All Forum Posts by: Sarah Dawson

@Dan Deppen thanks this is helpful. I’m your experience what are the most common issues you tend to find?

I finally found a PN I would like to make an offer on!  I know that when I offer on a property I can easily not move forward with anything I find with an inspection clause.  Is there something similar in the due diligence period for notes?

I would love to hear some thoughts on a potential partnership with a note.

I have a potential PN to purchase for 80k on an UPB of 112k. This is a duplex that would rent for 600 per side and current value 117k.

It’s close to me and I have driven by the property. It looks to be a solid investment to me.

I am considering a partnership to start with my first note. I would be 50/50 with a friend who is a RE novice. My husband and I have 18 doors in our area and have a PM for most and self manage a few. We have owned property for about 20 years and have some experience.

I would want a formal partnership agreement drawn up by an attorney. I am not sure if I can find one in my area that understands notes.

What would you be sure to include in an agreement?

Thanks in advance for any advice!!

I am also wanting to hear what recommendations there may be about states that are good to focus on for new seller financed performing note investors.

I am planning on purchasing a list and need to define some criteria.

I am in Ohio and wondering if I should look in areas where I can drive - OH/IN/MI/PA. Do any of these stand out as good or bad to focus on as a start?

What would you use as a min loan amount for a particular state? I assume it varies.

I just saw another investor posted this link that I thought had a lot of useful information by state. I need to spend some time studying the details but thought I would share http://www.realtytrac.com/real-estate-guides/foreclosure-laws/

I am also thinking of loans that are 18 months + old.

Any input on any/all of this is helpful!

I have heard about pending changes to Ohio law with regard to lease options. I did a quick google search and didn’t see anything obvious to help me understand more.

Can anyone here help?

Any input is appreciated!

@Chris Seveney

Yes good point, it is a job. I am thinking of the note business as a career change. I am also seeing note investing for myself as a better option than expanding the current buy and hold portfolio.

I really had no idea how long it would take to ramp up my knowledge, network and at some point actual skills!

Thank you for all of your replies. Now it’s time for me to take some action!

@Bob Malecki Thank you for the reply. I see great possibilities in the note investing strategy for my goals.

I am all for networking and conferences. Before I go head long into the strategy with time and money, I would like some information that my plan is viable.

Is there a way (or a company) that can estimate the volume in the market for the seller carry back notes?

For housing I can see inventory on the MLS and in my area. I can hunt and peck at addresses on my county website and stumble on what looks like a private mortgage but it's not much to go on to draw a conclusion on the inventory.

I would be thrilled to hear any and all advice from the BP community!

@Chris Seveney

As an investor thinking about starting a note investing business my biggest fear is how much inventory is there to find? I don’t want to spend thousands of dollars and my precious little spare time if the numbers of viable notes is so low I cannot find AND close deals. I have gotten some good education , have note investing contacts and yet I am unable to pull the trigger on buying a list and marketing because I am just not sure how many are really out there!

What do you all say? My focus is seller financed performing notes so I can learn the business first with lower risk investments. Are these a needle in a haystack or do more like a Starbucks, there is one on every corner?