All Forum Posts by: Bac Nguyen

@ Will Wiggin - ""20% down 4.25% interest 5 year lock 20 year amortization"

You got it! The few keys thing to emphasize here is  (1) The loan is amortized over 20 years at 4.25% (fixed) so the monthly payment is low - hint, cash flow at the gate  (2) The loan balance (or the balloon payment) is due at the end of the 5-year period.  Thus, before or close to the 5-year period you either refinance the property or sell it.  

Remember "You make money when you BUY"

This is a good strategy for buying properties since you don't spend all your capital (20% down vs. most sellers want all cash up front) and negotiate the terms that are favorable to you, the buyer.  Hint, when negotiating with the sellers - if they locked on the price then you get the terms! 

@Richard Biechler - Congrats!

Cheers,

@ J. Martin, thanks for the info and much appreciated.

@Nichole Stohler - I am very interest to learn the hotel experience and how it differs from multi-family units. 

@ Jay Hinrichs - I am really looking forward to meeting you as I have read quite a few of your posts and such wide range of wisdom.  

This is way cool as we can share ideas and map out who we going to seek out and sessions, etc.

Cheers,

@ J Martin - Thanks for the info. 

BTW, you replied to "James, I have about 20 of these, which is why Arlen tagged me here.. " What you meant by 20 - properties or rooms? Is this AirBNB?  Interest to know more on your experience on AirBNB.

Cheers,

@Dave Van Horn - Hope to meet you there. Just bought 3 notes from PPR, yesterday.

Cheers,

Well, I just found out about this event today. The web site have an option for "discount count". Any discount code that you can share?

Cheers,

@ J Martin - Are you going to talk or someone will present the AirBNB topic at the REI Summit?

PS: Any discount code?

Cheers,

@Ivan Lai - Yes sire, the due diligence (DD) part is the key for the Notes business - either 1st or 2nd NPN. This is where you make or break the business. As you might already know, the guru might teach or give you an outline on what need to be done for DD - but that might not have enough meats on it. Of course, there is an up sale for membership and coaching. I got it, education is a cash cow. Only if, the content is valuable.

FYI, I have not take any classes from Eddie Speed. But, I was invited to one of "exclusive" meeting with him with about 10 others people in San Diego about 4 years ago. But, at that time, he only invest and teaching 1st lien which I am not interest. But, a person invited me is a student of his and he seems legit.

But, frankly, you need to develop the DD based on what they teach, Google it then expand and align with your "buying criteria" as these "criteria" are difference for everyone.

I am "only" investing in 2nd NPN for the last 4 years. Because I LOVE to be the Bank! I have a cheat sheet for my DD. Well, I am an Engineer by day so I need to break down the processed and have a step-by-step so my kids can do it! Why not, it's a FREE labor and they know the Internet better than we, I do, seriously!

I believed in continuing education and learn the new "things" as the business keep involving or keeping up - need to spend money to make "more" money. As you already know, the 2nd NPN is "dry-out" for the last two years and the price keep going up. But, there are still a few good ones out there and you need to dig deep.

For example, Ivan if you want to buy CA 2nd NPN notes, you expect to pay at least 50% on a dollar. In which, the property might have some equity over the 1st lien. CA notes are very high on demand and frankly overate it as everyone love "Sunny California". But a good deal is a good deal regardless where it located. Check out FCI exchange website to find out what they want for CA notes. You in shock!

Cheers,

@ Joe - I lived in San Diego so we technically a neighbor. As Rick mentioned, just search the meetup.com site to find a local REIA in your area. But, if you close to LA area. Then Steve runs on of the REIA in LA. He gets good speakers for the monthly meeting. I drove up for the meeting a few times. His contact is below

Steve Love, Co-Executive Director of Prosperity Through Real Estate

PS: - Actually the site do not allow to post phone/Email. So, you might need to search his company name.

Cheers,

No worries. This is not for investors.

Cheers,

@ Bill Pohl & Evette Larry - Yes, we currently owned this property. Here is the link to the property

https://phoenix.craigslist.org/nph/reo/6160397553....

The sale price is reflecting the "Seller Finance" option and future price which we can carry up to 5 years. The terms and the price is somewhat negotiable.

The property address: 3929 N Dead Wood Drive Casa Grande AZ. 85122

- The sale price is $235,000
- With 5-10% down. The term is 7.5% amortized over 30 years - the monthly payment is ~$1,350. Up to 2-5 years balloon payment.
- With 20% down. The term is 5.5% amortized over 30 years - the monthly payment is ~$1,200. Up to 2-5 years balloon payment.

- The property is available in August 1, 2017.