Anyones Opinion on this new Note Buyer - Posted by Herbster

Real Estate Investing Real Estate Law
1

Posted by SoCalGal on August 05, 2008 at 10:36:30:

Nick sent me a hypothetical as follows: [quote]

Here’s the simple explanation…

First off, it’s not a 100% deal, the buyer should have 5% down. Also, it’s
not for “any” 500+
person, there are other requirements. They need to have 2 years
verified income and rental
history, as well as have paid off any judgments and collections and a
few other things.

In addition, the seller gets cash, but does NOT get their asking price.
They SELL for their
asking price, but after selling the note, they get less than the sold
amount.

Anyway, here’s an example using a $100k house:

The seller sells the house with seller financing for $100k, and gets a
5% down payment.

Seller sells with seller financing, and buyer puts down $5,000.00,
leaving a 95,000 note.

The company comes in the same day and buys the $95,000 note for
around $83,000.00.

The seller gets $83,000, the amount she sells the note for, PLUS the
down payment, in this
case $5,000.

So, the seller SELLS for $100k, but after selling the note at a discount,
the seller walks away
with around $88,000 total.

The seller got cash, the buyer got a home, and the note company got a
$95k note for $83,000

Yes, I see how it’s unlikely that such a note would fetch anywhere close
to $83K in this market.

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Anyones Opinion on this new Note Buyer - Posted by Herbster

Posted by Herbster on July 26, 2008 at 20:41:40:

Hi all, Just read this on another forum. This unnamed group says they’ll buy Notes for 10-15% discount, with people with 500 FICO’s. Check them out, lets get some opinions, seems to good to be legit. They offer a Temporary Seller Finance Program. They’re at www.IProvide theCash.com
Herbster

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Re: Anyones Opinion on this new Note Buyer - Posted by Nick Cifonie

Posted by Nick Cifonie on August 04, 2008 at 19:07:32:

I’ve read all the comments, here and elsewhere, and they sound to be all over the board…anywhere from people who are un-educated on how the note business works with questions, others who can’t offer the same discount and/or terms who cry “if I can’t do it, it MUST be a scam”, some who don’t care at all, and still others who feel it’s absolutely brilliant and are using it to fund multiple properties monthly.

I guess it’s like anything else, perception is everything. I remember when people thought a subject-to deal was “illegal”. That “scam” ::cough:: has created millionaires.

The best bet would be to educate yourself and come to your own conclusion, rather than listen to a stranger on the internet.

I would suggest following the link: www.YouProvideTheCash.com , joining as a trial/FREE member, and clicking on “Contact Admin” to get your answer.

Yes, there is a fee “IF” someone wants to become a member and promote the program, but THERE IS ABSOLUTELY NO CHARGE to use it to sell a house.

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Re: Anyones Opinion on this new Note Buyer - Posted by Brian Carter

Posted by Brian Carter on July 27, 2008 at 22:19:24:

The guy in the video, John Alexander… he is the one that does the late night infomercials.

He used to advertise about something called an Inverse Purchase, now his website advertises “Forclosure Fortunes in 14 Days.”

He has serveral other websites as well.

www.paperbiz.com
www.creativereinvesting.com
and a few others that redirect you back to one of these.

I have never purchased any of his material before, so it would be unfair for me to judge, but I would much rather ask members and readers of CREonline before I send in my hard earned money to receive a set of books and tapes and an 800 number.

Thanks.
Brian Carter

5

Almost too good to be… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on July 27, 2008 at 16:02:51:

Herb:
The concept is sound- Its one we’ve espousing for years;

Market a home far more efficiently using Seller Financing to a larger pool of potential buyers in todays sluggish home sale marketplace.

Sell and SELLER FINANCE the sale - creating a marketable Real Estate Note which can be converted at the time of closing or some future point in time to a disounted CASH lump sum.

The issue I see is that the examples of new unproven, non seasoned, seller financed Notes being created on a quick FLIP scenarion with proposed 500+ credit score buyer being sold for 85% to 90% of the balance oustanding on the new unproven seller financed Note.

In todays unsettled mortgage marketplace - for the most part this is pure HOGWASH.

Seller financed “paper” is non conforming “paper”. As such it carries with it higher perceived issues of risk.

Having traded, bought and sold, mortgages in the secondary marketplace for years, many CONFORMING Loans with full documentation, which are seasoned, and performing are not trading at those pricing levels today.

Its wishful thinking to believe that a seller financed Note given to a 500 credit score borrower with a recent sale, very light down payment, high LTV- high loan to value, and no proven track record of payments or performance will trade at the 85% + level.

Hopefully others will chime in.

As Always - my best to your success;
Michael Morrongiello

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Too good to be true…often is - Posted by Michael Morrongiello

Posted by Michael Morrongiello on July 27, 2008 at 13:26:06:

Herb:
That web site URL does not come up? WHO is reportedly behind this outfit? Name of principal, etc.

I suspect as you stated; “if it sounds too good, its…”

Oh, and let me guess- there is a charge to obtain their suposedly proprietary information…

Michael Morrongiello

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Does Nick Have a Point? - Posted by SoCalGal

Posted by SoCalGal on August 04, 2008 at 23:05:38:

Michael Morrongiello, David Butler and John Behle, does what Nick said
sound like something that deserves to be investigated? It sounds like it
would be simple enough to look into it. Nick seems sincere and I’m sure
several of us would like to know what seasoned pros think of this so
called opportunity.

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Re: Anyones Opinion on this new Note Buyer - Posted by Herbster

Posted by Herbster on July 28, 2008 at 06:15:29:

Thanks all, Yep I’m going to keep a lot of distance from this program and tell a few others as well. Herbster

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Re: Almost too good to be… - Posted by Herbster

Posted by Herbster on July 27, 2008 at 18:45:17:

Sorry Mike it works for me. Give this a try http://www.magicbullets.com/forum/showthread.php?t=10406

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Re: Too good to be true…often is - Posted by brandoncbsre

Posted by brandoncbsre on July 27, 2008 at 16:03:39:

www.IProvidetheCash.com

Original poster placed a space in between letters. I actually ran across this site a couple of weeks ago…I’ll stick to something else.

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Re: Shadow Thread… - Posted by David Butler

Posted by David Butler on August 05, 2008 at 10:30:48:

Hello SoCalGal,

Actually, Mike has made a very eloquent reply already in this thread, and it is on the money in my view. You can access it by clicking back up on the original post here… at the bottom of that post, you’ll see that a thread of multiple replies, including Mike’s, is included there. Simply click on his replies, and others as well, including Brian Carter’s, and you’ll find some detailed commentary that covers the topic quite well. Hope that helps, and…

Have Fun For A Living!

David P. Butler
www.hotspurinvestmentgroup.com