Posted by Mark R in KCMO on March 25, 1999 at 14:43:00:
Reif,
It always seems so suprising when the simple common sense things work so well.
Aint it great!!
Mark R in KCMO
Is $1,000,000 A Month Still Practical? - Repost - Posted by MN~Chicago
Posted by MN~Chicago on March 24, 1999 at 20:59:58:
John:
I have spoken to someone whose house is
fully mortgaged at $400,000. She is willing
to go through the process of buying notes
to use as substitution for collateral as a
means for lowering her payments.
My explanation was to buy notes, averaging
a 17% yield, and get a new mortgage at a
much lower cost in order to pay for the
notes purchased.
The cash flow from the notes would pay her
current mortgage payment, and the new, lower
mortgage to be paid would be lower and
represent an out-of-pocket savings.
Her next question was, once having done that,
why not do it again and again until she had
no mortgage to pay? Sharp lady.
I also discussed your “fun with bankers” idea.
She talked to a banker friend who was willing
to help. The three of us are having lunch
next week to see where this can go.
If the banker is willing and able, I need to
be able to generate some note purchases very
quickly, which prompts my posted question.
You have frequently stated that agents are
the best source for notes. I would like to
use a focused rifle-shot approach to develop
a note business. Is the $1 million/month
approach still possible? If in using it, are
yields of 18%-20%, on average, realistic?
After posting this, I saw your response
about yields and how your way of buying
notes makes those yields possible. I inferred
the only wat to get those yields was to buy
notes with no competition, through agents,
for example. Correct?
Precisely what kind(s) of question do I
need to ask an agent to get the MLS downloaded
to hard disc? I have discreetly asked a
few, but none were willing to pursue it.
Do I need to go to a broker’s office with an
agent at night to get this done? I have an
agent who may be willing to try, but I am not
quite sure how to instruct the way to do it.
Related to this effort, where does one look/find
note portfolios for purchase? What kind(s) of
person has to be sought out to buy portfolios?
Also, do you still maintain your note network?
Many thanks,
Michael Noonan
Re: Is $1,000,000 A Month Still Practical? - Repost - Posted by John Behle
Posted by John Behle on March 25, 1999 at 22:00:42:
The “Million a Month” article I posted was related to buying properties using paper, foreclosures, split wraps, rehabs and other creative real estate acquisition through the use of agents.
As far as paper goes, agents are one of the best sources and yes, the key is getting there first, being creative, creating paper and solving problems.
Getting access to the MLS can be done through an agent or in some cases you can tie in to the system yourself. I am a broker so my access was already there. I downloaded the database because it wouldn’t let me search for what I wanted. There was no “option” to download the database, I had to trick it and capture the screen text as a file.
The note network was a bit of a predecessor to the internet. Actually we started building it a dozen years ago, but it was pre-mature at that time (the internet). There are several versions of what we had that are out there right now. The largest is probably Russ Dalbey’s www.notenetwork.com
Portfolios are out there, but you’ll need some ready cash. I’d just start one deal at a time for now.
Re: Is $1,000,000 A Month Still Practical? - Repost - Posted by Reif
Posted by Reif on March 25, 1999 at 24:06:30:
Don’t know how this will pan out, but I was in an escrow office today (still trying to sell my condo from hell) and they have a table where anyone can put a business card or flyer. I talked to the manager and told her I buy notes.
I asked how often she sees them.
She said, “Oh, I see them, people ask me about selling them. Make sure you have your card over there.”
That’s one little escrow office. You can bet I’m going to start going to more of them.
Mine’s the only card that mentions buying notes in that office.
Reif