While you have been enjoying (hopefully) my emails for the past several weeks and months, I have a whole team behind me that assists me in executing a note purchase, and beyond. So today, because of the two top teams that have battled their way to the Super Bowl, I thought to list out the positions on the team behind me.
Note investing is a team game.
By the time most of you read this, the Super Bowl will be over and we have a new champion. Even though one person is selected as the MPV, in reality, it was the team that worked together, meshed their individual strengths and talents, to form a unit that created their success. Not only for this one game, but throughout the entire season. Each member of the team applied their talents to win. One may pass, one may run, but there are many, less heralded team members that blocked and tackle.
Loan Servicer – Every mortgage loan I purchase is set up with a loan servicer. While some note investors self-service, I don’t have the software, or time to self-service loans, especially with the scrutiny of RESPA and the CFPB. For $30 a month, I can set up all my loans with a licensed, compliant mortgage loan servicer and do not have those concerns that I personally failed to send out a specific letter to the borrower, properly worded, within the allowable time frame.
Specialty Servicer – A specialty servicer is different than a loan servicer in that they only perform specific tasks. A Specialty Servicer is used for specific borrower outreach right after purchase. Their purpose is to make “right party contact”, assess the borrowers interest and ability to remain in the house. They are the folks that assist me in working with the borrower to find a solution that works. While the normal loan servicer might provide that service, they are generally less skilled and more expensive.
Collateral Company – I need a collateral company for three primary purposes. First, I need documents sent to counties for recording into the public record. These could be Assignments, deeds, or deed-in-lieu documents. A collateral company can send those documents to the county on my behalf because they have the knowledge of what the county requires to properly record a document. Second, they can be hired to review a collateral file for accuracy and completeness, making sure the collateral file contains the correct documents to validate your ownership of the note. They are skilled at finding any holes or anomalies in a loan file. Thirdly, if there are holes, they can put their expertise to work to close those up. If there is a missing Assignment or Note Endorsement, they know how to locate what is missing and close that gap.
Attorneys ~ Yes, there are needs for attorneys in this business. In the event the process leads to foreclosure, you must have a local attorney to assist in that event. While I obviously don’t know attorneys in every county in the country, I do have resources available to refer me to experienced real estate attorneys.
Due Diligence – For those that have really read these emailers, you know that I receive several note tapes each week. With having 34 years in the mortgage industry and a pretty solid understanding of spreadsheets, I can break down a tape pretty quickly into a manageable list of investment grade assets. However, I foresee that outsourcing this activity will be necessary soon. Fortunately, I have that ready to go when the need arises.
Assistants – I am told that once you reach 20 assets in your portfolio, the business escalates to a higher level. In keeping at my current pace, I should reach that total in the 2nd quarter of 2017. These assistants will be able to keep my marketing (these emailers) going, make phone calls, dealing with correspondence, and many other things that are better done by someone else, so I can focus on my core tasks.
Insurance – Often times, borrowers let their fire insurance policy lapse. Even though their loan requires adequate hazard insurance, properties can go uninsured. Of course, when the value of the property is secured by my investment, I need to be sure that should a loss incur, the property is insured at all times, either by the borrower’s homeowner’s policy, or a policy I place to protect my (and my investor’s) interest.
Realtors – In so many ways, Realtors are a imperative in the real estate industry. They are vital in my note investing. Realtors are valuable in a couple of ways. First, when I am completing my due diligence on an asset, I always need “boots on the ground” to check the condition of the house and provide a value estimate. In most situations, a local Realtor offers the best information on a property in their community. Second, should I need to foreclose, these same Realtors that helped to begin with are offered the opportunity to list the house for sale. Their eyes, ears, experience and local knowledge are vital to ensure a profitable investment.
As you can see, having highly skilled players, each performing their respective roles is what is required to have a championship level team. Both of the Super Bowl teams got to this game because game after game, their player performed. I’ve got that kind of team as well, but I need to add one more player: YOU. You can be part of my team by becoming a Joint Venture Investor and assisting me by funding these transactions. As I’ve said many times, there is no shortage of product and the returns are extraordinary. We are 1/10th of the way through the year. Are you still on track with your resolutions? Now is the time to get back on track.
Thanks for reading. I hope your team won. Mine is……….