I am writing from Note Summit 2, in Denver Colorado.
This afternoon’s session covered topics related to performing notes, which we in our circles tend to not discuss much. (We mostly look for non-performing notes that we can buy at a discount.)
Today’s speakers were Gerald Lemoine and Bill Mencarow. Gerald buys re-performing notes from a large investment company and Bill buys performing notes from private note holders.
Miscellaneous notes:
When buying non-performing notes, we don’t uinderwrite the borrower, only the property.
If the borrower is underwater, we don’t care about UPB.
Both men talked about selling streams of payments. Fascinating option that we note investors need to be more familiar with. For example….buy a note, sell the first “n” payments to another investor for the amount you paid for the note. You have all of your capital back, and all the remaining payments belong to you even though you have no money in the deal.
