All Forum Posts by: Account Closed

Ok dumb question but the term note confuses me. I just looked up myself for example online and saw a Warranty Deed upon purchase and then a mortgage. On the mortgage it says “This debt is evidenced by Borrower’s note dated the same date as this Security Instrument (“Note”)..... I don’t see anything else recorded. So where would the note be? (By the way this is on a property I no longer own and don’t have a mortgage now where I live either so I’m just asking to learn) Thank you!

Thanks Mike Ruscica for responding. I heard you were at the NoteExpo (I really liked that event) and were a complete gentleman to a guy I’ve come to know that is new also and didn’t really know anyone there. I think Jay Hinrichs brings up a good point about the internet changing the game. It definitely lowers the barrier to entry but on the other hand it makes research a lot easier. Just as a side note, I sold a business last year and turns out it was to white collar criminals who tried to steal quiet a bit from me. But thankfully due to the power of the internet I pieced it all together. Without the internet they would have gotten away with it. So as you say due diligence is key and I do now have a grasp on the banking side of it thanks to that DistressedPro. Really makes those FDIC Call Reports easier to understand. Thanks again and keep warm up there in Jersey. Spring is only a few months away (I pahk my cah so I can commiserate :) )

Thanks Jay Hinrichs , I find you and Bob Malecki the two most honest people on here well and Dave Van Horn when he chimes in (no offense to others as I’m sure there are, I’m just new and the names I mentioned stand out.) And “massive” is relative :) to you and many others I’m sure it wouldn’t be, just to me it was a lot. A lot of people coming into this space, this is no get rich easy gig by any stretch of the means. Probably 5 years ago when banks or when the crisis hit, yes. But I agree with you we will never see that opportunity in our lifetime. I’m sure there will be others, just not this. Doesn’t mean you can’t make a decent living, but that’s all relative too.

I have to be honest, I’m not living it. I’m new but this business from what I see is not what it’s portrayed. I do find people some of the well known people here pretty honest but I am very good at eliciting info and I see a lot of shiftiness. I listen and watch people; more than they realize. With that said it’s new so there is a learning curve. I sold my business last year and I’m going to be hit with a large tax bill. I called where my books were and asked them to pull the P&L and give me the bottom number. What they gave me, I almost fainted as it would have been a massive tax bill. Long story short, I called my accountant and he said to send him the information. I had it emailed to me first and I opened the P&L and saw the problem immediately. In other words it was easy for me; this note business so far is not so easy.

Thanks Bob Okenwa but then what’s the point of issuing a government backed loan if they would sell it at a discount like a traditional loan to free up capital. Thanks

Apparently as prices are rising, FHA is increasing their limits to government backed mortgages on average by 6.4%: https://themortgagereports.com/34740/fha-loan-limits-are-increasing-thats-good-news-for-borrowers Someone posted another article that as wages aren’t keeping up with the rising price of homes, we could see an uptick in foreclosures. My question is, if these loans are backed by the government, what incentive does a bank have to sell the Note at a discount? How does this all work as I don’t see the benefit to us (maybe Goldman Sachs but not us)? Thanks

@Jessica Wood hello. I’m getting 9%. I had an opportunity to go somewhere else with higher returns but this is a smalller operation and I can call anytime with any question. So I’m learning a lot. Plus they do the servicing (they have a separate service company and make money off that too). I know they are charging the borrower 12%.

As for how I found this company, we have the same accountant. I wouldn’t have trusted them otherwise and went with the bigger company. 

Oh and to answer your question on how I find people to lend to, I don't I just invest with the actual HML who as I said gets the spread and servicing fees from the borrower. I also like that it's in Texas so should they default it's a very fast foreclosure state.

Jessica Wood I’m curious why you say HML is riskier? I’m new but I invested with a HML on a deal where I’m listed on the deed of trust on a property with ltv of 43% in Texas where foreclosure is super fast. Payments are ACH’ed monthly like clockwork. Web portal to check on everything, real professional. (We also have the same accountant) What am I missing?

@Odie Ayaga Hi Odie. It’s natural to see the successes of someone like @Jay Hinrichs and wish that were us. But don’t forget he’s been doing this over 40 years. We can’t be him. We can only be the the best of who we are! 

Just keep plugging away, that all we can do :)  

You make a good point Martin Saenz about someone always wanting to sell their portfolios. I was watching a video of some guy I find interesting who teaches and has a school for teaching English as a Foreign language in Vietnam and he was answering a question as to whether the market is getting saturated. He made the point that there is more people “discovering” Vietnam but people don’t stay there forever. They have their goals and then move on so there will be always be an need for new people. Your point reminded me of that. It’s true actually anyway.