Case studies

Lists of banks

Good sources to buy bank data

What's important about speaking "the language"?

Useful words and terms to help you communicate what you want to someone in the business

Convincing banks that you are serious enough to be a player

Key Questions:

Firstly (a) how to identify target banks and other financial institutions (bank lists, where to get them & how to work them, the difference between Community Banks, Mtge Cos, Banks, private money lenders); (b) who to talk to; (c) what to say.

Secondly: relationships - what they are, how they work with a bank rep.

Thirdly, life in the banks - 5 things you should know about the life of a bank loss mit rep / 2ary asset manager.

What they are

How to read them

Key Questions:

Examples and tools:

Loan due diligence checklists

Key Questions:

          Sr's to a 1st:

• municipal taxes (delinquent vs liens vs sale w/redemption);
• IRS - 120 days (Del Mar property title rpt - also redemption: stories of IRS redemptions);
• other senior judgments or liens - e.g. unclosed 2nds (subordination vs accidental - e.g. refi's with open LOCs);

          Sr's to a 2nd:

• HOAs;
• other Sr liens

Key Questions:

Occupancy status is important

Contacting the borrower - single most important error made by investors

Credit - how to, when to pull it

Deciphering the "story"

Determining temporary vs permanent financial setback

Key Questions: which way will you exit - there are 5 ways of exiting a non-performing note:

There are multiple ways of calculating cash flows and returns for each exit strategy.

KEY to success is to model accurately for the most likely exit strategy you anticipate pursuing (e.g. probability models vs straight/simple models)

Involves case studies covering the bidding and closing process.

Pool-level vs loan-level bidding

Fades

Indicative vs final

Collateral reviews

Getting a deal under contract before spending any money

Stips: the 12 stips to include in your bids for any bank note.

This is where the pro's make millions.

Relationships

Bid strategies

Escrow:

Title:

The Closing Process w/banks:

Servicing: what it is, how to do it right, and who can do it for you.

Service release - what it means.

File Transfer: the Collateral File:

RESPA - welcome and goodbye

Managing to your plan, but staying flexible - updating your financials to manage your returns

Probably the lowest value in terms of a resale

But can be the speediest exit

And can become a dedicated outlet for your business

The ins and outs of re-performing a note

Re-sales - how to get out of a re- performer - where to sell your re- performing paper

Short Sales

The process

Summary of the foreclosure process

How to use foreclosure

Tricks of the trade

Lessons from the creditor's box

Deeds-in-Lieu - a two-edged sword:

The Sale: using the market vs. capturing equity

How to secure a Deed-in-Lieu

Securing the agreement

Do's and Don'ts:

Opening bid and final bids - how to calc them, how to set them

Trustees and how they work

The steps in a foreclosure sale

Bidding against yourself to gain title to a property

The Option Contract - spicy and hot, and untried really!

The "choice of last resort"

REO's as a strategy

Learning from the experts: Betsy Doss and How to Manage your REOs

Planning ahead

Note Setbacks

Why calculating returns and yields are important to your note buying business

The 4 different ways of calculating returns, and the pros and cons of each

How to use good analytics to make you more money (investors vs partners)

Servicing:

An interview with a servicer

Credit

Collateral Reviews

Insurance - force-placing to cover your liabilities

Advances

Loan files - getting the most out of collector's comments!

When do you need to talk to the homeowner?

When should you NOT talk to a homeowner?

Communication do's and don'ts with your borrower