Private Mortgage Notes
If anyone has a suggestion as to how I can locate owners of private mortgage notes without having to spend hours reviewing the "realestate for sale" ads and trying to find "owner financing" tags, your help would be greatly appreciated.
What are you trying to do to locate "owners of private mortgage notes"? If you are trying to find out note sellers, its possible but those private note holders are only potential sellers. Many of them may not want a lump sum money to sell at a discount. If you are trying to find note sellers, there are many more efficient ways to do it. Many institutional note sellers are more likely to willing to take a loss and sell at discount than a private note holder.
I have found extremely motivated private holders of seconds.. 50% discounts are not uncommon.
Most note brokers that post here state that it is almost impossible to get in with the commercial guys and the institutions.
[addsig]
Thank you for your responses. So, what is the most efficient way to locate potential sellers of private mortgage notes? And what has been the response of most people when you contact them offering to give them a "lump sum" for their note. Favorable, unfavorable? I'm really interested in hearing some success stories and even the horror stories. Thanks
Perhaps one of the best things you can do is approach people on the front end and let them know about owner-financing and its benefits. Show them how it works, and get them started. Then you've actually created a market for yourself instead of hopelessly looking for note holders with good notes and notes that they actually want to sell.
I think any other way, you're doing yourself a disservice. With all the time and money spent on trying to find these notes, you'd be better off investing in a minimum wage job.
In today's easy finance climate, good notes are not so easily or quickly found, and there are lots of TV hustlers, a la Russ Dalby, and ANN, constantly pumping more newbie note wanters into the market.
The issue of finding good notes on a regular basis is one of the good reasons for going to somebody''s seminar who knows what he's talking about and who isn't a con, and there learning how & where to develop note finding sources.
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I don't know if this still works since I haven't purchased notes in a long time. I would print flyers that I buy notes and deliver them to real estate offices. I also ran ads in the newspapers. After a time, word of mouth brought in more people willing to sell notes.
Look for multi units, especially th ose over 4 units, frequently they have owner financing and the owner may want cash now
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There are many ways to find note holders. One of most productive methods, if you handle it professionally, is to purchase a database of sellers and send them a well written letter or post card. The key is sending out a professional looking mail piece to the right people. Many note brokers quit using direct mail because they did not understand this.[ Edited by JohnLocke on Date 11/17/2004 ]