How to Buy Defaulted Mortgages - ‘Why don’t you give me a list of banks that sell in your Note Buying Program?’
On how to buy defaulted mortgages:
OK, so I just officially received the “where do I find the list of banks that sell?” question now for the 58th time (I’m not kidding here).
So it’s obviously on a lot of your minds.
And it was on my mind when I finished my very first course on How to Buy Notes almost 4 years ago now.
In fact, that was the MOST important question I wanted to ask Mark - my instructor. And it was the MOST pressing on our minds.
And so … at the end of a 3-day workshop I spent with him … I was so tense and ready to just GET THE LIST OF BANKS THAT SELL NOTES.
Goddamit, I thought. Why didn’t he just give me the list at the beginning of the course to just get the tension out of the air so that we could all focus on now what to DO with that list?
So it was with great anticipation that Mark handed me - handed us - the Magic Binder of banks that sell.
I wolfed it down. I skimmed every page for nuggets, details, of every bank that “the Master” knew sold notes.
And here’s what happened. Here’s what I did with that information.
Exactly … nothing.
Why?
Well, let me walk you through what happened after the course was over.
Here’s what happened after Mark handed me a binder full of the names of banks that sold notes:
a) A number of the banks didn’t exist anymore (if I had included Indymac on the list of banks that sell notes a few months ago, you’d be disappointed in me now since you’d probably end up having to negotiate through the FDIC rather than Indymac)
b) The phone numbers were just the main numbers for the banks themselves - which I had access to using Lane Guide or even Google
c) Some banks on the list that had sold notes, I was told when I called them, didn’t any longer (so they told me - however whether they would mention something differently to him I didn’t know)
d) Some banks that were not on the list, did sell notes
e) Once I had the name of the bank itself, I still had to make my presentation to the right person - and that had more to do with what I needed to talk to the banker about than about whether the bank sold notes or not
And finally, here’s what happened to the list of banks, and that binder. It’s sitting on my bookshelf now. I’ve thought about copying it and distributing it - since it would probably be no less useful now than it was 4 years ago when I was leafing through it.
So what’s my point here?
The list of banks that sells notes and defaulted mortgages is huge.
And it’s based, in almost all situations, on who you know.
I know less than a huge amount of banks that sell notes. In fact, the people that know the list inside and out more than anyone are … hmm, well let’s think about this for a minute.
a) I know - personally here - less than 3 dozen banks and lenders that sell defaulted mortgages in today’s market
b) The people I know well in this industry who run $1-50 million fund buy from less than 20 lenders in any given year. Most have less than 10 people that they buy from (or through - good brokers are a good find in this industry - treat them well)
c) One of my colleagues spent 7 years buying from The Associates - that was his EXCLUSIVE seller - it still boggles my mind, but he became very wealthy from that one relationship
d) Everyone who’s a “professional” note buyer has one thing in common
… and here’s *** THE SECRET *** - so listen carefully …
That secret is … they know how to talk the talk. They know what the talk is, what to ask for, how to ask for it, and what to do with the information once they’ve found it.
(May I say, you will be pretty dang good at that as well, even WITHOUT having bought your first note yet, if you thoroughly digest the 16 hours of training I am giving you in the ‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘.)
There.
Did you just hear that?
Did you get what I just said?
Let me put it another way as a friend of mine once told me: “It’s not about what you know it’s about what you do with what you know.”
So picture for a moment that the most knowledgeable of all Note Buyers (think of this person as the Zen Master of Note Buying) and you are on the 20th floor of a New York City apartment building looking out over the Lower East Side. The view is magnificent, but we don’t really hear the city at all, so she asks you out onto the fire escape.
You crawl out through the open window, and there, with the noisy backdrop of honking cabs and the rumbling of air conditioning fans, she grabs your arm and points out to the high buildings all across the horizon.
And then she says, in a hushed voice: “There they are.”
You glance at her, quizzically.
“Who is there?” you ask.
“They are,” she answers. “The ones you are looking for.”
You look out to where her arm is pointing, but her arm is moving in a gentle arc all the way from your far left to your far right.
Now, you’re really clueless. You’re about ready to ask her to explain what she means, but she cuts you off.
“I sense your doubts,” she says, and then continues.
“Let me tell you a story.”
And she begins to tell you a story about the time she learned from her master, and what he did to teach her where to look for the Fountains of Perpetual Notes, as he called it.
And she recounts the four words that he told her, in a similarly hushed tone: “Look for the suffering,”
“So now,” she whispers to you, her arm still pointing over the buildings lighting up New York’s night sky, “I tell you. Look for the suffering and there you will find the Fountains of Perpetual Notes.”
And she takes you back into the apartment there on the 20th floor in the Lower East Side.
Look for the suffering. Fountain of perpetual notes.
What the ?@#! All I’m looking for is a list of banks that sell notes!
The suffering right now is EVERYWHERE. There are very few lenders that do not have non-performing assets on their books.
There are many, many, many lenders that are selling notes right now, to investors they know and to investors they do not know.
===> There are even more lenders that are being forced to sell notes right now, to investors they do not know.
There are many investors that are calling up those lenders asking to be put on the “list” of approved investors. If I were to give you the list of banks that I know sell, it would be like telling you to go pick a number and to stand in line at Katz’s deli at lunch rush-hour on a weekday.
Instead, go “Look for the suffering”.
And approach this with the belief that every lender sells. It’s not a question of “if” - but “to whom”.
I hope you you enjoyed this info on how to buy defaulted mortgages.
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