Posted by nnn on October 09, 1998 at 15:41:10:
Yes but I thought this place was for helping newbees
buying and holding is great but
No $$ no buy
I think (hope) the people on this site know this
we thank you for your input
We need to do a little more homework on notes
this is the info asked for,
Little bits and pieces in different answers
thank everyone for their response
This post is for encouragement.
Next step In the buying of a Note? - Posted by jturner
Posted by jturner on October 08, 1998 at 20:37:33:
Let’s say that I have located a note seller and we have negoitated
a price at which I would buy her note. What would be the next series of steps
I would need to take in order to close the deal.
P.S. I am looking to resell this note to another investor.
Thanks in advance…
Re: Next step In the buying of a Note? - Posted by Karen McCall
Posted by Karen McCall on October 09, 1998 at 12:04:36:
I don’t think I would have negotiated price until I found out what it would sell for and a buyer for it. Check out the info on WWW.notenetwork.com
Re: Next step In the buying of a Note? - Posted by Bud Branstetter
Posted by Bud Branstetter on October 09, 1998 at 09:19:40:
All the things that John are saying are correct but I want to add that you need to, and may have, done your homework ahead of time. You should have an idea of who you want to sell the note to, what the yield is that they require, and what LTV they will do. After you negotiate a price you need to get it under contract to be sure you don’t lose it. If you did not do your homework you may have that $20,000 2nd note all tied up for $15,000 only to find out that behind that 2nd is a month old 80K first. You just won’t make any money.
Next step - Posted by John Behle
Posted by John Behle on October 09, 1998 at 24:52:10:
If you are working with an institution, the next step is to call them, get a quote and follow their lead. If you are talking a local or private investor, then they may want more information from you. They may want you to gather some of the information they will need.
They will want to strike a deal with you and then begin the “due-diligence” process, which includes title reports, appraisals, copies of documents, verification of loans and their terms, etc.
So, get the best quote you can from an investor. If this is your first note, try to gather as much information and learn as much as you can - because the ultimate goal should be buying for your own portfolio.
Flipping notes is a job. Buying notes is an investment - and can pay you up front just as handsomely as flipping. So, why limit yourself to flipping.
It’s like being a real estate salesman versus an investor. One can be an attractive, well paying job and the other can set you up for life so that you don’t have to work.
In both real estate and notes, you can invest and still pull cash out when you buy. I can easily pull out at least as much profit as a flipper would make in commission and that’s just the beginning. There are over 117 different ways to profit from notes once you own them. Selling or flipping a note is like killing the goose that laid the golden egg - or burning the apple tree for firewood.