My Personal Experience on How to Buy Real Estate Notes
Check this out – I had a conversation with a friend of mine who is a note broker. We talked about a note pool that consisted of 23 nonperforming loans, both 1st and 2nd mortgages. It was worth $3 million.
And after reviewing of the loan papers I placed a $1.1 million offer to buy the real estate notes. The very next day my bid was accepted.
I know what you are thinking “that’s great for you but I can’t spend any more than $20,000 right now, I’m out of my league…”
My original bid was for 6 non-performing notes in this pool. And the seller told me I was on the short list based on my bid on those 6.
Bid on what you want. If you only want 2 real estate loans at $50k per note, submit that offer.
The Point I’m Making On Real Estate Note Buying
You never know ahead of time whether you’ll be able to pick off a few loans or not, so just go ahead and bid anyway!
Anyways, back to the story…
Then, a day later – I get a call from the bank selling me the real estate note pool asking me if I’d be interested in an $8 million pool of non-performing notes that they’re sending out in another month, out of which I can probably “cherry pick” the notes I want.
Ahhh… you see why I like note buying?
Isn’t that cool – you meet someone one week and a couple weeks later they’re sending you more and more real estate note opportunities! Compare that to having to CHASE DOWN your next ‘real estate investing deal’ (buying/finding a property).
How to Find Real Estate Notes – Key Point
When your closing deals in the note buying business, be dependable. Close when you say you will and pay the price that you bid…a lot of investors will think about you when they have a future note buying deal. Track records count.
That’s an efficient way to build your pipeline of note buying deals – and that’s what makes the non performing note business so attractive – for this fraction of Real Estate Investors out there who understand how to buy real estate notes.
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