All Forum Posts by: Tracy Z. Rewey

Quote from @Jamie Bateman:

@Amaris Benjamin any of the options @Chris Seveney mentioned would be solid starting points. Also, Fred and Tracy Rewey have training specifically geared toward note brokering. Noteinvestor dot com. @Tracy Z. Rewey

Thanks Jamie for the mention. If you want to refer notes to investors, the key is to get good at sourcing deals.  Most off-market type deals will come from mom and pop seller financed notes. Trying to broker any type of bank paper or portfolios will be very competitive and difficult as Chris mentioned.

@Chris Seveney So true.  When I was on the institutional side we would require a drive-by appraisal (since we couldn't get inside the property on an existing note). The BPO is so subjective and dependent on the quality of the agent performing the analysis, compared to an actual appraisal by a licensed appraiser.  A BPO can make sense if there's been some seasoning with obvious appreciation/value increases and you want to be sure the building is standing. However, it can miss the mark in other situations.

Great input @Brandon Plombon Cash Flow is king on commercial and investment properties.  Started the list for bread and butter residential (which makes me realize I should put that to the description). An add-on list or commercial, investment property, and land would be a great addition. Thanks for the idea.

@Brandon Plombon

Hello BP Note Investors!  We all have our "go-to" list of questions we want answered before buying a note.  I recently put together a Baker's Dozen of 13 questions I like to ask as part of due diligence (because I couldn't keep it to a dozen).  Wondering what you would add?

1. How long has the buyer been making payments and are they current?
2. What is the current value and condition of the property?
3. How much equity is there (LTV & ITV)?
4. What is the creditworthiness of the buyer and are there any bankruptcy filings?
5. Is there a servicer collecting and validating the payments?
6. Do the documents match the terms presented for sale?
7. Are the real estate taxes paid current?
8. Is the Property insured for fire and other hazards?
9. Is there a title policy and updated title report?
10. What is the lien position and what else is owed on the property?
11. Who is the current holder or seller of the note being purchased?
12. Where is the original note and will it be delivered at closing?
13. What is my overall risk vs reward for each exit strategy?

@Paul Riley I have a performing CFD in my self-directed IRA I am considering selling for another investment opportunity. It is in High Point, NC with good equity and seasoning.  If you buy CFDs feel free to message me for details.

Quote from @Jamie Bateman:

Quote from @Mary Joe:

Quote from @Jamie Bateman:

I have a blog post on my site comparing investing in rental properties to investing in notes. That may help you but I’m not 100% clear as to your question, to be honest. 

 @Jamie Bateman  can you post the link to your blog post?  I would like to educate myself  to see if notes investing is suitable for me.  Thanks

@Mary Joe Unfortunately that could put me in BiggerPockets jail. However, it is easily accessible on our website. 

 Jamie - that made me laugh this morning.  I've made that mistake and have used my one get out of jail free card!

@Marc S. Welcome to the world of note investing!  @Marco Bario is right - there are so many options on the buffet of investing and paper/private notes/creative financing are one of my favorite buffet stations.  Take a sampling of what you like and then focus in on a niche as @Jamie Bateman suggested.  You might move on or you might stick with your favorite.  For me note investing stays my favorite after 30  years of sampling!  I have a helpful article with 21 Tips for New Note Investors on my blog you are welcome to read.  It is a great starting place.  Let me know if you have have questions.  We are here to help.

Quote from @Chris Seveney:

@Burt L.

Sorry or hear about your loss. Speak to an attorney but I believe the checks should still go to the lender who is deceased. That would then potentially cause her to commence with probate as the banks may not let her cash the checks.

Excellent point Chris.  You want to believe the heir will do the right thing and yet people do some crazy things. Plus a person doesn't know what other heirs or creditors of the estate might make claim to the assets.

@Burt L. You "unpack" pretty quickly! Thanks for the clarification and makes sense.  I am sorry for the loss of your friend.  I commend you for honoring the commitment to make the payments.  This is one of those times a third party servicing agent would really help provide a level of protection.  It might be something to consider to be sure you get the proper credit for your payments (both timely receipt of the payments and the interest paid).  While servicing is usually setup by the note holder, it could potentially be an option for you to setup as the note payor/borrower.  I'm guessing your are doing this, but just in case, be sure to keep solid proof of the payments being made.  Down the road, if you ever think the daughter would like to sell her interest in the note, please feel free to reach out to us.  We might be able to facilitate or give her some options.

@Marco Bario I'd buy that note at a 10% IRR in my Self-directed IRA as well! With rising interest rates and inflation I'd agree it is better to stay at 10% IRR. Like @Chris Seveney I prefer 12% but for a solid equity, credit, seasoning note the 10% makes sense.  So much depends on a person's cost of funds along with the expense of acquisition and servicing/management/enforcement.