Imagine yourself 8 weeks from today.

The holiday shopping season begins. The financial world will still be reeling – and in the early days of digesting some of the bailout funds that Treasury will be throwing at banks before the holidays.

That’s 8 weeks from now.

And where will your note buying business be then? How many defaulted mortgages will you have bid on and won?

How much money will you have raised? How many banks will have opened their doors to you and sent you tape after tape of product that they would love to sell?

Will you be even more concerned than you are today about your lack of ‘deals’? Will you be asking yourself if you will ever be able to close a purchase before Christmas?

8 Weeks from now is the last day of my custom-built 8-Week Note Buying Roadmap – IF you start today.

By then, most of my students will have figured out how much to pay for a nonperforming note, where to find one, what to do with one, and how to close on one. You see, they will have just completed the 8-week roadmap (with its 9 Note Buying checklists and 4 toolkits), that guides them through my A-Z of Note Buying course. And many will have just finished perfecting their offers to banks.

The most persistent students will have already bought their first note, and the best one will have cashed in on hers already, and be looking to buy 2 to 3 more before Christmas.

For those who just got into their very first note, they will have a sense of achievement – of finally having overcome their own fears about ‘being the bank’.

Many other people will have let 8 more weeks pass by with no change on their horizon. They will be as frustrated then as they are now. They will have no more money to spend on the holiday shopping season than they do today. And they will be as gloomy as ever about the prospect of ever getting control over their real estate dreams.

Which group will you be a member of? The one working to close its first note deal and to start profiting from the turmoil in the mortgage market, or the one watching November pass frustratingly by?

The 8 weeks will pass by, regardless.

New Years is around the corner. Instead of making another laundry list of resolutions on January 1st, wouldn’t it be nice to instead feel like you’ve already completed a few that you haven’t even made to yourself yet?

Like committing to an investment strategy that can bring you wealth without requiring your endless time, and taking your first step in developing a relationship with a bank that can bring you deal after deal after deal.

The 8 week are going to pass by. But the question is: where will you be when they have passed?

You are the decision-maker.

My ‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘ course positively has all the knowledge and tools you need to get started. But the implementation part I can’t do for you.

Take a step to advance your real estate investing. Don’t just dabble again like you have before. Make this one count. You can do it. Now.

I will help you get started and lay out each step you need to take to be a success in buying notes.

We will shortly stop offering it at the introductory price and it will go up 50%, which will be a lot more in line with the true value of it (just compare its massive content & the current price to other courses out there…).

But I wanted to give you the opportunity at the old price. Plus, I will honor the special discount code I put at the end of the FREE ‘See what can happen to YOUR Note Buying Business in 8 Short Weeks’ Video for another 48 hours, to make it a complete no-brainer for you.

You can get the 16 hour+ Note Buying course here.

Hope to see you on the other side. It’s an exciting ride and the perfect time of the market to do this.

Dean

PS: Here is my gift to you again: a FREE Video tour of what can happen to Your Buying-Defaulted-Mortgages Business within 8 weeks time…
(Plus a little bit of market analysis for you.)
=================================

* Join our NEW FORUM at www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘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.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) – Test-Drive it for F.REE 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, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog (use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

==================================

If you really want to know the in’s and out’s of how to talk to banks to buy defaulted mortgages aka nonperforming notes, why not hear it direct from the horse’s mouth, so-to-speak?
 
I mean direct from a banker.

Make that TWO bankers.
 
That’s right….

Join me tomorrow (Wednesday) at 8pm EST, 5pm PST for a conversation with TWO bankers, Saprina and Janet (some of you may remember Janet from the ‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’ Course, others may have heard Saprina before in our Private Access Club – here is a brief snippet from our last call with Saprina to give you a taste).
 
So if you want to know anything about the following, then don’t miss out tomorrow:

* What are the first words to say to a banker to buy defaulted mortgages?

* Does it matter what language you use?

* The 3 Things never to say to a banker when buying defaulted mortgages

* The 2 Things always to say to a banker when buying defaulted loans
 
And if you want to test your phone calling skills, a few of you will get the opportunity to try a sample conversation with Janet and Saprina!
 
This could be the time that you perfect that banker call you’ve been dreading for so long.
 
Don’t miss it!

Short Sales aren’t going that well, aren’t they?

It’s NOTE BUYING TIME NOW.
 
Dean

PS: Again, here is the link to be on the webinar/call tomorrow.
(If you see this after the fact: no worries – all recorded!)

Wow – what a wild week last week, and it’s continuing this week.

Will it be $700 Billion, or $150 Billion as some lawmakers are suggesting?

Will Treasury get its way?

And then, if it passes, will that suddenly dry up the ENTIRE supply of non-performing bank notes out there?

ABSOLUTELY NOT.

The bad news is that a lot of banks are actually going to be in trouble and have to recapitalize themselves if they have to sell their assets, even at Treasury’s anticipated prices.

In fact, you should be “sharpening your pencil” as they say in the note buying industry, in order to get ready to start bidding on paper.

Whether it comes from Treasury, or whether banks themselves engage in “price discovery” in order to see what their assets are really worth, I anticipate there will be a lot more paper in the market over the next year.

I put together a short VIDEO with my take on the subject for you, where I am also pointing out the webinar we are doing tonight in the Private Access Club on ‘How to get Your Note Buying Business UP-AND-RUNNING within 8 Weeks!’ (No worries, if you are reading this later… the REPLAY will be up in the members area! And, hint, hint, there is a 30-day FREE trial for you…)

I will take you by the hand through an 8-Week Roadmap I put together for you, where I am laying out a CLEAR PATH for you, from A-Z. Step by Step. Done for you.

(They get see this kind of REAL-LIFE info WEEKLY, plus an ever-growing ARCHIVE of recordings (Online Videos, MP3 Audios, iPod Video Downloads, etc.) of literally anything that took place in PAC so far…)

You can check it out yourself for a buck for 30 days for right now…)

This is a 22-minute Video Case Study of a note buying deal that I am currently doing. So this is UP-TO-DATE stuff. This note buying transaction should net me over $70,000. And believe me, there is no reason why YOU, with the right training, couldn’t do the same thing, buying defaulted mortgages.

It’s September 2008… TONS of defaulted mortgages out there, that banks want to unload!

The Exit Strategy for this one turned out to be Foreclosure & REO.

Take a look. And leave me a comment and tell me what you thought.

(Sorry, the Video misses the first couple of seconds, but it’s still easy for you to follow along…)

Hope you enjoy this ‘How to buy Defaulted Mortgages’ Case Study!

OK, so I just officially received the “where do I find the list of banks that sell?” question now for the 58th time (I’m not kidding here).

So it’s obviously on a lot of your minds.

And it was on my mind when I finished my very first course on How to Buy Notes almost 4 years ago now.

In fact, that was the MOST important question I wanted to ask Mark – my instructor. And it was the MOST pressing on our minds.

And so … at the end of a 3-day workshop I spent with him … I was so tense and ready to just GET THE LIST OF BANKS THAT SELL NOTES.

Goddamit, I thought. 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?

So it was with great anticipation that Mark handed me – handed us – the Magic Binder of banks that sell.

I wolfed it down. I skimmed every page for nuggets, details, of every bank that “the Master” knew sold notes.

And here’s what happened. Here’s what I did with that information.

Exactly … nothing.

Why?

Well, let me walk you through what happened after the course was over.

Here’s what happened after Mark handed me a binder full of the names of banks that sold notes:

a)    A number of the banks didn’t exist anymore (if I had included Indymac on the list of banks that sell notes a few months ago, you’d be disappointed in me now since you’d probably end up having to negotiate through the FDIC rather than Indymac)

b)    The phone numbers were just the main numbers for the banks themselves – which I had access to using Lane Guide or even Google

c)    Some banks on the list that had sold notes, I was told when I called them, didn’t any longer (so they told me – however whether they would mention something differently to him I didn’t know)

d)    Some banks that were not on the list, did sell notes

e)    Once I had the name of the bank itself, I still had to make my presentation to the right person – and that had more to do with what I needed to talk to the banker about than about whether the bank sold notes or not

And finally, here’s what happened to the list of banks, and that binder. It’s sitting on my bookshelf now. I’ve thought about copying it and distributing it – since it would probably be no less useful now than it was 4 years ago when I was leafing through it.

So what’s my point here?

The list of banks that sells notes and defaulted mortgages is huge.

And it’s based, in almost all situations, on who you know.

I know less than a huge amount of banks that sell notes. In fact, the people that know the list inside and out more than anyone are … hmm, well let’s think about this for a minute.

a)    I know – personally here – less than 3 dozen banks and lenders that sell defaulted mortgages in today’s market

b)    The people I know well in this industry who run $1-50 million fund buy from less than 20 lenders in any given year. Most have less than 10 people that they buy from (or through – good brokers are a good find in this industry – treat them well)

c)    One of my colleagues spent 7 years buying from The Associates – that was his EXCLUSIVE seller – it still boggles my mind, but he became very wealthy from that one relationship

d)    Everyone who’s a “professional” note buyer has one thing in common

… and here’s *** THE SECRET *** – so listen carefully …

That secret is … they know how to talk the talk. They know what the talk is, what to ask for, how to ask for it, and what to do with the information once they’ve found it.

(May I say, you will be pretty dang good at that as well, even WITHOUT having bought your first note yet, if you thoroughly digest the 16 hours of training I am giving you in the ‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘.)

There.

Did you just hear that?

Did you get what I just said?

Let me put it another way as a friend of mine once told me: “It’s not about what you know it’s about what you do with what you know.”

So picture for a moment that the most knowledgeable of all Note Buyers (think of this person as the Zen Master of Note Buying) and you are on the 20th floor of a New York City apartment building looking out over the Lower East Side. The view is magnificent, but we don’t really hear the city at all, so she asks you out onto the fire escape.

You crawl out through the open window, and there, with the noisy backdrop of honking cabs and the rumbling of air conditioning fans, she grabs your arm and points out to the high buildings all across the horizon.

And then she says, in a hushed voice: “There they are.”

You glance at her, quizzically.

“Who is there?” you ask.

“They are,” she answers. “The ones you are looking for.”

You look out to where her arm is pointing, but her arm is moving in a gentle arc all the way from your far left to your far right.

Now, you’re really clueless. You’re about ready to ask her to explain what she means, but she cuts you off.

“I sense your doubts,” she says, and then continues.

“Let me tell you a story.”

And she begins to tell you a story about the time she learned from her master, and what he did to teach her where to look for the Fountains of Perpetual Notes, as he called it.

And she recounts the four words that he told her, in a similarly hushed tone: “Look for the suffering,”

“So now,” she whispers to you, her arm still pointing over the buildings lighting up New York’s night sky, “I tell you. Look for the suffering and there you will find the Fountains of Perpetual Notes.”

And she takes you back into the apartment there on the 20th floor in the Lower East Side.

Look for the suffering. Fountain of perpetual notes.

What the ?@#! All I’m looking for is a list of banks that sell notes!

The suffering right now is EVERYWHERE. There are very few lenders that do not have non-performing assets on their books.

There are many, many, many lenders that are selling notes right now, to investors they know and to investors they do not know.

===> There are even more lenders that are being forced to sell notes right now, to investors they do not know.

There are many investors that are calling up those lenders asking to be put on the “list” of approved investors.  If I were to give you the list of banks that I know sell, it would be like telling you to go pick a number and to stand in line at Katz’s deli at lunch rush-hour on a weekday.

Instead, go “Look for the suffering”.

And approach this with the belief that every lender sells. It’s not a question of “if” – but “to whom”.

I hope you you enjoyed this info on how to buy defaulted mortgages.

Here are the questions I answered:

1)      Can I buy single defaulted notes from banks?
2)      I don’t have any money, how can I buy defaulted mortgages from banks?
3)      How do I get a list of banks that sell defaulted mortgages?
4)      What are the biggest risks I run when buying defaulted mortgages?
5)      What price should I offer on non-performing notes?
6)      There is a Short Sale I am doing – do you recommend that I try to buy the note instead?
7)      Where should I go in order to get money to buy notes? (See 2)
8)      Do you have non-performing notes that I could buy?
9)      Can you coach me through my first note buying deal?
10)   What’s the best way to get trained in the note buying business?

Briana just sent me an email asking me the question re Short Sales below, and since I’ve gotten this one a lot recently, I thought I’d share my response to her with you in case you were curious yourself:

“Hey Dean, how successful are you at buying single notes from banks on a short sale?”

Those of you who know me, or those of you I’ve spoken to in our note buying training over the past few weeks in the Private Access Club, will know the distinction between short sale and note buying.

But in case you wanted yet another refresher, or in case you haven’t heard the comparison, here’s my reply to Briana:

“Briana, thanks for your question. It’s a great one, and one that a lot of people have.

Let me point out the fundamental differences between a short sale and a buying defaulted notes.

SHORT SALE

A Short Sale is a transaction in which a PROPERTY is sold, and all the notes/mortgages on a property are closed out.

The party selling is the homeowner. The party buying is either an investor (intermediary) or a new homeowner.

In simple terms, what this means is that in a short sale, you have a home being sold by the homeowner (let’s call that person Borrower A) – sometimes through an intermediary – to a new buyer (let’s call that person Borrower B).

The new buyer “brings” their own financing to the table, meaning they get 1 or more mortgages / deeds of trust on the property in order to finance their purchase.

So at the end of a short sale transaction, the ORIGINAL loans that Borrower A had, are gone. They’ve been “reconveyed” or “closed out”.

NOTE SALE

A Note Purchase (sometimes called “Note Sale”) is a transaction in which a NOTE is sold.

The party selling is a bank/lender. The party buying is an investor.

There is NO parallel sale of the property as part of this transaction. And the borrower on the Note (the homeowner) is typically NOT aware of the transaction, because they are not a party to the transaction.

In simple terms, what this means is that in a note sale, an investor makes an offer to a BANK on a particular note, and buys the note. Once the note is sold, the investor and the bank both let the borrower (who is almost always, but doesn’t have to be, the homeowner) know that the borrower now needs to make payments to the NEW bank, which is the investor.

As an interesting TWIST here: as the purchaser of a nonperforming note you can (and will) be on the OTHER END of a short sale, which is a lot more powerful, btw.

YOU are the bank now, and YOU can APPROVE or DENY a short sale – which may be very much in your interest (to accept a lower payoff), since you bought the note way below its face value, and there is enough room to forgive the borrower some of the debt – and still make a healthy profit yourself.

Let me show you a comparison between How to Do Short Sales and Note Buying again.

After watching it, you tell me which one is the more powerful strategy:

PS: In case you meant to ask how successful we are at buying single notes from banks rather than larger pools, let me tackle that question too…

It depends on the source, to be honest. There’s one bank that buy non-performing notes from where we cherry pick those notes we want, and pass on those loans we don’t want. A lot of other banks or mortgage companies we work with sell entire pools of non performing notes, so those bids typically end up being on entire pools.

P.P.S. It IS POSSIBLE to buy individual non-performing notes from banks at a discount.

That’s how I got started. And I’m still doing it today, so I definitely recommend it, unless you’re in the $100 million+ range, in which case buying singles may be difficult for you.

P.P.P.S. If you watch the Video on top of our home page at www.notebuyingprofits.com, I am actually showing you my very first note that I bought, which was quite a homerun. (Fair disclosure: this is not some get-rich-quick scheme… and not every deal brings in close to $100,000 in profits, but it’s possible to make those kinds of note buying profits.)

You might also want to check out the many free note buying videos on our site, and then see whether chasing after notes instead of short sales is for you or not.

Hope you enjoyed this post on the difference between note buying and how to do short sales.

I get asked all the time ‘But, Dean, how do I find non-performing notes?? Do banks really sell notes to individuals?”

One person just told me “hey, I walked into my local bank branch and asked if they had non-performing notes for sale and they told me “no, we don’t sell notes.”

Well, if you want to get serious about figuring this out – AND shortcut your learning curve dramatically: it’s all in my ‘How to Find Non-performing Notes Course (4 hours+ jam-packed information on exactly the subject of ‘how to find non-performing notes’).
You can watch the first 2 HOURS for absolutely FREE. Take a peek:

If the bank doesn’t have either of the first two departments, then make sure that you aim straight for the top of their loss mitigation department – you don’t want to get stuck in mid-level manager hell.

And then once you get that person on the phone – tell them that you buy non-performing notes, anything 90 days or more delinquent, tell them where you typically buy notes, and if they ask you for what your typical pricing is, tell them you can price up to, say, 85% of UPB (unpaid principal balance). (You don’t want to kick yourself out of contention for buying notes when you haven’t even gotten a foot in the door, and if the bank’s asking about price, make sure that you convey that you don’t skimp!)

As to the secret of how to get through to the right person – and what it REALLY takes to break through to that bank representative: it’s covered in detail starting at minute 11 of Part 3 (the third hour) of my ‘How to Find Non-performing Notes‘ Course.

Well, I’ve since gotten well over that fear, and YOU’ll get over your fears about this industry – WITH THE HELP OF THE BANKS THEMSELVES!

What is YOUR biggest question or concern about note buying?

Share your most burning note buying question with me and I will do my best to ‘demystify’ it for you in this blog later on.

Tomorrow I’ll be interviewing Janet – who’s been a Secondary Asset Manager (a fancy title for the person who holds the keys for us Note Investors) for years at a national bank, and who’s agreed to answer my (and your) most burning questions about the note buying business.

Get those questions in now, so that you have a chance to get them answered this week!

Here’s Downey’s non-performing loan portfolio (with thanks to calculatedrisk):

Click ( here for larger image).

What’s interesting here is that Downey’s working to restructure or modify a growing portion of these loans (as are most banks). A full 40% of these assets are now “reperforming” loan mods, which Downey calls its TDRs (troubled debt restructurings). Many reperformers are often sold as well.

Their 8-K quarterly filing can be found here.