So, here are the “main steps” to getting going in NPNs as it relates to my strategy as I see it:1.Find prospective NPNs for purchasing [obtaining from inventory of a company like Granite]2.Perform due diligence on the NPNs [understanding the defect and why note is now nonperforming]3.Analyze the NPNs that survive diligence [crunching numbers re upb, cost of servicing, etc. to see what max price I can pay while still having a reasonable chance of obtaining my desired yield]4.Negotiate and purchase the NPN [finding the “highest price I will pay for it”]5.Park the NPN at a servicer6.Instruct the servicer to contact the owner and begin rehabbing the NPN7.If the owner is amenable and an agreement can be reached, monitor the note until it is seasoned and then begin marketing the rehabbed note8.If the owner is not amenable or an agreement cannot be reached, foreclose on the collateral9.Regardless of which avenue was taken (either selling the rehabbed note or foreclosing), go back to step 1So here are my questions:1.How do I ensure that my steps 2 and 3 are thorough?

Here is how I came up with the solution:30,000 sq. ft: 2.0M-1.75M = 225,000... 250,000 * .7 = 175,000 ... 1.75M + 175,000 = $1,925,000 (fair value of 30,000 sq.ft building at 8.7%)40,000 sq. ft:2.5M-2.25M = 250,000... 250,000 *.7 =  175,000 ... 2.25M + 175,000 = 2,425,000 (fair value of 40,000 sq.ft building at 8.7%)Now to find fair value of building w/8.7% Cap rate at 33,000 sq.ft:2.425M-1.925M = 500,000 ... 500,000 * .3 = 150,000 ... 150,000 + 1.925M = 2.075MSo this makes me wonder, do real estate investors use this when trying to determine fair value for multi-unit deals?

That could be a much better experience than a "phone drone".We just want the seller, at every step of the way, to feel like they have found the solution to their problem (us), so they will stop searching for other investors (yes, they do that) and engage with us.Think about creating a great experience for the seller.  

We train investors to be SOLUTION PROVIDERS for sellers with a bad house or in a bad situation.  

Serge that is great this deal you were telling me about awhile back is coming to close.I might monitor ownership for a few months and implement the plan over time.What do the new tenants units look like compared to the loyalty tenants that have been there for a long time??

The solution I've come up with so far is have them purchase the property, and then lease option it to me.

Obviously not a good solution anymore, just reminded me of it.

If I knew of a solution, then I could start buying and repairing these houses. 

Good point Walt, that is a common solution and nondisclosure of matters is usually part of the deal.

People will "google you" and an internet presence has more weight than an unknown website.The letter should be brief - the main point you want to come across is that you are here to give them solutions, help.