All Forum Posts by: Richard Dee

@Richard Dee For 2nds, it's vital to get a profile of the borrower and their overall credit worthiness. Are they paying on the 1st and most of their obligations, except for the 2nd? If yes, that could be a good one.

To accurately gauge your upside, you need to know the payoff. The seller should be able to provide one for you. If not, you'll need to calculate the interest owed for 8 years and add that to the UPB to get an idea of the total debt.

Thank you. They are current on the 1st but only fair credit. As stated not much equity in the home.

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Originally posted by @Andy Mirza:

@Richard Dee My very first note investments were 2nds in a joint venture in 2013. Back then my partner acquired them for 5 to 20 cents on the dollar and they had little to no equity or were upside down. They weren't delinquent for 8 years, though.

Investing in 2nds is a whole different animal than investing in 1sts. Those investments turned out to be extremely profitable but were riskier than I knew at the time. I don't touch that stuff now.

For your note, have you tried to ask the seller what their pricing expectations are? If they're willing to share that, it can give you some insight as what they're willing to accept. You saw the reaction of a couple of investors here and what they think it's worth. In the absence of additional info, I'd start by offering $2000 and maxing out at $10k IF you are certain that it's a good deal.

Risking $10k to make $110k plus makes it worth it, in my opinion.

Is $110k the UPB? If so, the Total Collectible Debt that you'd be entitled to would be way more than that.

Thanks Andy... I am waiting on info. I agree there is not much value especially considering a declining market. The $110k is the original note balance. I think the UPB was around $80k or so.

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Originally posted by @Dean Dubach:

Richard, As Chris stated, if it is outside of the statue of limitations, it's worth the recycling value of paper, about $0.01 per pound.

Thanks. It is inside the SOL still

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Thanks @Chris Seveney, I understand it isn't worth much, but it is inside the statute per state laws and I see these transferred all the time and see people say they pay "pennies on the dollar" but not sure if that is a couple of cents or what several times that?

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I am looking at purchasing a non-performing 2nd note on a property that is barely above water on the 1st mortgage. It hasn't been paid on in over 8 years and am curious what the typical discount would be for a $110k non-performing 2nd note with little to no equity. I'm sure many will say they would not buy it but I'm just looking to know the ballpark discount on this type of note. Thanks in advance!

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I am thinking this fall/winter will be a good time to add a pool and do a third garage/pool house addition and would like a construction to Perm. Every lender is trying to sell me on a HELOC but I'd rather have a construction loan that rolls to a permanent upon completion. I have plenty of equity in my house as is, and the addition will increase the value more too. Does anyone know if a lender offering this?

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Wanted to see if anyone has any recommendations for a good builder that builds in South Fulton?

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Atlanta, Georgia

I'm looking for an Atlanta area attorney that can do the foreclosure proceedings on a couple of lots that won't cost and arm and a leg. Does anyone have any recommendations?

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I'd like to network with some investors/builders interested in building a few homes in an existing subdivision with homes priced in the $350k range.

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I'd like to network with some investors/builders interested in building a few homes in an existing subdivision with homes priced in the $350k range.

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All Forum Posts by: Richard Dee

Richard Dee has started 11 posts and replied 17 times.

Post: What % discount to buy a non-performing 2nd note?

Post: What % discount to buy a non-performing 2nd note?

Post: What % discount to buy a non-performing 2nd note?

Post: What % discount to buy a non-performing 2nd note?

Post: What % discount to buy a non-performing 2nd note?

Post: Construction to Perm loan on primary home for pool addition

Post: Builder Recommendation for Spec Home in South Fulton

Post: Recommendations for Atlanta Attorney

Post: Anyone Building New Construction in Atlanta?

Post: Anyone Building New Construcion in Atlanta?