All Forum Posts by: Stephanie T.

Marc, once again you've provided very helpful information. You've confirmed my original instincts and I'm taking in the insight you provide.

Thanks for your feedback, Marc, and the checklist of things to ask the next time around. They are definitely a bank and they wanted to sell the note. I met with them in person and this note info was sent to me after our meeting.

You read correctly, Steve. That was my question, too. I brought this to the bank's attention and was told that I was getting a 10 cap and that they didn't feel the need to budge on what they were asking. Am I missing something?

I am totally new to the purchasing of notes. I have recently begun working with local banks in gaining access to their non-performing assets/notes before they're handed over to brokers. One bank recently sent me the following opportunity:

- Single blanket note backed by 32 condos units in major metro Texas
- 90% occupied; avg $700 monthly rent/unit
- Current full retail appraisal $1.4m (bulk appraisal $900K)
- Interest, fees and delinquent property tax $170K
- NOI $1.47m; 10% cap rate
- Unpaid balance $1.165m
- Asking $1.2m

To me, this doesn't look like a good deal given (a) the fact the note is backed by condos which some investors consider to be a risky investment (b) there is such a slim LTV margin, especially if one assumes that the appraisal is overstated and (c) if one were to decide to foreclose on the properties, the numbers just don't work.

Since I know very little about notes I realize I may be looking at this through the wrong lenses so I'd appreciate any comments/input from BP seasoned notes experts!

I will definitely follow up, Edward. I've got an aggressive and highly experienced short sale negotiator (my sister who's a broker agent in Nevada) on the job and a great listing agent who turned on a dime for me today to get it listed, etc. I'm optimistic and do feel I made the right choice, even if I have to step aside in the end and let a retail purchase happen.

We've submitted a short sale package and are hoping for the best.

Good advice, Jon, all. Thanks!

I appreciate the frank advice, Don :)

I do have someone on my team who could do this. I've just never attempted one this late in the game. Is a lease buyback a bad deal? I don't plan to attempt this, but this is something the homeowner is being offered by another "investor".

A homeowner called me today and says that auction has been scheduled next Tuesday, September 7.

Here's the scoop:

$92000 (includes $14K in arrears, bank and attorney fees)
Delinquent HOA $1000
Delinquent Property Taxes $2100
Delinquent water bill $1,200

Comps aren't really strong...could probably sell for around $100K.

Is there anything I could do for this homeowner. I'm thinking subject 2 or short sale. I don't fully understand lease buybacks so I'm nervous about that. Don't want to put her in a worse situation. Thoughts, anyone?

Thanks!