3 Slots left for “My First Note” workshop
July 15, 2009 by notebuyingprofits.com
Filed under Live Events, Note Buying 101
You’re probably not one of the people Dean invited to the advanced Note Buyers workshop.
But something tells me you would like to be…
If you dream of becoming one of the growing number of note buyers and brokers who are adding thousands to their incomes, starting a new career–on their terms– and actually benefiting from the curent economic meltdown, there’s never been a better time to get started.
If you’re ready to do this, Dean has designed an intensive full-day training to get you up and running FAST at the “My First Note” workshop on Sunday, 7/26.
BUT–there are only 3 slots left.
If you want to get a “leg up” while the market is hot, this is a great way to do it.
Dean will be joined by other industry experts to give you the tools and strategies you need to start profiting from this once-in-a-lifetime opportunity to buy and broker notes.
Plus, you’ll meet other buyers, brokers, and investors looking to partner with other people.
Imagine what a difference it would make to you to make just one connection that could give you even one note deal this year…
It’s up to you.
Call Jen at 415-252-7997 to register.
“My First Note “Workshop details: Date: Sunday, 7/26 Location: Mill Valley, CA (near SF) Time: 8:30 a.m.-5:30 p.m., plus an after-hours networking event Led by Dean Engle and other industry experts
Price: $997–but there are discounts available–ask Jen
I was looking at one of the websites that you mentioned at the BAWB meeting last month. I noticed that most of the 1st notes are current; however, if one buys a note, then the buyer decides to refin at a lower rate, what does that do to the note that you own? Are you paid off and that’s the end of owning that particular note?
When purchasing a 2nd, does the lender of the 1st always want to buy it from you?
Regina – yes, the websites tend to be selling a lot of “current” 1sts, though some tend to be called “current’ but are performing under a Bankruptcy Chapter 13 plan.
In a nutshell, you seem to be asking 2 things: a) how does a refi impact your position as noteholder, and b) can you “exit” out of a 2nd by selling to the lender in 1st position?
a) If the borrower refinances you, you may or may not get paid off in full. Let’s use some numbers. You buy a 1st with a balance of $100,000, for $60,000. The house is worth about $100,000, so the 1st you’re buying is at a 100% Loan-to-Value, or LTV.
Now, the borrower is interested in refinancing and a hard money lender is willing to lend up to 70% LTV, so will come in with a new 1st for $70,000. But your loan is for $100,000. So IF you wanted to make $10,000 (the difference between the new 70,000 1st and the 60,000 you paid for the 1st you bought – assuming no fees), then you could agree to what’s called a “short payoff”, meaning you would accept less than what you are owed – the $100,000 – in exchange for releasing your 1st mortgage.
b) If you buy a 2nd, it is relatively rare for a 1st mortgage holder to buy you out. It’s either the borrower or another investor who would usually be most open to buying your note. Think of it this way: if the 1st is non-performing, and the lender wants to recover as much as it can on its mortgage, why would it buy your 2nd? It wouldn’t. I wouldn’t count on being bought out on your small 2nd by a hungry first!