Anyone here buy them? How do these look?

https://paperstac.com/for-sale/2023071818365457282852

https://paperstac.com/for-sale/2023060921064866340487

I've never looked into these sorts of things,

but the first one has a loan-to-value ratio of 92%. The second one has a L/V of 120%.

Maybe that's typical for this sort of thing, but that would scare me to death.

The one in Groesbeck doesn't quite tie between starting balance, rate and payment. Was there a time in the past it was non-performing and maybe some interest got capitalized, or principal is maybe slightly behind schedule?

If you could buy it at $33k, it implies a ~15% interest rate with almost 25 years left to go.

Assuming there weren't major payment problems in the past, and you wouldn't mind owning the property if you had to foreclose, that one looks attractive to me personally.

I have a friend in this space and the occasional one that a client has the oppty to get. My guess is you could negotiate down a bit from $33k based on my limited experience around these.

The small scale is the biggest issue here I'm seeing (unless property is complete piece of crap, meth lab, hazardous, etc...). For getting a start and putting $30k+ to work, looks good if ok with illiquidity.

I'm missing something on the Longview one. Just originated, yet selling at a 13%+ discount? Sounds like a problem mortgage that got wrapped into a new clean looking one.

LTV is way more attractive as the earlier poster suggested, and implied interest rate @ list price is ~13%. On surface looks safer than the Groesbeck one, but my risk spidey-sense are tingling that something is amiss.

Very curious what others with more experience think of this one.

This looked interesting so I dug around a bit.

I am not 100% sure but I think this is the property in Groesbeck on lake limestone.
(it could be the next property over but the numbers match more closely)

https://esearch.limestonecad.com/Property/View/R46213

The below link may not work but it's the satellite view.
Looks like there may be a dump site on the property or the one next to it from the satellite view.

https://www.google.com/maps/place/31%C2%B024'02.3%22N+96%C2%B019'37.9%22W/@31.4005964,-96.3276451,237m/data=!3m1!1e3!4m4!3m3!8m2!3d31.4006389!4d-96.3271944?entry=ttu

The Longview property listing says it's in Gregg County but the photo is actually a property in Upshur county

https://esearch.upshur-cad.org/Property/View/61215

https://www.google.com/maps/place/32%C2%B035'09.5%22N+94%C2%B051'30.1%22W/@32.5859677,-94.8585363,19.75z/data=!4m4!3m3!8m2!3d32.5859668!4d-94.8583684?entry=ttu

EDIT
Looked at CAD again, possibly 2 trailer houses attached to each other to make this dwelling along with additional structures added.

TChaney said:

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This looked interesting so I dug around a bit.

I am not 100% sure but I think this is the property in Groesbeck on lake limestone.
(it could be the next property over but the numbers match more closely)

https://esearch.limestonecad.com/Property/View/R46213

The below link may not work but it's the satellite view.
Looks like there may be a dump site on the property or the one next to it from the satellite view.

https://www.google.com/maps/place/31%C2%B024'02.3%22N+96%C2%B019'37.9%22W/@31.4005964,-96.3276451,237m/data=!3m1!1e3!4m4!3m3!8m2!3d31.4006389!4d-96.3271944?entry=ttu

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That point sold at a tax auction in 17 or 18. It's now built out.

The borrower is a guy out of Georgetown and his brother paid cash for the lot next to it.

The mountain note is a Hispanic family. Property just sold on MLS. It's also 2.5 acres I believe.

Dallas: What is a 'pookie note'?

Stan Crowch said:

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OP are you associated with GBT Investments? Did you originate these notes?

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I am. I thought the post was obvious enough.

I know how the real estate investing community underwrites notes. I was wondering how Wall Street underwrites them.

I don't understand why notes are selling easier than real estate right now.

Also, a few post down I explain both notes in detail. Not trying to hide anything.

I've been working with my father in law on his existing traditional real estate investment company for about 2 years now, and we're looking to get into note investing as part of the family business. I have a couple of questions for anyone that has some experience in the space.

• Should I set up an LLC? I know many people buy them through their IRA or just in a personal account, but considering I will be using family business money to buy them this seems cleanest right? Is there any disadvantage to doing this?
• I'm on the distribution from SN Trading, and check Paperstac often. Are there other sources that you've had success with buying from?
• My initial plan is to buy a couple of performing first positions to get experience with the due diligence, the closing process and the loan servicer. At some point will look at buying larger tapes to include non performing, but not yet.

He's built a nice family business via the traditional real estate route of BRRRR in Pennsylvania, but thats not something that fits my skillset. When I started learning more about buying and holding or rehabing notes, it clicked. I'm excited to get started.

Why be a fixed-rate lender in a rising rate environment?