All Forum Posts by: Terry Royce

Recently I have talked to 2 investors one in my local market, and another out of town that have bought some smaller packages of 2nd position non performing notes.

Both investors have stated that the strategy is to make sure the 1st lien hasn't started the foreclosure process, and then try to either restructure the note and get the borrower paying again, or to work out a payoff. If neither works they can start the foreclosure process ahead of the 2nd which protects them, and then they can foreclose and sell the house. One of them stated that even if the 2nd gets foreclosed on they can file a deficiency judgement on them and or sell to a debt collector to get repaid. 

I am sure this is a big numbers game, and some of these will work out, while others have to be written off at a loss. 

I guess I am just trying to figure out, more about the process, and figure out where the holes in the above strategies lie at. It seems like it would be a great strategy to get some passive income going that is a similar but less hands on strategy than rentals.

I'd love to learn more about the process and both the upsides along with the pitfalls.

Has anyone had success raising private money by building a website to funnel leads in your local market?

I am looking at putting a site together, but trying to gather information before moving forward.

Is it in the interior, or is it bumped out from the exterior?

What level of investor carrot are you guys using?

Welcome! I'm in Baltimore.

Dont let the lead issue freak you out. Get a lead test with XRF and go lead free if possible. We are making all our properties lead free now, not a huge deal expense wise typically.

I have 2 properties that are getting ready to Settle in the next 30 days, I would like to do a 1031 Exchange either into another flip or into rentals. I have read conflicting info on this topic in regards to flips, can anyone provide more insight or direction? Thanks!

@Alan

@Alan Charles - if you have tenant turnover/evictions with short term (1-2 yr) tenants, higher than average maintenance costs, repair costs, and loss of rent (during tunrover and nonpaying months) needs to be taken into account.

I prefer areas that are slightly more expensive, where I can get better longer term tenants, they are easier to rent, and Im ok with going there at night.

Without having specific areas/neighborhoods you are looking at it is hard to provide better advice.

Good luck!

Look at all these Baltimore peeps in the house!!! My wife is an investor friendly realtor also, we've been doing business in Baltimore since 2007 and know it well. I wholesale, Rehab and have some rentals. Depending on your strategy, we can help.

I've always wanted to own property in the carribean