Week 8: Banks & Loans / “Tapes”
The 8 – Week Roadmap to Launching into Notes
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Agenda
Following the Roadmap Step-by-Step:
• The 4 Sources
• Unsolicited
• Other Investors
• Brokers
Banks
•
• What to expect FROM the banks (e.g. what do you
receive once you’ve “gotten through”)?
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Banks
• Master your ability to “speak” to the banks
• Perfect your vocabulary
• Practice, practice, practice – learning how to “speak”
or to “dialogue” is key here
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“Speaking” (example dialogue –hat tip Will)
• You: Hello, how are you? (emphasize \"how are you\", it
will get their attention and will feel the need to ask you
the same)
Operator: I'm good, how are you doing today?
You: I'm good, I'm here in sunny South Florida
enjoying the weather! ( Try to use your own little jokes
please, since most of you are not from sunny South
Florida...
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“Speaking” (example dialogue – cont.)
• You: Well, I was wondering if you could help me.
Before I just ask you for a particular dept,, let me just
tell you what it is that I do and then maybe, with your
experience, you can better direct me to the right
person or department. Is that ok?
• Operator: Sure, of course
• You: I have an investment company and we buy
defaulted or non-performing mortgage loans form
banks and lending intuitions. Can you tell which
person or department I would talk too?
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“Speaking” (example dialogue – cont.)
• Operator: ...so, you need to get in contact with the
dept which deals with defaulted or non-performing
mortgage notes...
• You: Yes … I need to speak with the person or dept
which focuses on the selling of their discounted or non
performing mortgage loans.
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Example dialogue (Voicemail?)
Hello Mr. or Ms. X,
My name is William S. and I'm with CRE Investments.
Our company buys non-performing or
defaulted Mortgage loans secured by single family
homes. We're pretty well capitalized and we're looking
to buy individual as well as \"pools\" of notes.
If you would, please call me at 305-519-5442.
Thank you and have a nice day.
If bank contact does not answer, I always leave a
message... 14 of my 15 request for company info
resulted from a messages left. 7

Example dialogue (email)
• “Here is the situation with the notes, most of which I
got from him on the phone after talking with him
extensively today (thanks to learning how to talk to
lenders on the phone from you)”
• Q - What are your pricing expectations?
• A - Since the notes where originated at 65% of
appraised value he is looking to get between 60 to 70
percent of UPB.
• Q - When do you want the bids by?
• A - As soon as possible
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Example dialogue (email – cont.)
• Q - Do you have any pricing color that you can share
with me, by that I mean what are the ranges that other
bids have come in at?
• A - We are the only ones bidding on it.
• Q - Will I be allowed to carve out portions of the pool?
• He does not mind carving out but I think we can get
the best discount if we buy all
• Q - What are your firms policies and procedures for
selling this product?
• They are a Dad and Son hard money lender.
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Example dialogue (email – cont.)
• Q - Is the servicing of the assets in the pool done in
house or outsourced?
• A - All in house
• Q - Has legal action been taken on the nonperforming
assets, have the Notice of Default been filed?
• A - Yes
• Q - Are any of the borrowers of the nonperforming
assets in Bankruptcy (BK)?
• A - Yes some of them are
• Q - When was the last time BPO's were done on the
assets?
• A - I think at origination 10

Perfect your Vocabulary
• Doc Toolkit – Glossary of Terms
• A Note on Notes and DOTs …
Note
Note Security
Instrument
???
Security
Instrument
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What do you actually receive once you’ve “gotten
through”?
• Singles
• Pools / Tapes
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Next – Broker – How to Get Started
February 25: 5pm PT, 8pm ET
“Brokering: How to Get Started” – with Sherry Nickels
Taking you through your very first steps in brokering
notes …
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