(you will come a cross a lot more confident in your offers or just talking to sellers when you have at least two more nearly as good deals to make) The above action will dramatically increase your chances to be able to negotiate much more realistic deals for you that you will be able to perform (close) on. 

Before I ask this, I know people are going to respond that it depends - and I know that it is true that it does depend - but I'm not asking for an exact answer, just a rule of thumb/ball park of what a reasonable discount rate for determining the price to pay for a non-performing 2nd note?

Louis.The next step was performing market research.

More than one-half of the personal services you perform during the year in all trades or businesses are performed in real property trades or businesses in which you materially participate.

For that price of $400-600k, you could buy 4-6 properties out-of-state easily that would all cash flow and you'd then have the tax benefits and security of 4-6 doors versus dumping all your money into a low- to non-performing property and hoping nothing goes wrong with it.

@Joshua Nudell   not going to buy performing NOTEs for pennies on the dollar.. and the notes flucate with the rebound in the economy..

Most guys will start you off with a little then give you more as you perform and they compare your return and security to their other investments.  

But E&O only covers the agent, performing agent duties, for errors.  

Does it require accredited investors to invest in your re-performing notes?

I need an excel spreadsheet to track where the money is going, when and how much. as well as what task is being performed, started and finished...Thanks