Due Diligence is key to successful and safe note investing. In this video Dave Franecki shares the 6 Key Factors of Note Due Diligence
When it comes to Note Seasoning…
Note seasoning and verifiable payments make up the two most important factors of Due Diligence. As such, I’ve created this video to help walk you through the ins and outs of good NOTE SEASONING so that you can really capitalize on good investments, and make sure your notes retain maximum value.
Note investing without the right amount of note seasoning is just a recipe for disaster!
It’s our job to make sure that as a buyer, AND as a seller, that you have the right tools for the job. That’s why we’ve dedicated an entire youtube channel just for you!
Note seasoning is simply – how long the buyer has been paying on the note. What does their payment history look like? Is it steady and consistent? Do they have repeated late payments? Is there missing documentation to prove the payments have been made on time? Taking all of these into account will make for a much stronger note buying and selling experience – and will maximize the value of your note! As part of the due diligence on both ends, it’s important as a buyer AND a seller that you know this information.
Are you looking for help with note seasoning? Let us help! Head on over to or contact page and let’s get in touch! I’d love to help speak to you about how we can make your note buying or selling experience a success! CLICK HERE.
SO LET’S GET STARTED. Click the video above for more info on the importance of note seasoning. Note investing doesn’t have to be hard – with the right tools for the job, and the right people on your side, you can ensure that your cake will be baked to perfection! Talk more soon!
Welcome! We’re so glad you stopped in. Below is a helpful list of resources we hope you find to be most helpful. If you stopped by, please leave a comment below on what your note seasoning process looks like! Don’t forget to like and subscribe to our youtube channel!!!
Dave Franecki EXPERTISE:
Mortgages and creative financing,
building and development
Generating passive income for long term wealth
Real estate deal-making
high volume REO agent
With over 30 years in the industry – let me help walk you through the oftentimes confusing world of note selling.
What’s My Note Worth?
A question all note sellers have and have a right to know.
Timing Your Mortgage Note Sale is everything.
So, when is the correct time to sell your mortgage note?
Today I cam across this article title,” The Three Ds of Doom: Debt, Default, Depression”. Without sounding negative, it certainly makes one think about the current economy. Everything appears to be booming, at least here in the greater Phoenix Metroplex. But………..what is under the covers. What goes up always comes down. It is a fact of life. Now apply this to the niche business. It is the paper side of real estate.
In the very near future, Capstone will be launching a Utube note training series on buying Notes. One of the topics as part of the due diligence series will be a deep dive into Investment to Value and Loan to Value. In other words, what is the note buyers safety net in the event of a downturn. How to minimize the pain in your portfolio. The only way I know is to have an EQUITY SPREAD. For instance, if a note has a $100,000 unpaid loan balance (aka UPB), what is your risk tolerance. What safety net do you require? The Capstone safety net is an Investment to Value (ITV) not exceeding 65% and a Loan to Value not exceeding 70%. Some say this is too big a filter. I guess time will tell. Anyway–moving on to the article.
The Three Ds of Doom: Debt, Default, Depression
July 17, 2019
“Borrowing our way out of debt” generates the three Ds of Doom: debt leads to default which ushers in Depression.
Let’s start by defining Economic Depression: a Depression is a Recession that isn’t fixed by conventional fiscal and monetary stimulus. In other words, when a recession drags on despite massive fiscal and monetary stimulus being thrown into the economy, then the stimulus-resistant stagnation is called a Depression. Read more
The August 7th Note Investors Forum Meetup focus on:
TOPICS: Several New Case Studies
Where Does a New Note Investor Begin
Bring your questions, This will be an interactive meeting.
The Next Note Investors Forum Meeting will be
Wednesday, August 7th 11:30am-1:30pm
La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa
As discussed in my prior blog, Note workouts are not rocket science. It is a matter of treating every party fairly.
CASE STUDY 2
This 2nd case study happened on a 2nd Mishawaka, IN property. My
partner & I bought a non-performing note(NPN) in October, 2014. The payor had become functionally unable to do anything due to a debilitating disease and had been out of the house for 2 years. We tried a workout which was not viable but did get a deed in lieu of foreclosure with cash for keys.
After fixing the place up, we found a recently divorced lady. She was happy with a probtionary rent-to-own for 12 months a and Seller-carry to follow with 10% down. She was also qualified by an RMLO oer Dodd-Frank. We sold the 1st note to a partial note investor and kept the second.
Fast forward, the payor stopped paying due to illness. Again we developed a good working relationship with her. After a series of discussions, she confirmed that she really did want to stay and agreed to a loan modification. The “we” was the partial note buyer.
The end result is after consulting with our legal counsel and her daughter, the payor signed a Quit Claim deed to be held in escrow and agreed to a payoff schedule for her to get caught up on the back payments. If she falls behind on any payment for more than 15 days we can record the Quit Claim deed. My company will own the house. We have avoided the the foreclosure process to boot. The bottom line: the payor is happy and agreed to bring the loan current, the partial buyer is happy as she is geting paid, my partner is happy as we are both collecting on our second and have avoided a negative situation –the long forfeiture process.. This was/is a total win-win.
Potentially, we may have to record the deed and rehab, but for now it is all good.
Join us Wednesday September 5th 11:30am.
Lunch at the Note Investors Forum Meetup
Trust Basics For Notes & Real Property
What Every Note & Real Estate Investor Needs to Know
Why trusts should be utilized in the Note/Real Estate Arena.
We’ll drill down into what works & does not work.
Practical hands on application for a ROTH IRA
will be Wednesday, August 1st 11:30am-1:30pm
La Famiglia Restaurant, SE corner of Dobson & Guadalupe, Mesa
Note Due Diligence 201
one offs or a pool of assets.
Expect standing room only. The room is maxed out @ 50 attendees.
Buffet lunch served.