All Forum Posts by: Terrence Evans

FCI, Madison Mgmt to start

But why would you self-service a loan when you could just hire someone to do it for you? It's only like $20-30 / month. For me, I don't want the hassle.

You might. The state requirement is that you *may* need to do some type of license. You should check VA requirements.

Some states are more hard core than others so you *may* be able to skate by if it is just 1 SF note (/ year).  Chris is in your state so he should know.  But again... check.  The only thing I am licensed to do here is drive a car in the state of California.

For best results, following Dodd-Frank and CFPB compliance rules is ALWAYS recommended - 1 note or 100 notes.  Also helps with future resale to investors.

Some tips:
When originating,
Be compliant with Dodd-Frank ATR and perform a full qualification of the borrower (credit
check, SSN, proof of income, borrower ID, bank statements, etc.)


If you choose to service your note, it is recommended that you do all of the following:
o Keep ALL original documentation in a safe and secure location
o Collect the payments using a documented method (checks, money orders, etc). Cash is
not acceptable.
o Maintain Payment Record with date paid and current balance
o Send monthly balance statements to the Borrower
o Escrow the loan (for County Taxes and insurance)
o Track and verify any superior liens on the property other than your note
o Submit IRS Form 1098-INT to the borrower by January 31st of every year
o Notify borrower no later than 3 months prior to any principal reduction payment or
balloon payment due
o Observe borrower care of the property

Good tips..  I wish BP built up their education for notes like they have for everything else.  Because people are asking the same ol questions.

@Andy Mirza: Not even if it is vacant?  I tend to believe that if it is vacant and the prop is very underwater, there is little desire for the borrowers to redeem.  So I think - to hell with the redemption period, under certain circumstances.  But not having to deal with it at all is easier however.

I imagine that it is a good intro/primer for folks who are curious about notes.  However, it is just an hour long.  If you think you will know everything you need to know about the note business in an hour for $14, then I have several bridges for sale.

But for those who are serious, I can recommend several people who offer more in-depth note classes.

yeah I only submitted 1099-INTs to the partners.  They have to figure out the rest.

Yeah get a CPA who has done taxes for note investors.

There is INT income plus some accounting for the discount (from what Ive been told).

http://www.note-summer-school.com

Mortgage Note Summer School is the brainchild of Terrence Evans, founder of Terreva Investments and the Monthly Brunches of Notes meetup group based in metro Los Angeles, and Saprina Allen, note industry veteran and President of Main Street Asset Solutions, Inc. It was conceived first as a natural progression of Terrence's meetup group and second as a means to assist new, struggling note investors.

Neither Terrence nor Saprina are full-time workshop presenters (aka "gurus") who hide out in their ivory towers. They are both active investors who are dedicated to integrity and transparency. MNSS attendees will hear the unfiltered truth and insights that Saprina and Terrence can give. Attendees to MNSS will learn the same processes, tools, and techniques that they use in their daily investing lives. Their ultimate goal is to help attendees understand the nuances and best practices of note investing (there are alot of them) so that they can be successful without breaking the bank. Straight Talk. No BS.

Workshop Agenda

• Mortgage Notes—An Overview
• Getting Started
  • Funding Sources and Self-Directed IRAs (Conducted by Belinda Savage)
  • Entity setup (Conducted by Susie Berg)
  • Asset protection (Conducted by Cheri Hill)
  • Establishing your team
• Sourcing Notes / Evaluation of a Tape
• Performing Proper Due Diligence

• Evaluation of Potential Exit Strategies
• Closing your note deal
• Note servicing and managing your borrower
• Executing your Exit Strategy
• Staying in Compliance with Regulations / Potential Challenges to Note Investors