All Forum Posts by: Samuel S.

Thanks Sarah! 

Hey BP Folks,

I am just curious to see if anyone knows of good portfolio lenders in Michigan? If not, any good national portfolio lenders?  Any help would be greatly appreciated!!

Sam

Right now I am looking to buy performing notes that are in the rough geographic area of Michigan..

I currently have a small network automotive professionals in metro Detroit who are looking to do the same, so we were thinking of pooling funds...I am also a real estate investor, but a newbie into the note world- Just been reading and learning as much as possible lately.  

Would love to connect with like minded people in the note arena!!

Hey BP,

Was just curious to see if anyone has worked with, or knows of, good note brokers/brokerage firms? I am familiar with all of the online sites (fci exchange, note mls, etc) but didn't know if there were actual brokers out there who have "pocket listings" of some sort, that they use to broker to a select pool of investors?

Thanks!!

Thanks everyone for your advice!! I know that I've only scratched the surface here, but this niche is definitely worth pursuing due to the fact that it IS real estate investing, but with less headaches (tenants, toilets) and easier scalability.  

It seems that for a first timer, starting off with purchasing performing notes would be the way to go? Especially those that can be purchased at a discount?

Thanks @Roma Korenyuk! That definitely clears things up...

As far as due diligence is concerned, if the note was in first position, would the diligence only need to be done on the borrower for the most part?  Since any other lien associated with the title would not trump the first position lien?

Hey BP,

So say I was to purchase a non-performing note, and ended up having to foreclose on the property...What would be the ballpark costs associated to execute the foreclosure? Would it be roughly the same as when traditional banks foreclose?  

I am just curious, as I feel like another exit strategy would be to just rent the property if the market value price was not worth selling?

Any input would be greatly appreciated!!

Hey BP Folks,

So I am just trying to understand why I've seen so much debate on why some people would rather get a non recourse loan vs a recourse loan...Especially when non-RC are worse terms, higher rates/fees etc..

At the end of the day, I could have a recourse loan but never be liable for a deficit as long as I have PMI, right? Because if I foreclose, the insurance will just kick in for the deficit, regardless of the state?

On the other hand if I DO NOT have PMI but have 20% equity built in, and end up getting foreclosed on, the chances are very slim that there will still be a deficit remaining after the foreclosure sale?

If the above instances are true, then is there really that much risk in having millions+ dollars of investment debt?  Any advise would be greatly appreciated! 

Thanks for your input Tom!

I guess my question was is it more feasible to either buy the first house all cash (where the cash out refinance would be the first and only loan, and the cash pulled out would go toward purchasing the second properly all cash, and so on). Or instead, forming an llc and purchasing, say, 10 houses, all with 5% down conventional loans.

Hey  BP Folks,

So I am looking to structure a deal with a family friend whose an active investor, where he would be providing $100K in startup capital.  I would be the active manager, basically running the entire business (PM etc).  The investor would be a passive manager, and we would split the profits 50/50.

In this scenario, would it make more sense to utilize the "cash out refinance" strategy (purchasing a property all cash, renting it out, getting it appraised, pulling all the equity out, and repeat) OR would simply getting multiple conventional loans be better? 

I am leaning toward the cash out refinancing, as it would allow for purchasing properties at a discount, adding value in some way, getting it appraised for higher than the purchase price, and having the chance to pull out more cash than what was put in.  Although with refinancing costs and seasoning periods, I don't know how quickly/efficiently this would actually play out.

Any advice would be greatly appreciated!!