I am writing a series of 5 blogs to explain the steps any
investor would need to follow to profit from NON-Performing Mortgage Notes.
The business model I created is called the FACTS system:
F for Finding the Non- Performing Notes
A for Analyzing the list of Notes
C for Controlling the list to negotiate price
T for Timing the due diligence and closing
S for Strategizing to make the most profit
This is Blog 1 of the FACTS system that I created for the
Non-Performing Notes business. This Blog clarifies the F part to “FIND the list
of Banks that would sell Notes”.
Obviously, you can pay a lot less for a NON- Performing Note
than you would for a Performing one. And if you know what you are doing as I
will explain in this series of Blogs, you could make a lot of money in a very
short period of time with a high level of safety since the Non-Performing Note
is always secured by a real estate property.
So how do you find a bank that is interested, willing and
able to sell you some of the Notes they may have?
The answer is: Find a failed local community first and
contact them to get to the key executive in charge of selling Mortgage Notes.
Google: “Failed Community Banks” and you will get a list of
banks. Search for the phone number of a local branch in your city and call.
Ask for the Manager or the executive in charge of loan work
outs, modifications, or foreclosures.
Once you get to an executive, tell him/her the following: “I
am not sure if you are the right person I am looking for but I need to talk to
the executive handling the sale of Performing and Non- Performing Mortgage
Notes”.
Once you get to the right party ask them:
1)
Do you sell Performing and Non- Performing
Notes?
2)
Do you have any local Notes?
3)
Would you sell individual Notes?
4)
If it is a list, is it divided by type of
property, such residential or commercial?
5)
Can I get access to a list of Notes to review
and assess if I want to make an offer?
6)
What kind of action do I need to take to receive
a list? (ie proof of funds)
7)
How long will I have to do my due diligence?
(Usually 30-45 days)
8)
How often do you sell/assign Notes?
9)
Do you use an in-house attorney or an outside
firm to foreclose?
10) What
steps do I need to follow to start the process with your bank?
In the next few
Blogs, I will clarify what you are looking for and the steps you will need to
follow to Analyze, Control, Time and Strategize for a huge profit in this
untapped and limited business opportunity.
Wishing you much success,
Cherif Medawar
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