11 Responses to “Cracking Kondaur”

1. Name Withheld on July 31st, 2009 4:38 pm
   

   Dean, This is such a great way to leverage the NBP forum, this is really going to benefit the group. The timing of this call, however, is a huge disappointment to me as I will be in [personal info removed].

   I will share another little story that just concluded w/ them yesterday. I looked at a loan a few months ago – UPB 280 (2nd 80), value 260 and I was bidding 135k on the 1st. I drove the area, spoke to realtors, etc. The area is under big FCL pressure, but bank sales that are priced right have multiple offers. I felt v.good about this clearing quickly at 260. Anyway, after mauling me like a wild boar on the veldt they suddenly disappeared, and were now shopping my offer (again!). They eventually came back, said the offer was too low, etc. I walked. Four weeks later, they re-approach to see if my offer was still good. I agree, and they agree on price and a closing date. I started negotiations w/ the owner of the 2nd, begin arranging an offer for the borrower (DIL, etc), order title ($!), start the LLC formation, etc…. One day later, they call back, claim to have re-valued the property and need 25% more! Even though I can still make money, refuse to deal like that. Game over.

   To your point in the PowerNotes course, I learned a long time ago not to spend 1 cent until everything was agreed. Even when it was in theory “agreed”, it really wasn’t. Buyer beware!
2. notebuyingprofits.com on August 1st, 2009 3:41 am
   

   No worries about missing the call. This one will be made available after-the-fact. And thanks for sharing these notes. Goes to prove yet again how important it is to put time limits on your bids, and to get the seller “locked in” with an offer they can’t back out of so that you’re not given the run-around.

   Specific examples of how you’ve succeeded, and where you’ve struggled with this seller, will be what helps others the most!
3. ANON on August 4th, 2009 1:26 pm
   

   Recent Story July Note Sale- Kondaur Capital Corporation

   Our group looked into purchasing a note on a property located in our own backyard. Property Value was $269K, UPB was $274 and made an indicative offer at $145K. The asset manager’s response was – show me proof of funds and special servicing information and you have a note.

   We then made a final offer at approximately $138K after doing our due diligence. We provided our bid stips, asking for acceptance of the bid by xyz date, full reps and warranties by seller, original docs, etc.

   Unfortunately, the next highest offer was $140K. We approached the seller and said that we could still close on our original offer of $145K if they took it off the market. The asset manager replied that it should not be a problem and that we would still be able to get the deal done within 3-5 business days.

   The talks then went from red hot to ice cold. After multiple attempts to reach out to this asset manager, and not hearing back from them for three days, we later find out the note has been sold for $148K. Kondaur had engaged with the previous buyer, shopped our offer and we were out of the picture.

   Another thing we learned throughout this process is that Kondaur does not rep and warrant any of their notes.

   On the positive side, you can save time and money by asking them where they can get a deal done. They have provided some very broad ranges, but they are willing to get deals done at attractive prices. Generally each asset manager has a few notes on their desk that they may have trouble getting rid of. In those cases they are more likely to open up, and give an idea as to where you can get a note at a significant discount.

   Our group has not closed on a note with them yet, but they are certainly pricing notes attractively.
4. Anon on August 5th, 2009 12:34 am
   

   I actually had Kondaur call me and offer notes to me. They sent me two deals, one PA and the other KY. I told them that I was only going to buy in Caifornia but they insisted on sending me the deals to look at. They were pretty much bottom of the barrel type of deals. Told them no thanks but I was able to get into their system. Now I just have to find the right deal.
5. anon on August 5th, 2009 4:14 pm
   

   I have not purchased anything from Kondaur yet but have had dealings with 4 sales people who are very active in sending me out the 1 page flyers on notes. They seem to have plenty of inventory. If asked they send you additional information. I am looking over their material and am trying to work on the different personalities to determine better how they operate. They have told me that they can not share BPO copies but one rep told me that he could share service records. They indicate that one can purchase at somewhere north of 50% of BPO. Not sure if they will accept a neutral BPO or how they would react to Dean\’s LOI! They are telling me that they can sell GA loans if buyer has a license or works with a servicer. They confirm that they have parted ways with Pequant but claim to have new and better funding services.

   Anxious to hear the experiences of others.
6. KondaurRep on August 21st, 2009 1:21 pm
   

   Hi Dean,

   Thanks for the positive input on Kondaur. I would be more than happy to discuss with you how we work, what we want to accomplish and how your note buyers can get the best notes.

   Most of the initial notes the buyers have seen so far are from the “rock pile”. Every single new account executive starts with this. We are a young and growing company. I can give you more input to the process and how your note buyers can position themselves to get some great deals.

   We have aquired 2500 notes so far. We are on track to aquire 20,000 notes over the next 9 months. We are in a massive growth phase, growing from 70 employees to just over 300 currently. We will have 800+ by the end of the 1stQ of 2010.

   With this comes a bit of pain and confusion for new employees and note buyers. If you all understand this, it will save all parties heartache.

   I mention this because if the notebuyer goes into the relationship this way and grows with kondaur, the profits would be incredible for your members. It will move your members to the top of the investor contact list quickly.

   I will give you my Kondaur email address next week. I would like to keep an ongoing blog update with your site (changes, policies, our process, newly aquired notes) as long as we are not attacked.

   I can’t stress enough, we will make mistakes and learn from them. As long as the members are respectfull to me, I will openly share any information as to the process and expectations of Kondaur, and how to complete a smooth transaction with us. In return, I would expect blog members to give constructive feed back as to what we can do for them. We are always open to new ideas.

   Again, I appreciate your time and look forward to a profitable relationship for all parties.
7. Lucky on September 9th, 2009 10:01 pm
   

   Interesting……
8. Brett B on November 22nd, 2009 6:17 pm
   

   I am an REO Realtor in Phoenix, AZ and I have been dealing with “Big Gorilla” for about a year. I was also at their headquarters and toured their facility in the Spring.

   In my own dealing with the company I have found that they have run me ragged providing free BPO’s for them (more than 40 in my case) and rarely assigning assets (obviously they prefer to work paper).
9. Veta P on January 17th, 2010 4:30 pm
   

   I am an REO realtor and provide BPO services for many asset managers. I am also licensed appraiser but do not work in that capacity, even though I use the skills when completing BPOs. I completed many BPOs for K. at one point, all paid, but minimal pay because they promised that my BPO will turn into listings – it never happened. I stopped evaluating properties for this company, partly because I felt it was waste of my time; partly because every time I completed BPO they call back asking for ridiculous information. They don’t care about actual value of the property in current market; they just want their paperwork to look good. They would request that I use comps that were 20-30% larger then subject, all fair market sales, extended market times anything to get my numbers to match whatever they have set as price for the property. I got really tired and frustrated explaining real market conditions and trying to make them understand basic rules of appraisal. I don’t believe that company with such attitude would bring any profits and I don’t think that it would benefit anyone having their notes in your portfolio.
10. Pam on February 14th, 2010 10:37 pm
    

    I’m not sure what to ask all you seasoned REO specialists but I have several clients bidding on one of Kondaur’s assets. What is the best way to get one of them the property. I was just told by the listing broker that instead of the 72 hours they originally announced, I should get all my bids in immediately. My realty firm is not exactly what you’d call REO sophisticated. Any advice would be greatly appreciated. p.s. Kondaur, if you are out there monitoring, I would be glad to do free BPOs to get into the REO business. Just saying….
11. ANON on February 21st, 2010 7:56 pm
    

    I was called by an asset manager to possibly list a property in Florida. After a BPO, 60+ photos of the unit, I changed out the locks and sent them the bill. They wanted for to order painter, carpet and cleaning for the unit. Minded I do not have any thing as a listing agreement, contract, addendum or zip stating I have permission to do so. I also do not have anything from them stating that I will be paid back promptly or the vendors I am having to do the work will be paid back promptly. I only have a promise of a (1 month) listing agreement that I do not have signed and back yet. I have very uneasy thoughts about the way they treat the agents that they want to sell their properties. Asset manager is pushing me to have all this work done and I had to have my broker sign an addendum stating that they are not responsible for commissions, or any charges if they do not acquire the property though deed. I suggest do not fork out any money to clean up their properties without a written contract or listing agreement stating such.

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