Comments for Note Investor | Note Buyer | Note Broker | Find Cash Flow Notes http://noteinvestor.com Everything you need to know to Buy, Sell, or Create a Note! Wed, 16 May 2012 00:56:04 +0000 hourly 1 http://wordpress.org/?v=3.3 Comment on Russ Dalbey’s Winning in the Cash Flow Business In FTC Lawsuit by Rick Miksell http://noteinvestor.com/note-brokers/russ-dalbey-winning-in-cash-flow-business-in-ftc-lawsuit/comment-page-1/#comment-19627 Rick Miksell Wed, 16 May 2012 00:56:04 +0000 http://noteinvestor.com/?p=2489#comment-19627 I sent out thousands of postcards trying to get people to call me. I had 6 people call me and no deals went through. It wasn't just the money but all the time involved and I did not make a dime. I followed all his steps exactly and even put smiley faces on all the post cards and signed everyone. So I wasted over $5000. I even took the extra coaching course. I sent out thousands of postcards trying to get people to call me. I had 6 people call me and no deals went through. It wasn’t just the money but all the time involved and I did not make a dime. I followed all his steps exactly and even put smiley faces on all the post cards and signed everyone. So I wasted over $5000. I even took the extra coaching course.

]]> Comment on Is For Sale By Owner The Best Place to Find Notes? by Kent Anderson http://noteinvestor.com/note-brokers/findnotes-for-sale-by-owner/comment-page-1/#comment-19544 Kent Anderson Thu, 10 May 2012 19:21:18 +0000 http://noteinvestor.com/?p=3392#comment-19544 Frank, honest and well written article Fred, thanks. I agree with all your points wholeheartedly, especially the 1 out of 500 result. Personally, I still call on FSBOs but mostly for the real estate side of my house and note buying business looking for a Sub 2 purchase or seller financing. The majority are “just curious” sellers. Calling on FSBOs does accomplish one very important thing, it gets you good at “talking about the business” and making cold calls which is imperative for success in business. Yet, like you say, time is our most valuable asset and a better use of time is working with note sellers that actually have a note in their hand. Frank, honest and well written article Fred, thanks. I agree with all your points wholeheartedly, especially the 1 out of 500 result. Personally, I still call on FSBOs but mostly for the real estate side of my house and note buying business looking for a Sub 2 purchase or seller financing. The majority are “just curious” sellers. Calling on FSBOs does accomplish one very important thing, it gets you good at “talking about the business” and making cold calls which is imperative for success in business. Yet, like you say, time is our most valuable asset and a better use of time is working with note sellers that actually have a note in their hand.

]]> Comment on Is For Sale By Owner The Best Place to Find Notes? by Marc Faulkner http://noteinvestor.com/note-brokers/findnotes-for-sale-by-owner/comment-page-1/#comment-19540 Marc Faulkner Thu, 10 May 2012 15:21:57 +0000 http://noteinvestor.com/?p=3392#comment-19540 Great content here! Chasing FSBO's to find notes is definitely not the most productive use of your time. Great content here! Chasing FSBO’s to find notes is definitely not the most productive use of your time.

]]> Comment on Self-Directed IRA Custodians Sued by Investors by David Coe http://noteinvestor.com/buy-notes/self-directed-ira-lawsuit/comment-page-1/#comment-19437 David Coe Fri, 04 May 2012 16:49:36 +0000 http://noteinvestor.com/?p=3423#comment-19437 Tracy, good article. I think the issue to be determined on the pending SD IRA lawsuits has to do with negligence, not fraud. Where I think the custodians are most vulnerable is not on the investment vetting side. If you've ever asked a custodian for a recommendation or point of view of any kind, they are very careful to not give advice. And while the court will have to determine the custodian's role in vetting the investment provider, I believe the term self-directed will ultimately hold up in court. Where they're going to run into trouble is negligence. And not intentional negligence, but the type of negligence that surfaces when you're in a low margin business that is expanding very quickly. Staffing and training are a real problem right now in this industry and mistakes like those described in the WSJ article are probably rampant: "She said she received regular account statements, first from Equity Trust and then from a second custodian, showing nearly $20,000 in the account—even after she learned that the investments had failed." This wasn't because the custodian was in on the scam. They just never received any notice that the money was gone. Why would they? It's not their job to manage the investment or the provider, only to "custodian" the investment on behalf of the client's IRA. The answer? I usually advise clients to stick to the bigger brands, although the 2 named in the article are 2 of the biggest and most established. Your best bet is to set up a Solo(k) which by law does not require a custodian and allows the owner of the account to act as their own custodian. If you don't qualify for a Solo(k), then consider setting up an LLC in front of your SD IRA so you have direct control over you funds. You can research both options on our website at www. freedomgrowth. com. Thanks Tracy for sharing this. Tracy, good article. I think the issue to be determined on the pending SD IRA lawsuits has to do with negligence, not fraud. Where I think the custodians are most vulnerable is not on the investment vetting side. If you’ve ever asked a custodian for a recommendation or point of view of any kind, they are very careful to not give advice. And while the court will have to determine the custodian’s role in vetting the investment provider, I believe the term self-directed will ultimately hold up in court.

Where they’re going to run into trouble is negligence. And not intentional negligence, but the type of negligence that surfaces when you’re in a low margin business that is expanding very quickly. Staffing and training are a real problem right now in this industry and mistakes like those described in the WSJ article are probably rampant:

“She said she received regular account statements, first from Equity Trust and then from a second custodian, showing nearly $20,000 in the account—even after she learned that the investments had failed.”

This wasn’t because the custodian was in on the scam. They just never received any notice that the money was gone. Why would they? It’s not their job to manage the investment or the provider, only to “custodian” the investment on behalf of the client’s IRA.

The answer? I usually advise clients to stick to the bigger brands, although the 2 named in the article are 2 of the biggest and most established. Your best bet is to set up a Solo(k) which by law does not require a custodian and allows the owner of the account to act as their own custodian. If you don’t qualify for a Solo(k), then consider setting up an LLC in front of your SD IRA so you have direct control over you funds. You can research both options on our website at www. freedomgrowth. com.

Thanks Tracy for sharing this.

]]> Comment on Self-Directed IRA Custodians Sued by Investors by Tracy Z http://noteinvestor.com/buy-notes/self-directed-ira-lawsuit/comment-page-1/#comment-19416 Tracy Z Thu, 03 May 2012 17:51:09 +0000 http://noteinvestor.com/?p=3423#comment-19416 I love it when readers are inspired to comment! I also received an email comment I wanted to share (but will leave off the name out of respect since they did not choose to publicly post): <blockquote>Hi NoteInvestor - I read the original WSJ article when it appeared & couldn't help think it was written by some PR firm for a Wall Street Investment house...it & your article seem to suggest that SD IRAs are somehow more risky...when that is not true. These lawsuits are bogus...Proves its still legal to be a moron! </blockquote> I happen to agree with these thoughts on the WSJ article and that the lawsuits against the custodians are bogus. I tried to convey that in my commentary after the WSJ excerpt. All investments have an element of risk but I would much rather trust my judgment then that of a stock broker or some corporate insider. That is why I personally use a self directed IRA. For the record...<strong>I am pro Self-directed IRA!</strong> I'm adding this comment to be sure that I adequately expressed this viewpoint. Thanks again for your comments and emails! It is always great to hear from readers. These type of topics usually get people talking (as they should)! All the best, Tracy Z. Rewey I love it when readers are inspired to comment! I also received an email comment I wanted to share (but will leave off the name out of respect since they did not choose to publicly post):

Hi NoteInvestor – I read the original WSJ article when it appeared & couldn’t help think it was written by some PR firm for a Wall Street Investment house…it & your article seem to suggest that SD IRAs are somehow more risky…when that is not true. These lawsuits are bogus…Proves its still legal to be a moron!

I happen to agree with these thoughts on the WSJ article and that the lawsuits against the custodians are bogus. I tried to convey that in my commentary after the WSJ excerpt.

All investments have an element of risk but I would much rather trust my judgment then that of a stock broker or some corporate insider. That is why I personally use a self directed IRA.

For the record…I am pro Self-directed IRA! I’m adding this comment to be sure that I adequately expressed this viewpoint.

Thanks again for your comments and emails! It is always great to hear from readers. These type of topics usually get people talking (as they should)!

All the best,

Tracy Z. Rewey

]]> Comment on Self-Directed IRA Custodians Sued by Investors by Kent Anderson http://noteinvestor.com/buy-notes/self-directed-ira-lawsuit/comment-page-1/#comment-19413 Kent Anderson Thu, 03 May 2012 15:02:13 +0000 http://noteinvestor.com/?p=3423#comment-19413 The lesson here is never use private investors’ money to buy notes and mortgages. Also, when you read your custodial agreement your IRA has with the custodian, there is a very good chance your IRA will have to fund the legal defense fees of the law suit brought against them. Another reason to stay away from private investors because if you blow a deal with your own money you won’t be suing yourself… just real bummed out. So, use your head and keep life simple, buy discounted notes and mortgages with your own money and stay away from all the risks and liability associated with private investors. You do NOT need their money to buy notes! The lesson here is never use private investors’ money to buy notes and mortgages. Also, when you read your custodial agreement your IRA has with the custodian, there is a very good chance your IRA will have to fund the legal defense fees of the law suit brought against them. Another reason to stay away from private investors because if you blow a deal with your own money you won’t be suing yourself… just real bummed out. So, use your head and keep life simple, buy discounted notes and mortgages with your own money and stay away from all the risks and liability associated with private investors. You do NOT need their money to buy notes!

]]> Comment on Self-Directed IRA Custodians Sued by Investors by Tracy Z http://noteinvestor.com/buy-notes/self-directed-ira-lawsuit/comment-page-1/#comment-19409 Tracy Z Thu, 03 May 2012 12:11:15 +0000 http://noteinvestor.com/?p=3423#comment-19409 Sadly, I agree your predictions could come true. The self-directed retirement account is one of the few tools that investors and the self-employed can use to save for their retirement with tax advantages. We sure know we can't depend on Social Security. Sadly, I agree your predictions could come true. The self-directed retirement account is one of the few tools that investors and the self-employed can use to save for their retirement with tax advantages. We sure know we can’t depend on Social Security.

]]> Comment on Self-Directed IRA Custodians Sued by Investors by Carlton White http://noteinvestor.com/buy-notes/self-directed-ira-lawsuit/comment-page-1/#comment-19407 Carlton White Thu, 03 May 2012 10:56:37 +0000 http://noteinvestor.com/?p=3423#comment-19407 More regulations will be introduced in this area. Too many people want to invest without risk and will use the government to protect them if they suffer a loss. If regulations become too onerous the self directed IRA as an investment will vanish. Custodians will be targeted as liable parties in failed transactions and will not want continue administering these accounts. More regulations will be introduced in this area. Too many people want to invest without risk and will use the government to protect them if they suffer a loss. If regulations become too onerous the self directed IRA as an investment will vanish. Custodians will be targeted as liable parties in failed transactions and will not want continue administering these accounts.

]]> Comment on One of Our Favorite Note Buyer Purchases by Sam Hammond http://noteinvestor.com/real-deals/favorite-note-buyer-purchases/comment-page-1/#comment-19239 Sam Hammond Thu, 26 Apr 2012 11:04:59 +0000 http://noteinvestor.com/?p=3377#comment-19239 Greg, This was a great article! Thank you!! I am a note broker and also have three notes I personally own. All have been full buyouts. It is easy to find an attorney who will do an assignment of note and mortgage, but I am having trouble finding an attorney in Upstate South Carolina who knows how to handle the purchase of a partial. I have a client who wants to be protected from any potential liabilities. Would your attorney know of anyone here who could handle such a transaction? Please advise. Sam Hammond 864 276 1967 samhammond@charter.net Greg,

This was a great article! Thank you!! I am a note broker and also have three notes I personally own. All have been full buyouts. It is easy to find an attorney who will do an assignment of note and mortgage, but I am having trouble finding an attorney in Upstate South Carolina who knows how to handle the purchase of a partial. I have a client who wants to be protected from any potential liabilities.

Would your attorney know of anyone here who could handle such a transaction? Please advise.

Sam Hammond
864 276 1967
samhammond@charter.net

]]> Comment on Owner Financing – How to Finance Older Mobile Homes by Tracy Z http://noteinvestor.com/sellers-corner/owner-financing-how-to-finance-older-mobile-homes/comment-page-1/#comment-19158 Tracy Z Sun, 22 Apr 2012 18:50:53 +0000 http://noteinvestor.com/?p=498#comment-19158 Hello Carrie! We have bought quite a few seller financed notes on the kind of property you described. Mobile homes can be an affordable housing option in many areas. However, they come with some caveats. Your real estate agent is being honest in bringing them to your attention. Properties classified as mobile homes have a hard time holding their value and tend to depreciate rather than appreciate. They are also harder to get financing on, which is part of the reason we see so many being owner financed. There are sometimes ways to have a mobile home reclassified as real estate if they are permanently attached to the property and meet certain qualification - However, this differs state by state. I suggest speaking with your real estate agent, a local title company, and/or an attorney in you area for how it works in your state. Whether buying a mobile home makes sense for you is a personal decision but it is good that you are becoming knowledgeable and weighing the risks. Hello Carrie! We have bought quite a few seller financed notes on the kind of property you described. Mobile homes can be an affordable housing option in many areas. However, they come with some caveats. Your real estate agent is being honest in bringing them to your attention. Properties classified as mobile homes have a hard time holding their value and tend to depreciate rather than appreciate. They are also harder to get financing on, which is part of the reason we see so many being owner financed. There are sometimes ways to have a mobile home reclassified as real estate if they are permanently attached to the property and meet certain qualification – However, this differs state by state. I suggest speaking with your real estate agent, a local title company, and/or an attorney in you area for how it works in your state. Whether buying a mobile home makes sense for you is a personal decision but it is good that you are becoming knowledgeable and weighing the risks.

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