All Forum Posts by: Loc R.

Hi Jon,

Thanks for reaching out. My PT practice has been the center of my attention over the last few months.

As to the trust deed business, I've been buying, but the market seems to be tightening up - there is a lot of money out there and not so many good/great notes. As a result the note buyers, sophisticated or not, are paying more for paper than I am willing to. In the last 12 months I've started to venture a bit more into hard money lending, but that is hopefully just a temporary thing.

How are things with you? Have you bought out all of Texas yet?

Loc

Hi everyone,

Haven't been here in a while - I've been working on expanding my physical therapy practice.

Found a space that will need to be renovated, and was wondering what is out there with respect to lighting?

The space has the standard rectangular tiles with those long fluorescent (?) lightbulbs.

I'm trying to figure out what is the best lighting to use, both with respect to functionality (brightness), initial cost to install/upgrade, and monthly usage costs.

Thanks.

There is really not a whole lot you can do to prevent him from turning the place into a dump. You want to find a motivated payor who eventually wants to own the property outright (and pay you off in the process, interest included).

You should try to improve you position by getting equity somehow. Either cash (doubt it) or perhaps a free-and-clear property that he has in his portfolio.

Everything looks about right - my only concern is what is the actual likelihood that the (defaulted) payor will be able to make good again on (a) the payments, and (b) the balloon payment? There has to be a (good) reason as to why the current note holder has not renegotiated terms with the payor.

You just want to make sure you eventually don't become the motivated note seller.

Happy birthday, Steve. I'll share a bit of advice from my wisdom-teeth experience (I had all 4 done at the same time): Don't let your mouth get infected - it's no fun.

Greg,

There is way too little information to make anything close to a even an initial judgment on the notes.

Whenever you work with brokers, you always have to keep in mind that they're only looking to make the sale. In other words, CYA.

Brad,

Send me a PM and I'll give you copies of the Purchase Agreements and Assignments that I use.

There are many factors a note buyer takes into account when buying a note.

The key is understanding the difference between the discount and the yield. This is a common mistake made by both buyers and sellers.

The discount required to get to a certain yield is going to be a function of the (original) terms of the note. A short-term note will require a smaller discount to get to a yield vs. a longer-term note.

Example:

A $100,000 note at 6% interest amortized fully over 10 years (120 months) results in a $1110.12 payment.

That same note amortized over 30 years results in a $599.55 payment.

To get to a 12% yield, the 10-year note would have to be discounted to $77,381.87. That's a 22.6% discount.

To get that same 12% on the 30-year note, it would have to be discounted to $58,287.30. That's a 41.7% discount.

Al,

I would recommend that you spend a few grand for a beater pick-up truck.

Your Prius will thank you.

If ETC's name is attached to it, then it's probably just their "expensive" version of crap service and incompetent agents.