Published on February 26, 2009
Week 8: Banks & Loans / “Tapes” The 8 – Week Roadmap to Launching into Notes 1
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”)? 2
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 3
“Speaking” (example dialogue –hat tip Will) • You: Hello, how are you? (emphasize quot;how are youquot;, 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... 4
“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? 5
“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. 6
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 quot;poolsquot; 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 8
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. 9
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 11
What do you actually receive once you’ve “gotten through”? • Singles • Pools / Tapes 12
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 … 13
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