, the 10-23 program requires that the borrower be current on the present mortgage. Does that mean that current payments in forbearance count? Or, does it mean that we must modify first and the borrower must remain current after the mod? Can I hold arrearages "over the borrower's head" after modification, stating that arrearages will be forgiven if four payments are made after modification, or must I forgive the arrearages at the point of modification? Finally, what have I NOT asked that I should have asked?

Thanks to all!!