Articles

Click here for a selection of over 20 of Dean’s free articles on note buying and note brokering.

Simple: Note Buying 101 - 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.

Buying Notes - The Art of Bidding
I wanted to share with you a specific example of someone buying notes. They were approaching the bid process as a Science, but missing the part about the "Art" of it. You see, if relationships didn't count for anything, and if the principle of High-Bid-Wins always applied in every single note buying situation, I wouldn't have worried about my friend who was bidding on a commercial loan pool on DebtX (an online bidding platform for non performing notes).

Buy Notes - Hitting a Put Shot With a 9-Iron
Buy Notes - Know Your Borrower. I just got off the phone with the Sr. Vice President of a California bank in charge of note sales, and a note broker friend of mine who set up the call. The SVP has 3 non-performing loans - they're commercial loans in the LA area - but ignore the fact that they're commercial right now.

How to Buy Notes - Know Your Note Buying Enemies
How to Buy Notes...Know Your Seller You've probably heard of Sun Tzu's (the famed Chinese warrior) instruction to his soldiers to "know your enemy" before going into battle. Well the same is true with note buying. "Know your seller" should be the mantra for every note buyer (and broker for that matter!). Why? Because if you don't "know" your seller then you might be entering a negotiation with them without having any idea of their key negotiating points.

How to Buy Cash Flow Notes - What If the Banker Says We Don't Sell Notes?
Let me share with you a common hurdle that one faces when looking for non performing notes. So you've been busy cold calling banks and looking for notes to buy. Several bank contacts have told you that either the bank does not sell notes or the bank does not have any non-performing notes.

Brokering Notes - Start Your Note Buying Business Today
I've been flooded with requests from investors and students who want to broker notes to us lately. I wanted to help clarify a couple of things that will make it easier for anyone who's considering brokering notes. To improve their close rate and their profits from brokering (who doesn't want to increase the amount of money they make from their brokering activities?)

How to Purchase Non-Performing Notes - Good Brokers Are Key
You know, a good broker for your note buying business is worth his or her weight in gold. This past week, I received 4 phone calls from one of my "Good" brokers. He called me to touch base on where I was on my non performing note bid.

How to Buy Mortgages From Banks - The 4 Buckets in the Note Buying Industry
Here is a commonly asked question. "My understanding is the federal government is going to be offering financing to private equity and hedge funds to buy up the bad debt aka defaulted mortgages."

How to Broker Notes - Getting Started in the Note Buying Business, the Right Way
A Question on How to Broker Notes Here is a question that most people ask. I'm a newbie. I have read all the free information available on the note buying business. I have no money to invest in non performing notes at this time. I plan to broker notes until I get comfortable with the process and get some investment money saved

Cash Flow Note Business Success - The Lone Wolf
A friend of mine, Heather, flew in for her 40th birthday this weekend. We just spent four hours catching up over expensive white tea and salmon salad at the Samovar Tea Lounge near our house.

How to Do Short Sales Vs Buying Bank Notes - A Short Comparison
How to do Short Sales, A Tough Investment. This article is for those of you who have tried your hand at short sales and realized that they're harder than they look. Here's a quick side-by-side comparison.

How to Buy and Sell Real Estate Notes - On Cash For Keys
I think this information will be of value to you, so read along and pay close attention. Assuming there are no Junior Lien Holders... In CA, I could find buyers willing to pay 75% of market value for an REO

How to Buy Notes - A Note Buyer's Dream - Understanding Your Borrower's Needs
You know, it's amazing how the little things sometimes add up to a big deal for your borrowers. What do I mean? Well, let me tell you two little stories about Judy and Natalie, both of them borrowers in our portfolio.

Note Buying - These Non-Performing Notes Could Be Yours
So you're eager to get started in the note buying business and you're wondering what kind of non-performing notes are out there to buy. Here is an example to feed your appetite.

Note Brokering of Defaulted Mortgages and "Turnkey Investment Programs" - NOT?
Warning - this is a memo on the Art of Note Brokering. It was prompted by a note broker friend of mine who recently sent me a one-line update on what he had available for me: "Turnkey investment - Newly rehabbed middleclass homes (former REOs) with large equity positions, leased, and positive cash flow in a market beginning to rebound." I think you achieve Jadedness levels of '10' when those kinds of deals make me go "hmmm, wonder what's under the covers on this one."

How to Buy Real Estate Notes - A Single Source For Your Note Buying Deals
Consider this - I spoke with a note broker friend of mine about a million 23-note pool of nonperforming loans (1st and 2nd mortgages). I review all the loan documents and submit a bid to buy the real estate notes by the following Wednesday, and I find out the following Thursday that I've won the bid with around a .1M offer.

Buying Mortgage Notes - What Motivates a Lender or Bank Rep to Sell?
Below is a question I got asked recently. I thought this was valuable info, so I am sharing it with you here: "I've been reading everything I can about why lenders would be willing to sell properties at large discounts. Dean, what would be a lender's main concern which would get them to sell mortgage notes at deep discounts? I feel that since we're trying to get into the minds of the LMREP, it would be more advantageous to all, if we could sell our services to their main concerns."

How to Find Notes - Do You Speak My Language? A Tip on Buying Notes
One of the most important lessons in the world of how to find notes. Relationships matter. In fact, not only do relationships matter, but "commonalities" matter. In other words, what you want to do when you're trying to find notes is to find out ways to build ties with your seller.

Buying Defaulted Loans - Even Bankers Needs Some Handholding in the Note Buying Business
A Success Story on Buying Defaulted Loans: "I need some handholding..." Those are the words that someone just shared with Will this week. Who's Will? He's a new investor learning how to buy notes and has been hitting the phones like a wild man.

How to Buy REOs - REOs Versus Non-Performing Notes
I would like to share something on how to buy REOs with You. It's a tough choice, I know. And I'm sure some people look at non-performing notes and say "Why would I EVER want to own paper when I can own the real estate for so cheap?!" Well, yes. It can be cheap. Well, I would like to share something on how to buy REOs with You.yes. It is real property as opposed to a debt obligation.

Buying Notes - Do You Have a List of Banks That Sell?
When investing in Notes, one of the most commonly asked questions is: "Where do I find the list of banks that sell?" I know this because I have been asked the same question for the 58th time now, so it's obviously on a lot of your minds. It was definitely on my mind when I finished my very first course on How To Buy Notes almost 4 years ago. In fact, that was the most important question I wanted to ask my instructor Mark. And it was the most pressing on our minds. At the end of the 3-day workshop, I was so tense and ready to just get the list of banks that sell notes. Why didn't he just give me the list at the beginning of the course to just get the tension out of the air so that we could all focus on now what to do with that list?

Buying Defaulted Mortgages - One Note Buying Exit Strategy is Not Enough
I had a conversation with a new Note Buyer the other day, and he told me that he was launching himself into notes after spending a long time wholesaling properties. What worried me was when he said: "Dean, I want to get into buying defaulted mortgages in order to keep people in their homes and get some good cash flow." Don't get me wrong. I'll be the first to admit that Humanity counts. But ... Don't lose sight of the forest for the tree. In other words - don't try to force your Note deals down one note buying exit strategy.

Loan Modifications - Who Took My Non-Performing Mortgage?
OK, so the Word is out, the Doctor is in, and the medicine is...Loan Modifications. Specifically, principal write-downs. Interesting. Loan Modifications...a fix for your non performing mortgage the hope for homeowners initiative passed by Congress in July and officially launched a month-and-a-half ago to much acclaim, is a potentially positive FHA insurance package aiming to insure 0B of new mortgages for borrowers in a "negative equity" position.