Mousing Around With Mortgage Notes

When you are at Disney, everyone tells you to have a Magical Day. Well Jen and I spent three Magical Days at Disney World in Orlando. It was all work of course. We attended Scott Carson's Note Mastermind. During our conference we presented our business model to others and heard how they conduct business as well. We learned quite a bit and were able to round out a couple of business ideas that were floating around in my head. And as you can see in the photo, we also made some new friends. Yes, we're mousing around, but we're working hard. Honest!!

Part of the Note Mastermind is the big note draft that is held a week after we return. And we had the #1 Draft Pick!! This week we bid on three assets in Akron, OH. We'll know within a few days if we got them or not. We also had five bids accepted and we're currently in due diligence. They are multifamily properties throughout the Midwest. Two in Ohio, one in Michigan, one in Illinois and one over in Iowa. We will close on these assets sometime next week.

For those not familiar with investing in non-performing notes, just because you buy the note, doesn't mean you are buying the property. The first thing we do after closing the deal is hire a non-profit outreach to make contact with the borrowers and hear their story. Since we are getting these notes at steep discounts, sometimes we're able to work out new payment plans. Most of these will become re-performing notes and after a few months of "seasoning", we'll sell them as performing notes for a capital gain. For those that no longer wish to pay on the note, we'll offer Cash for Keys to help them move. Then the property will be signed over to us. Once we have the property, the plan is to upgrade the assets, lease up the units, season them for 10-12 months of rents and then sell them as performing Turnkey assets for a huge capital gain. So with either model, we are receiving passive income during the seasoning period and then we will have our capital returned with some profit. 

We have been buying in Ohio, Indiana and Missouri. We are now expanding into Michigan, Illinois and Iowa. Stay tuned for details coming out about our latest acquisitions. 

Need a place to park your SDIRA or Solo 401k? Investing in notes is a great way to increase your returns.

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