purchasing 1st position note from bank

I was on Peter Conti’s back flip webinar a couple of weeks ago about residential back flips. I’m to find the sellers and get a $5,000 to $10,000 fee for doing so. It looks like he makes $60,000 to $80,000 on the deal. These properties have jumbo mortgages and are held in the bank’s portfolio and not packaged as mortgage securities, like smaller mortgages are. I would have to pay him $1,000 to join his group. I think I could do this myself and keep all the money. I have a seller with a jumbo mortgage for $800,000 and a second for $100,000. The property was purchased in 2002 for $1,215,000.
Todays’ value is probably $800,000. The owner tried a short sale about a year ago and he is current with his payments. The 1st mortgage is with Wells Fargo. What’s the chances of me purchasing this note from Wells Fargo for a large enough discount for me to make a profit. I have investors that can come up with the money. Also how do I approach Wells Fargo? You can email me:
larrywalton22@gmail.com

In today’s business environment, getting a bank to sell you a 1st position note is IMO…slim to none.

There are simply too many things that could go wrong and the bank might be held culpable for your actions.

And, I always ask the question, “If it is this easy, why is someone selling books and tapes on how to do it and not doing it themselves…and…as you say…keeping all the $$$.”

My vote is dont waste your money on the 1000 dollar backflip club.

If you want to buy notes then contact a note broker.

buying note from bank

Larry, Also consider that if the loan you may want to buy is still a performing note, why would the bank want to sell a a deep discount? Same as why the payor could get a short sale done if the payments are current.

Ive seen lots of commercial deals where theyre auctioning the note vs going through the foreclosure process themselves. Check LoopNet. There were hundreds awhile back. Might be some good ones where you can make some good money on a workout…I think I grabbed a webinar off itunes on Commercial Back Flips by the same guys.

[QUOTE=Brandon (NE Indiana);885042]Ive seen lots of commercial deals where theyre auctioning the note vs going through the foreclosure process themselves. Check LoopNet. There were hundreds awhile back. Might be some good ones where you can make some good money on a workout…I think I grabbed a webinar off itunes on Commercial Back Flips by the same guys.[/QUOTE]

Did you happen to notice who the seller of the note was when you spotted the deals on offer? Where these notes that were sold by a bank at some prior point so the present note holder is trying to flip it?

The bigger guys will occasionally sell off a block of non performing notes, but its usually a bigger purchase than guys like us can do. Also, I’d be surprised if they were holding the paper even on jumbos. I dont have expertise in this area, though. Like was said, the odds of Wells Fargo playing ball on that is slim to none. Your target if you were doing that kinda thing for residential is small local banks. The big guys are too structured and full of idiots with no authority to do anything to ever do anything creative.

It is easier to come by commercial note sellers, since they aren’t securitized and there are sites online that offer them up. I was looking at a few a month or two ago, cant remember the names, though. Interesting stuff. The smaller banks may play ball on residential as well, as they usually keep the loans in house.

Its a viable strategy if you stumbled onto the deal, but what you described doesn’t make much sense, as stated, the bank isn’t going to sell a performing note at a discount. Keep in mind, as investors, we create value by solving problems. The bank with a current note in its portfolio doesnt have much of a problem.

And I dont know much about Peter Conti or his program, but $1k to join a club where they are making money on the deal sounds sketchy. I’m all about books and courses and such, but that one seems a bit off on the surface, especially since it appears you need more education on how it all fits together to find deals.

[QUOTE=John_Corey;885049]Did you happen to notice who the seller of the note was when you spotted the deals on offer? Where these notes that were sold by a bank at some prior point so the present note holder is trying to flip it?[/QUOTE]

Pretty sure it was a lender vs a flipper.