Using Online Tools to Value Notes

The “Note Buying 101″ series: Using Online Tools to Value Notes

In today’s economy, news of defaulted mortgages have become a constant refrain. Despite the obviously negative tone you find in the reporting on this subject in the media, many people see the current housing situation as a once-in-a-lifetime opportunity to make money. Today, we’ll talk about one of the hottest trends in real estate investing now–the buying and selling of non- performing “notes, ” i.e. defaulted loans.

Assuming that you’ve learned enough about note buying to want to get into the game, what would you say is one of most important elements in your note buying decision?

Note Buying Basics

Let’s start with the basics. When you’re initially searching for notes, due diligence plays a major role. Take a look at any of the important decisions you make in your life. Don’t you always do your homework? Weigh the positive and the negative? Well, ask yourself, why shouldn’t you apply these same principles to your note buying business?

Exactly…there isn’t any reason why you shouldn’t.

Buying Notes – 4 Source to Determine Value

If you are going to buy some notes, you need to know what those properties are worth. How can you do this? Here are a couple of tips on how you can evaluate those properties without leaving your home.

Your four best sources for estimating value are:

1. Trulia.com 2. Realtor.com 3. Zillow.com 4. Local MLS data (from a local realtor)

How to Buy Notes – Online Research Tools

Let’s focus on the first three for now. Each of these online sites allows you to research comps near your property–all from your computer, without leaving home! You can access recent listing prices, average sold prices, and how long the properties have listed before they were sold. All of this information can give you insight on what these properties (that are attached to your note investments) are worth.

In one online session, you have determined the value of the property. You know generally what the note is worth and furthermore, a price that you should offer.

How to Buy Notes in Today’s Market

Note buying isn’t rocket science. With the correct guidance and knowledge, you can profit in today’s real estate market. Knowing what actions you need to take and how to perform them is a step in the right direction. As with any investment, know what you are investing in.

Stay tuned for my next article as we look further into the last source on my list. In the meantime, get on your computers and explore the three websites we mentioned. Become familiar with all the free information that is available to you.

Check out our Note Buying Forum.

Check out our ‘A-Z Profiting from Discounted Mortgages Business-in- a-Box’. -> 16 hours+ of Video Training, 23 pages of checklists, a complete 8-Week Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.

Want ongoing support?

Test drive the PRIVATE ACCESS CLUB’ (PAC) for 30 Days! Get Your Questions Answered LIVE & get Ongoing Support & Training! Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more