All Forum Posts by: William "W.J" Mencarow

I just posted in your comment on this in another thread...I don't buy NPNs, I was referring to performing notes. On the few that have gone bad I have been able to work with the debtors instead of foreclosing.  If they were specifically asking me about NPNs, I didn't pick up on that.

Jay, just to be clear, I don't buy NPNs.  I've had a few performing notes turn into non-perf, but that wasn't my intention.  As I alluded to in the podcast, I don't want to foreclose and do everything I can to prevent it -- not letting them get too far behind, working with them to restructure the note, forgiving some penalties, cash for keys, etc.

And you're right -- the early 80s was a great time to buy with owner financing. I bought my first house in 1981, in Alexandria, VA, by assuming an 8% VA loan and was thrilled to find it.

Thanks for the postings.   I look forward to meeting you all at the Note Symposium.  (For us Texans, that would be "y'all").   We're blessed to have so many teachers that have nothing to sell; they just want to share what they do and help others succeed.  Yes, there ARE people like that!  I've spent years finding them.

FYI, I just did a podcast on notes and real estate for the guys at NoteMBA, Robert Woods and Chase Thompson.  They titled it "From The White House to Note Investing," referring to my time with Governor and then President Reagan and on Capitol Hill.  We talked about: 

• What It Takes To Only Foreclose Once In 30 Years
• How The Note Investing Game Has Changed In The Last 30 Years
• Things To Look Out For To Not Lose Money When Note Investing
• And even -- What It’s Like To Work On Capitol Hill

It's at http://www.notemba.com/paper-source-bill-mencarow/

That's last year's link, although it re-directs to the 2016 page:  http://papersourceseminars.com/

Hi Isaiah.  I have a free 7-part ecourse on notes.   PM me and I'll send you the info.

Pari, absolutely not!  I buy performing notes from private note holders (mortgagees).  PM me with your email address and I'll send you some ideas on how to find them.

Darren, I live in TX and buy performing notes here. Of course the yield depends on a lot of factors (type of collateral, lien position, equity, seasoning, note terms, payor credit, etc.). When someone says "I have a note, what will you pay for it?" I tell them that's like me saying, "I have a car, what will you pay for it?" Then they understand that like a car, notes come in all kinds of models, years and condition. For a bank-quality seasoned 1st on a good SFH, good payor, fully amortized over 120-180 months, market interest rate, I wouldn't pay more than 12% yield. But I can think of several investors who would buy that note for around 9-10%. Feel free to PM me if I can help further.

Megan, I've had my short-term vacation rentals for 11 years on VRBO (now part of Homeaway) among other sites.  Eric is right, it depends on your market.  I would add that it also depends on your rental rates, because the upper tier listings are costly.  I have a platinum listing for my most expensive property because I recover the listing cost with just one booking.  But it would take at least half a dozen bookings to recoup the cost on my other rental, so I just have the classic listing.  That and craigslist keeps it pretty full.  If you use craigslist, which I recommend, make sure you keep it at or near the top of the listings.  Also, be aware that since Homeaway was bought by Expedia a few months ago they have begun charging travelers a "service fee" on all their sites (VRBO, Vacationrentals, Greatrentals, etc.).  Most people I've talked to think I am charging the fee, so I have to explain that it's them, not me.  And they are not happy about it.

The Coalition to Save Seller Financing www.savesellerfinancing.org is working directly in Washington on behalf of property owners and note and real estate investors.  It is supported by NREIA and other organizations and individuals.  The more people who join (no charge) the more clout it will have.

I tried to post three possibilities for you, but the BP website won't allow phone numbers or email addresses.  PM me with your email address and I'll send them.