All Forum Posts by: Liz Brumer-Smith

You'll want to use the same purchase contract you would for your state, and just enter that the seller will be financing. In FL the standard contract has a spot/clause for that, where you can outline the terms, downpayment etc. I would suggest having an attorney or title company draft a mortgage and note for you. I always like to add a first right of refusal clause in there, so if the note holder/property owner wants to sell the mortgage at a discount in the future, they must first offer the discounted price to you to pay off in full.

From there, you'll want to close with a title company as normal, getting all of the proper insurance, etc assuming its marketable through a warranty deed. 

I agree with the sentiments here about rise in inventory. Clark Street Capital has an AWESOME report they put out bi-weekly, and it gives super great insight into the commercial and residential debt markets. My favorite line "excessive stimulus has a way of covering up problems." They believe the distressed picture is really just starting to come into play. 2022 could be the year this starts to unfold, but it could be well after when we start to see an uptick in inventory of NPLs. If anyone else is interested in learning where the market could be headed in 2022 and beyond, the Diversified Mortgage Expo (DME) will be a great 2 day event (March 10 - 11, 2022) that will have the VP of Analytics from the Mortgage Bankers Association, Marina Walsh, as the keynote addressing this EXACT topic.

@Mike Moore I think others have done a great job highlighting areas of potential work that can also help fuel knowledge for this avenue of investing, but it's not required. I worked as a teacher and had NO experience in the mortgage industry when I got started. I applied myself to learning the in's and out's of note investing working through a course and attended as many conferences as I could to build my network of buyers, sellers, and service providers. I think it's 100% viable to learn this business aside from a 9 to 5 job in the field although it can definitely can help overcome the learning curve.

If you're interested there's a great conference coming up about note investing called the Diversified Mortgage Expo (DME) that can help align the who, how, what, and help build your network of service providers as well. Both @Jamie Bateman and @Chris Seveney will be speaking at the event!

Awesome! What is OOS markets?

What house hacks are you trying to use? BRRRR is definitely a great model! Are you able to find worthwhile flips right now given the competition? What market are you in?

As major changes (and competition) continue in the real estate space, I wanted to get everyone's take on what investments they are focusing on in acquiring in 2022. Where are you spending your time and efforts? Are you in acquisition mode? Sales mode? Management and hold? Have you switched strategies because of price or competition? Maybe expanded to new markets? Would love any insight on if you're targeting:

• Rental property
• Fix and flip
• Mortgage notes
• Apartments
• Self-storage
• Wholesaling
• Other avenue

Personally, I'm working on targeting mortgage notes (that's my area of expertise). I think there will be a large influx of distressed mortgages and REOs in late 2022 and beyond and I'm preparing for it today improving my systems and making new contacts. I made a LOT of money in 2014 - 2018 after the Great Recession. While I'm not saying today is a repeat of the past, there is a lot of volatility, uncertainty, and distress in our economy and I do believe an opportunity is coming. Given the residential mortgage market has over 1 million people who are still delinquent, more and more Americans are quitting their jobs, and the coronavirus continues to impact peoples income and work.

I also send letters to private mortgage holders to wholesale (flip the note) or buy it myself. This avenue has been very profitable for me as people look to recoup their money and put it to work to combat today's inflationary environment. I often can get yields of 10% - 14% or greater through this method. Just ordered a new round of letters to go out this week today!

P.S. if you aren't familiar with note investing, I'm sponsoring an upcoming conference called the DME (Diversified Mortgage Expo) which is a great place to learn more.

I know there are a few note investing conferences coming up, including the DME (Diversified Mortgage Expo) which just went to 100% virtual, and then Note Expo which is live, and Papersource which is virtual. Is anyone planning on attending any or all?

DME is end of Sept. 
Papersource is Oct.
Note Expo is Nov.

We're about to take a back a property in Pittsburgh, PA (was a non-performing note). We're hoping it will sell at foreclosure auction next week, but we wanted to gauge what the market would be like if we sold it with the borrower/tenant in place? Would investors have interest for that in the area given the current market competition, and if so what type of discount would be expected to reflect the non-paying tenant?

Awesome! I think it will be a great event (obviously I'm biased as I'm speaking and co-host) but there are really great speakers lined up (like CoreLogic, Mortgage Bankers Association MBA) and big name investors who don't normally speak at events like this. Plus we're working with a great virtual event platform that promotes easy networking opportunities with vendors and attendees. I think will be a super unique event compared to other note conferences for new and advanced investors. Look forward to seeing you there! 

It is virtual this year. Pricing was just discounted to $97 for the virtual event today if you use the code I-AM-IN . The event is Oct 16th and 17th and will be recorded.