Launching into Note Buying
A Roadmap and Primer




                             1
Overview: Mortgages

•   Wild market
•   50M Homeowners (assume 1 mtge/homeowner)
•   $100K estimated avg mortgage size
• ...
Overview: Mortgage Derivatives


   • Much larger markets
   • Mortgage-backed securities
   • CMO’s
   • More $Trillions
...
Conclusions on the Market


   • Volume of default will far outweigh bailout $
     available
   • Key driver to default i...
Opportunity


   • Banks holding loans (“portfolio’ing” banks:
     regionals, locals, FCU’s)
   • “Non-targeted” institut...
Opportunity (cont.)
            (cont )

    • The “last mile” always wins
    • Baby Bells and POTS

   The Last Mile in ...
How to Get Ready for the “Last Mile”


   • It will take you no more than 8 weeks to get
     “launched”

   • Know how to...
The 8-Week Road To Launch
    8 Week

 • Week 1: Learn to use at least 3 desktop-based property
                          ...
The 8-Week Road To Launch
    8 Week

 • Week 5: Learn the 5 Exit Strategies drill down through
                          ...
How to Get Going: Week 1


   • Week 1 – Valuation Review & Assignments
   • 1200 Hope St Denton TX
               St, Den...
How to Get Going: Week 2


   • Week 2 – Title Review
   • Source Documents County Assessor (Taxes)
            Documents,...
How to Get Going: Week 3


   • Week 3 – How To Bid
   • Lender is in bankruptcy
   • Final assets being “disposed of”
   ...
How to Get Going: Week 4


   • Week 4 – “Closing”, loan docs / purchase docs

   • S th D
     See the Document T lkit
  ...
How to Get Going: Week 5


   • Week 5 – Exit Strategies & Foreclosure

   • B        f “E   ti   ”
     Beware of “Except...
How to Get Going: Week 6


   • Week 6 – Servicing your Note

   • T lk to a Servicer – PLM FCI, Note Servicing
     Talk ...
How to Get Going: Week 7


   • Week 7 – Finding Notes

   Direct
   Di t
   • LaneGuide.com
   • Y ll
      Yellow PPages...
How to Get Going: Week 8


   • Week 8 – Find, Bid, Buy

   • Y are READY!
     You

   • If you don’t have $ - refer to a...
How to Get Going: Denton TX – the Plan?


   • Buy, Re-Write or Foreclose

   • $75 85K purchase
     $75-85K     h

   • ...
Call To Action - Your Opportunity TONIGHT
Call-To-Action



   A-Z Profiting from Discounted Mortgages Business-
   in-a-B...
Call To Action - Your Opportunity TONIGHT
Call-To-Action


  SPECIAL FOR TONIGHT ONLY:
  • Promo Code ‘700’ (to be filled ...
Call To Action - Your Opportunity TONIGHT
Call-To-Action


  Fast Action BONUS:
  • First three sign-ups g 60 days PAC for...
Next Week


  How to Talk to a Banker
  • Practice Conversations
  • How to – Opportunity to Practice Yourself (3 lucky
  ...
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Note Buying - How to get Started w 8 Weeks & Market Overview NoteBuyingProfits.com

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Note Buying - How to get Started w 8 Weeks & Market Overview NoteBuyingProfits.com

  1. 1. Launching into Note Buying A Roadmap and Primer 1
  2. 2. Overview: Mortgages • Wild market • 50M Homeowners (assume 1 mtge/homeowner) • $100K estimated avg mortgage size • $5Trillion in mortgages • Up to 10% non-performing (e.g. delinquent in some way)) • $500B in non-performing mortgages p g g g 2
  3. 3. Overview: Mortgage Derivatives • Much larger markets • Mortgage-backed securities • CMO’s • More $Trillions • Credit Default Swaps ( p (unknown volume – AIG) ) • Add in Credit Card, Auto … ALL potential targets of a “government bailout” government bailout 3
  4. 4. Conclusions on the Market • Volume of default will far outweigh bailout $ available • Key driver to default is home value depreciation + employment • Values still falling – Foreclosure volumes = leading indicator 105K prime FC’s (July 08), 92K subprime FC’s (July 08) – 10% gain from June 08 • Unemployment (up from 4 7% to 6 1% – Aug 07- 4.7% 6.1% 07 Aug 08 - 30% increase!) • CA only (up from 5 5% to 7 7% - 40% increase!) 5.5% 7.7% 4
  5. 5. Opportunity • Banks holding loans (“portfolio’ing” banks: regionals, locals, FCU’s) • “Non-targeted” institutions (To be determined) • I tit ti Institutions with lots of non-performing assets ith l t f f i t • Treasury – T A R P (Troubled Asset Resolution T.A.R.P Program) • Possibly lots MORE activity (price discovery discovery, capitalization need) • P Possibly NEW sources (h d f d private ibl (hedge funds, i t equity funds, other “TARP Servicers”) 5
  6. 6. Opportunity (cont.) (cont ) • The “last mile” always wins • Baby Bells and POTS The Last Mile in Non-Performing Notes • You and your “local” area • O You as the Workout Specialist Or Y th W k t S i li t 6
  7. 7. How to Get Ready for the “Last Mile” • It will take you no more than 8 weeks to get “launched” • Know how to Find Notes • Know what Price to Offer in order to make a profit • Know How to Close on a Deal • Know What to Do Once You’ve Bought your first Deal 7
  8. 8. The 8-Week Road To Launch 8 Week • Week 1: Learn to use at least 3 desktop-based property desktop based valuation tools, and learn how to get the most out of realtors. • Week 2: Find out which vendors you can use to help you research title work, and gain hands-on practice “underwriting” (performing due diligence on) a note. • Week 3: Learn the principles of negotiating bank notes. Learn the steps in a bid process, how to maximize the value of your bid, and how to beat out others bidding on the same note note. • Week 4: Learn what it takes to actually “Close” on a note – review the “closing” process, including the principles of negotiating bank notes. 8
  9. 9. The 8-Week Road To Launch 8 Week • Week 5: Learn the 5 Exit Strategies drill down through Strategies, examples of foreclosure from the point of view of the bank (get the foreclosure process down pat). • Week 6: Learn the basics of servicing a Note and of taking a property back after a foreclosure (Real-Estate Owned or REO). • Week 7: Learn the 4 ways to find bank notes – and start off by practicing using brokers, other investors, and the shotgun approach. • Week 8: Review Finding Notes, and tackle Source#4 – Banks & Other Sellers. Sign up with an online note broker to review complete data tapes; break through to at least 1 bank that sells notes. Bid on at least 3 notes. 9
  10. 10. How to Get Going: Week 1 • Week 1 – Valuation Review & Assignments • 1200 Hope St Denton TX St, Denton, • Realquest, Trulia, Zillow • Plus – Realtors • OBJECTIVE: Buying a Note and MAKING A PROFIT! 10
  11. 11. How to Get Going: Week 2 • Week 2 – Title Review • Source Documents County Assessor (Taxes) Documents, • OBJECTIVE: Buying a Note and MAKING A PROFIT! 11
  12. 12. How to Get Going: Week 3 • Week 3 – How To Bid • Lender is in bankruptcy • Final assets being “disposed of” • Lack of oversight / good asset management • No active foreclosure, but loan is in default , • Good opportunity – solid market – 55 – 65% • OBJECTIVE: Buying a Note and MAKING A PROFIT! y g 12
  13. 13. How to Get Going: Week 4 • Week 4 – “Closing”, loan docs / purchase docs • S th D See the Document T lkit t Toolkit www.NoteBuyingProfits.com/toolkits.html • OBJECTIVE: Buying a Note and MAKING A PROFIT! 13
  14. 14. How to Get Going: Week 5 • Week 5 – Exit Strategies & Foreclosure • B f “E ti ” Beware of “Exceptions” … review H i Home E it Equity Foreclosure Texas www.ExpertLaw.com • Talk to the Seller – death in family, probate, dispute between wife and brother • OBJECTIVE: Buying a Note and MAKING A PROFIT! 14
  15. 15. How to Get Going: Week 6 • Week 6 – Servicing your Note • T lk to a Servicer – PLM FCI, Note Servicing Talk t S i PLM, FCI N t S i i Center, Trust Accounting Center, SPS, SLS – how do you service what does a contract look like? service, • OBJECTIVE: Buying a Note and MAKING A PROFIT! 15
  16. 16. How to Get Going: Week 7 • Week 7 – Finding Notes Direct Di t • LaneGuide.com • Y ll Yellow PPages • Network, network, network Indirect I di • Brokers • Title, Trustees • OBJECTIVE: Buying a Note and MAKING A PROFIT! 16
  17. 17. How to Get Going: Week 8 • Week 8 – Find, Bid, Buy • Y are READY! You • If you don’t have $ - refer to another Note Buyer, y y , use the PAC Forum – post a note for sale, contact us • 1% Referral Fee, Trailing Revenues (6 months) • If you DO have $ - then BUY o ha e • OBJECTIVE: Buying a Note and MAKING A PROFIT! 17
  18. 18. How to Get Going: Denton TX – the Plan? • Buy, Re-Write or Foreclose • $75 85K purchase $75-85K h • Reinstate – 18 months @ $1,088 plus monthly , p y • OR – foreclose (possible upside in equity) • OR – refinance with borrower who qualifies for new loan • OBJECTIVE: Buying a Note and MAKING A PROFIT! 18
  19. 19. Call To Action - Your Opportunity TONIGHT Call-To-Action A-Z Profiting from Discounted Mortgages Business- in-a-Box in a Box’ – 16 hours+ of Video Training plus LOTS of Training, bonuses www.NoteBuyingProfits.com/preorder.html N B i P fi / d h l 19
  20. 20. Call To Action - Your Opportunity TONIGHT Call-To-Action SPECIAL FOR TONIGHT ONLY: • Promo Code ‘700’ (to be filled in at the TOP ( RIGHT of the order page where you put in your CC info): • 5% off of our package deal • G d through 12 Good th h 12pm EST t i ht ONLY tonight www.NoteBuyingProfits.com/preorder.html 20
  21. 21. Call To Action - Your Opportunity TONIGHT Call-To-Action Fast Action BONUS: • First three sign-ups g 60 days PAC for free g p get y (rather than 30) • NOTE: This includes the ‘8-Week Roadmap , the 8-Week Roadmap’ 23 pages of check lists, the Resources Section, the DOCUMENT TOOLKIT, the basic ‘how to raise money’ toolkit, and more bonuses… www.NoteBuyingProfits.com/preorder.html www NoteBuyingProfits com/preorder html 21
  22. 22. Next Week How to Talk to a Banker • Practice Conversations • How to – Opportunity to Practice Yourself (3 lucky participants) • How to – I will give a few example conversations (easy i t ’ and h d i t ’ ) ( intro’s d harder intro’s) • With our Banker … Saprina 22

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