List of Possible Note Buyers

Thanks Coach, I appreciate you sharing that with us.

Yes, I also appreciate you sharing that with us. I am always at full attention when the coach speaks.
Tell me more! Tell me more! Tell me all of your secrets! Don't hold back.
No. Really. thanks. I'm glad you are here.
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Michael B

These are people that buy notes Pastor Greg. Like when your mortgage company sells your contract to another lender. They get cashed out and now someone else holds the note. Hope that makes sense.

Exactly how old/ reliable is this information you've posted? It's difficult to depend on a long-term list in today's volatile market.

Will be using the names on this list until the next update.

In His Lamblight:

Sonicreindeer

This list was accurate until a few months ago. It is true that today's market will make a large difference on the list I have posted which is why posted the caviot I did. I do not know the success of the list as of the recent turmoil. Try the list and see what still works for you. I post the information as a possible way to start in selling notes.

She is right. Notes that we as investors will usually work with are seller financed notes. When a seller finances us they create a mortgage and a note. The note can be sold in the market.

An avenue that we will use to help us purchase some properties is to ask the seller to do seller financing. If the seller is at all hesitant than we will offer to sell their note for them. How that would work is they finance us, we get the house and we sell the note for the seller.

Keep in mind when a note is sold it is sold at a discount. So, if I use the method above I have to keep in mind that the seller may get less of the face value of the note. You can also sell just a partial of the note as well - in other words you don't have to sell the whole note.

Reading elsewhere I found the following statement:
"These contracts can be used when you are selling notes (the mortgage on the property) " From that I would understand that the term "note" just means "the document that is the mortgage." The dictionary says "a written or printed paper acknowledging a debt and promising payment; as, a promissory note." Is all this correct?

My apologies to all on this thread and especially to you, Coach, for not checking myself sooner. Will be scrutinizing the 'tude of my posts from here on out.

All else aside here, what type of contract will I need to write in conjunction with the note as required in CA, if necessary?

From the time the contract is drawn to take possession of the note to the time of actual sale to realize profit after taxes, how long must you hold the note for the previous owner to redeem the debt against the paper, if the opportunity exists?

What profit margin should the investor expect if the note is discounted?

How could one sell part of a note if the previous owner owns a portion of the note or the title company holds a lien against the paper?

In His Lamblight:

Sonicreindeer

Although I may not fully understand the mechanics of selling notes, I'll utilize the list as I regularly review the comments made on this thread to guide me along the way. Muchas gracias fro posting the list:-)

Although I may not fully understand the mechanics of selling notes, I'll utilize the list as I regularly review the comments made on this thread to guide me along the way. Muchas gracias for posting the list:-)

Also can't a note be something we write up on a piece of property or a car so we can get seed money?

The note is the definition of payment. It notes on paper how the loan will be repaid. What the interest is and how long the payments will go for.

The mortgage is a separate document that is the security to the note. So if the note does not get paid the lender uses the mortgage to foreclose on the property. The mortgage can also be called a lien.

You may find some instances where the note and mortgage are combined for all intents and purposes they are different contracts / documents.

Also the note is not usually recorded. The mortgage is.

You can write a note on anything but if no one gives you money it does nothing. A common use of what you are talking about is to create a note say on property then sell the note to investors. This way you get money. The better way would be to refinance because you will not get the discount hit from the bank.

Hi, I am new to this and would definately appreciate any advice. I own a home in a prime neighborhood, except that I'm in FL and RE Values dropped more drastically here as opposed to other places in the US. Before the market crash, I could have sold my house for 3x what I purchased it for, and in my neighborhood, most sellers got 95% of their asking price in a matter of weeks. Now, people are lucky to get back their loan amounts. One good thing, I don't have a big loan on my house and I purchased it below market value 13 years ago. So, I would like to sell my house, mostly because I don't like the layout of it, buy another one at below market value, such as a short sale or pre-foreclosure, have a lower mortgage or no mortgage, and be in house that can better suit my needs. Is this possible to do in today's market? Can anyone help me? My email is address is Crystallie@****, I'd appreciate any help/comments.

iam new to this can some one help me thank you ron jackson email me at bensdad123@****

One of the great things about a site like this is that you can help yourself. This is like a feast of information that you take. If you want more help Dean has his books as well as a coaching program also. Wow.

Hello all! I just wanted to say that the start of my REI career began in the area of finding notes and refering them to a network of note buyers. In fact, I still do it. It is much like wholesaling, only instead you are selling privately owned paper or "notes" secured by Real Estate. Right now I am currently in the market of finding more people who have sold their homes through carry-back financing (aka seller financing) and are looking to sell their notes at a discount so that they can recieve a lump sum of money now! A lot of the time, most people don't want to wait 30 years to get their money and would probably take a discount on that note so that they can have a lump sum of cash now for present use such as medical expenses, paying taxes, college education funds, or even to use as a down payment on their dream home. Whatever the reason may be, they need their money now, and having a note on their property is hindering that. This where I come in. I have a list of investors that are waiting to submit their bids on your note, all I need is information on what you have!

I also am looking to expand my list of sellers with notes such as foreclosure investors. I feel my company and I can help them get in and out of properties very quickly. If you are a foreclosure investor, or a real estate investor in general, or someone who has just sold your home through creative financing, I can help. If you'd like more information, DEF contact me! I'd love to help you out!

To contact me just post a comment on my profile board, or email me at [email protected] or [email protected], with your contact information so that we can discuss your options! Also, check out my website at www.cffsolutions.com!

What are notes?

That would be like if you had a house and I wanted to get you to owner finance it for me...you would be carrying the note on the house for me.

I will call this agent back today and get all the vital information. He was calling on my add in craiglist about a house for sale that the asset manager indicated his bottom line was `20% off fmv of $320,000. My email address is pruggi11@****. I wish I had more info for you.

Notes are the paperwork that defines how a lender will be paid. When a mortgage is created a note will usually accompany the mortgage. The note will define the interest rate charged, payments to be made, number of payments, and total amount that is due. If the note is not paid the mortgage (the security or lien on the house) can be used to foreclose on the home.

Because notes define payments, amounts and the likes they can be sold for their overall payment value. This creates a return (interest) for the owner of the note. Notes are often discounted to increase the return that the note is paying. For example if a note is paying 6% interest and you discount purchase the note you could be receiving a 10% return. The payor still makes the same payment but the return for the owner of the note goes up because of the discount.

God Bless

Say a contract for deed buyers paid 75000 put 5000 down and u carry 70000 house is worth 80K -85K note is for 20years 641.11 amonth and buyers have been paying for 1 year. Seller owes bank 70K on this house. When a note buyer buys this is he paying the face value or future interest. Would the seller get only 70K less than 70K or could he sell it for 80K or more. I realize this may sound stupid and it is probably staring me in the face. But need to know and knew this was the only place I'd get an honest answer.

Thank you
Donna

If the seller creates a wraparound mortgage then later decides that they want to sell that mortgage on the open market they can do this but there may be some hick ups:

The note will still be discounted regardless of a pre-existing mortgage.

The buyer of the wrapped mortgage may, and often will, require that the underlining loan be paid off. A mortgage investor will not want to be subordinate to another loan. This will create more risk for them.

If there is a note buyer that is interested in purchasing the note without paying off the pre-existing loan they only stand to make the interest / ROI from the decreased purchased of the note.

This would be a hard sale.

I hope I did not confuse anyone. If I did feel free to ask your questions here as well.

Thanks Nate,

So just to be sure I understand the discount always applies to the face value not the future realized interest. Correct.

Sorry I overthinking this I know.

Donna

If any one is looking for some one to buy cash notes add me to your list as I have investors that are approved in buying cash flows so just visit my web site I have listed here for more info or just write me directly.

Shawn

This is a great question. I appreciate you asking. The face value and "future realized interest" are not the same.

Face value deals with the current remaining amount.
For example:
A $100,000 dollar note, 8% interest, 360 payments, with a payment of 733.77.

If the note is pay on for two years the face value or in other words remaining payoff amount would be $98,259.94.
The face value or pay off amount is the number investors will use to figure the discount price.

Future realized interest is not used when deciding the value. In the example before the future realized interest would be $246,544.89 (payment of $733.77 multiplied by the number of payments left - 336).

Your such a good guy. Appricate your time more than u may know.
Thanks again
Donna

Love all this information, but ever since the EDGE I have been trying to pursue purchasing notes. I have spoken with my account and real estate attorney figuring they would have some contacts in this regard, but no luck to date. Any special avenues to pursue this investment area?

Marketing to professionals yields a higher return. Take for example a divorce lawyer. The lawyer is in the middle of the divorce and finds out that the couple has a note they want to sell. To help the transfer / divorce proceeding continue it may be in the best interest of the parties to sell the note. Who are they going to sell to?

Here is a great link for information about notes if you would like. This site should be free:

http://www.noteworthyusa.com/