NoteBuyingProfits.com/blog

On how to find Notes:

$2,000 for a $297 per month cash flow.

[Who said you can only buy POOLS of notes?
Who said you need a lot of m.oney to do this?]

Now that’s what I like to hear.

This is what Rick, a www.NoteBuyingProfits.com Student,
is receiving on the very first non performing
note he recently purchased.

Here are more of the details: Rick bought a 2nd
mortgage of $20,000 (so he paid 10 cents on the
dollar), behind a 1st worth $65,000, on a house that
he estimates is worth $130,000. So he’s at
approximately a 50% CLTV ($65,000 1st plus $2,000 he
paid for the 2nd, divided by the value of $130,000).

From Rick’s perspective, this is an amazing return on
his nonperforming note investment.

From the borrower’s perspective, Rick is a … well
actually Rick’s a saint from heaven.

Here’s the way Rick explains it: “The borrower was
actually getting foreclosed on [he had lost his job
and then found employment again, but fell behind]. So
he’s about $2,000 in arrears plus he was paying an
extra $50 a month due to a bankruptcy a couple of
years ago. ” Arrears mean how much he would owe to
bring the loan current.

So his borrower was behind on his mortgage, owing
over $2,000 on a $20,000 note. And he was also paying
$50 more than the original note payment due to a
bankruptcy filing that added an extra $50 each month.
So what did Rick do with this “deadbeat” of a borrower?

He cut him some slack.

” I said to the borrower, “Listen, I’m going to eat
the arrearage, I’m going to eat the extra $50 a month,
and you just pay me $297 a month and we’re going to go
back to the original note and I’m not going to
foreclose on you. “

The result?

The borrower made the first payment and Rick expects
to have little trouble with his remaining payments.

But how did Rick get there?

How did he get started in how to find notes?

Was it tough? Did it take a lot of time? Did he know
what he was doing? Are there more of these that Rick
can do?

===> Listen in this Wednesday, December 10, 2008 at
6pm PT/9pm ET.
Dial: 419-400-0202
Access Code: 468636#

I’ve invited Rick to share his experience
with you so that you can hear how a fellow student
went from the brink of bankruptcy (it’s true, Rick
almost filed bankruptcy himself), to receiving notes
unsolicited from 4 different people at a bank, and a
million dollar investment from a fellow investor. All
within a few short months.

And where does Rick go from here with his buying notes business?

“I’m really trying
to just get one or two a month now. My plan as I build
up is to just get one every other month and then build
up to one a month, one or two a month, like next year,
and start getting into larger pools.”

Step by step, Rick is building his note buying
business. And he’s starting with nothing.

Join us for this f.ree Teleconference this Wednesday.

We have room for 100
on the call, so be sure to be on it.

Again, it’s this Wednesday, 6pm PST/9pm EST.
Dial: 773-945-1010
Panelist Access Code: 260-435-355

You will learn about/from a Student who took * MASSIVE ACTION *
on the course materials of the A-Z Note Buying Course.

Plus you can ask ANY questions of yours.

Be your success.

Dean

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On How to Find Notes:

Do you remember that 1981 hit from Men at Work called
“Land Down Under?” (OK, so I was a big Men-at-Work
fan, I admit.)

Well, what made me think about it was this email that
I just received from a Korean by the name of “Joe”
(that’s what he goes by, I kid you not).

How is this related to buying Notes? Because Joe told
me a little story today that demonstrates one of the
most important lessons in the world of ‘how to find notes‘:
RELATIONSHIPS MATTER

In fact, not only do relationships matter, but
“commonalities” matter. In other words, what you want
to do when you’re looking for notes is to find out
ways to build ties with your seller.

These can be social, cultural, sports-related,
geographical, you name it. Almost any activity, sport,
hobby, pastime, event, book, play, food group or
Australian rock band can be a point of commonality.

Let me share with you Joe’s little gem of a ‘how-to-find-notes‘
story to demonstrate.

Here’s what he wrote to me today:

** I am the owner of Korean Investment club, but we
are not ready to think about buying notes yet. ( for
lack of understanding)
I was solicited last week from big Korean bank to buy
the note from the person in charge of the note.
He ask me to offer any amount for the first trust
deed with face amount of 2.5MIL or more (including
interest will be 2.7 Mil)
Collateral behind is the 79 room big motel with
restaurants. I am really interesting to buy it,
because I know it’s worth around 4MIl.
Is there any way to make it through.
Thanks for your advice.

So what are we looking at here?

We have Joe - the leader of a Korean Real Estate
Investment Club located here in th US. And we have a
big Korean Bank. And that bank has just sent a pretty
interesting lead to Joe.

Does Joe know anything about buying notes?

No - he admits as much in the first line of his email.

So do you think that he pitched to this big
Investment Bank that he would be the perfect guy to
buy their notes?

No - this opportunity just “landed” in his lap. And
from what he writes, they’re offering to him to make
“any” offer on that note.

Now for a moment, I want you to stop focusing on the
fact that Joe might actually be able to offer some
fantastically low bid on this note, like $1Mil, and
actually close this deal with this bank. That could be
incredible, yes, if the value of the collateral is
really $4Mil and if the borrower’s not performing on
the note and Joe can foreclose on the motel.

But hang on a minute. I want to point out something
that is so simple that you probably glossed over it
already, thinking that you’re supposed to be looking
for something complicated.

What kind of a bank is this? Korean. And where’s Joe
from? Korea.

So the fact that this note, which is on a California
property, happens to land in Joe’s lap, should
actually come as no surprise.

Very simply - banks often want to sell notes to
people that THEY CAN TALK TO.

And sometimes, the people they can talk to look like
them, talk like them, act like them, do business like
them, live like them, and entertain themselves like
them.

Chances are: even if I were Mr. Well Known Note
Investor and I found a way to that Korean Investment
Bank, I would probably NEVER GET THE SAME RECEPTION
AND CREDIBILITY that Joe has.

You see, they’d RATHER deal with him than you or me
because Joe is one of them in a way that you and I
never will be. So the process of “getting to know one
another” for Joe and this bank will always be a whole
lot smaller than the same process for your or me.

So get out and start applying this Note Buying Tip
101.

Find the Commonalities between You and your
Sellers.

Go find someone who speaks-a your language, and then
see if they have Notes for sale.

Talk soon,

Dean

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On how to buy notes & researching title:

I hope you enjoyed your turkey on Thursday!

If you are following along in our 8-part Webinar Series on
how to get you jumpstarted to buying your first note
as part of the Private Access Club (PAC) (f.ree 30-day Trial,
hint, hint), here’s an

* * * How-to-Buy-Notes EXERCISE FOR YOU TO REVIEW * * *

Find out as much as you can about what (and who)
is on title for:

43 Poplar St, in Old Town, Maine

Follow the instructions in Appendix B: the Title
Checklist from the Roadmap that you receive as part of
the A-Z Note Buying Course (in case you
haven’t ordered it already - you are getting 25% off
until including this Sunday with SPECIAL CODE ‘tg’).

Actually, I just realized that the title check list is part
of the free excerpt of those 23 pages worth of
check lists in the course.

So, check our Note Buying Checklists.

And in the coming week’s Private Access Club Session
we’ll review this together and compare results.

===> This is your opportunity to learn how to review
title on a property, and to compare notes with me as
you go.

Learning how to buy notes BY DOING.

Remember, this is the 2nd step of 8 in launching
yourself into Note Buying. Step by step.
(And all previous webinars are neatly stored in the
PAC members area for later review for you…)

And in case you don’t have the A-Z Course and want to
follow along without it, not a problem
(though you won’t get as much out of it).

Going through these steps is a VERY useful exercise.
Guaranteed.

So, join me next Wednesday at 5pm.

(Want to get a taste what those how-to-buy-notes webinars are like?
Check out the week 1 webinar on ‘How to Determine the Value of any Property’.
Accurately - without leaving your couch…’
93 minutes of no-fluff info for you. Absolutely f.ree.)

Somebody will buy those non-performing loans and profit
from them. May as well be you and me.

And there are more nonperforming notes around than any one
person or entity can handle these days…

Talk soon,

Dean

=================================

* Check out our NEW Note Buying Forum

* Ready to REALLY get down & dirty?

‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box
-> 16 hours+ of Video Training, 23 pages of Note Buying checklists, a complete 8-Week How-to-Buy-Notes Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog. (Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

=================================

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How to buy REOs - Comparing REOs vs. Nonperforming Notes

It’s a tough choice, I know.

And I’m sure some people look at nonperforming notes and
say “why would I EVER want to own paper when I can own the real
estate for soooo cheap?!”

Well, yes. It can be cheap.

Well, yes. It is real property as opposed to a debt
obligation.

And yes, you can get rid of it pretty quickly if you
price it right.

———————————————————————

* * * So why shouldn’t everyone drop everything they’re
doing and chase REOs? * * *

———————————————————————

1.    Valuation Risk.

You’ve gotta nail the home value,
and take good care of evaluating interior condition
here. It’s one thing to find yourself with a lemon
(e.g. loan), where you have several ways to turn the
lemon into lemonade (e.g. get borrower to make
payments). It’s quite another when you have a vacant
property, to try squeezing sweet juice out of this
lemon. Can obviously be done, but you should know your
area values and your interior condition much better when
buying REOS than when you’re buying notes.

2.    Purchase Risk.

They can be a time waster until you
nail your sources! Usually 2-5 brokers deep in a
chain, at least one ubiquitous “attorney” who is a
fraud and huckster claiming he or she is (not has, but
“is”!) a “mandate” for someone else.

3.    Deal Risk.

A friend of mine just spent 2 months
chasing one deal of 16 REOs. He just closed on 1 of
them. All the others were pulled by the seller as the
agents (all but 1 were listed) got the properties into
contract. Or they were lost to a competitor since
there were 3 brokers in between him and the seller.
The one property not pulled was … you guessed it … the
one that wasn’t already listed. The “loss ratio” on
note pools - in other words the rate at which notes
are pulled from a specific pool - aren’t as high by
any means. (One day, ask me about the west coast pool
that we lost!)

4.    Discount Risk.

The discounts that you typically
hear on REOs may not be quite as juicy as you’ve been
made to believe. Unlike a “sweet” note deal that
closes in the 30%’s, REO prices in that range are
typically a pipedream. But you’ll hear pricing that
low on a regular basis.

I’m not panning REOs by any means.

Just jump in with your eyes open, and don’t get
fooled by all the hype that you’re reading about
the REO deals to be had right now.

Talk soon,

Dean

========================================

* Check out our NEW FORUM: www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’.
-> 16 hours+ of Video Training, 23 pages of note buying checklists,
a complete 8-Week How-to-Buy-Notes Roadmap,
an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.),
Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at our Note Buying Blog.
(Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

=================================

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