Q: Can I finance a note purchase if I have bad credit? - Posted by Richard Adams

Posted by Richard(WA) on March 26, 1999 at 20:03:00:

Thanks John! :slight_smile: I’d love a repost of the resources you put together. I found the article you mentioned and I spent hours searching the database of past posts. I’m still unclear on a number of things–guess I’ll just have to send away for some of your books. :slight_smile:

So basically, you are telling me it’s not so much my own credit the lenders look at, but the credit of the original borrower (the guy paying off the note), in addition to payment history, and the value of the underlying collateral, am I right? Are most of the lenders for purchasing these notes institutional or are they private individuals? How do I go about locating these lenders? As a beginner, is it better for me to deal with institutions or individuals?

I definitely want to order that book that contains 117 different sources of loan sellers. Which source, in your opinion, is the best one for a beginner to start with?

I love this site! :slight_smile: Everyone who has replied has been great. :slight_smile: I love the family atmosphere and the positive “can-do” attitudes! :slight_smile:

Q: Can I finance a note purchase if I have bad credit? - Posted by Richard Adams

Posted by Richard Adams on March 25, 1999 at 04:16:50:

I am brand new to this forum–and to investing in notes in general. I am studying everything I can in preparing to get started in note investin. The idea of financing the purchase of a note is a new one to me and powerfully attractive. But I have a problem; the same problem I’ve encountered in tryin to buy real estate: bad credit.

I’m already working hard on getting the bad credit cleaned up (most of it is due to a songle defaulted student loan from 1984). I am disabled and low-income, living on disability checks. So it’s very difficult for me to get any kind of conventional financing.

So is there a way for me to purchase notes the way Mr. Behle likes to, getting financing for it? Who in the world would be willing to lend to a disabled low income person with a defaulted student loan?

Or am I doomed to brokering notes until my situation improves enough to qualify for financing? I have one advantage in that since all my living expenses are paid for out of my disability income, all the money I get from brokering or investing in notes can be immediately re-invested in more notes.

Any ideas how I can get started? I WILL eventually finance the purchase of notes–it’s just a question of getting the knowledge and doing the work.

Thanks to all in advance. :slight_smile:

Yes - extensive info in the archives. - Posted by John Behle

Posted by John Behle on March 25, 1999 at 13:43:20:

There is an article I wrote on financing and a myriad of posts from a couple months ago related to financing.

We had a meeting in the chat room and in preface to that I cataloged many of the resources and posts available. I’ll look for that and post it.

Most sources of financing for paper do not depend on your personal credit. They do have a lot to do with finding good notes, educating investors and building a track record. It can help to broker at least a couple notes, but you are not doomed to that realm for long.

Many make some excellent profits brokering notes, but there is more profit in buying for your own portfolio.