Week 7: The 4 Sources for Bank NotesThe 8 – Week Roadmap to Launching into Notes

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AgendaAgenda

Following the Roadmap Step by Step:

• Note Buyer Info Form – STRATEGIZE

Following the Roadmap Step-by-Step:

• Note Buyer Info Form – STRATEGIZE

• The 4 Sources• Unsolicited• Other Investors

B k• Brokers• Banks

• Finding Notes – the Checklist

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First – Licensing – a Revisit

• 2 Primary Sources for Advice / Legal2 Primary Sources for Advice / Legal

• “Smallest Client” for one of them?• $500M• $500M

• Large Specialty Servicer – 30+ clients – any of them licensed?

• No

• A number of states have regulatory guidelines for “acquiring” or “buying” security instruments

• Future PAC session – “what’s the issue w/ licensing?” – w/one of the 2 key sources

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Note Buyer Info FormNote Buyer Info Form

• Take a step back and think about your capabilities• Take a step back and think about your capabilities

Secured Un SecuredSecured Un-Secured

$$$

1sts

Low TouchLow-Touch

2nds $$ $$

High-Touch Baseball Bat

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High Touch Baseball Bat

Note Buyer Info FormNote Buyer Info Form

• Take a step back and think about your capabilities

Performing Non PerformingSecured

• Take a step back and think about your capabilities

Performing Non-Performing

$$$$ $$$1sts

$$$$

Yield

$$$Refi?Yield?

$

Yield?

$$2nds

MultiplesReturns

ReturnsRefi?

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ReturnsRefi?

4 Sources: Unsolicited Offers4 Sources: Unsolicited Offers

• Pro’s:Take a minute write down 3• Take a minute – write down 3

• Con’s:• Take a minute – write down 3

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Other InvestorsOther Investors

• Pro’s:More loans available in smaller bundles (e g• More loans available in smaller bundles (e.g. trickle-down effect)

• More forgiving (sometimes less forgiving Newport• More forgiving (sometimes less forgiving, Newport Beach example)

• Co-bid / simultaneous bid• Con’s:

• See Newport Beach exampleSee Newport Beach example• Less time to “get out of deals” always focused on

“getting into” deals

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• Price-gouging

BrokersBrokers

• A Helpful Guide Bad GoodA Helpful Guide

Type Knowledge Exclusivity TimingType Knowledge Exclusivity Timing

Good YES or NO

The Bad NOThe Bad NO

The Ugly Usually YES

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Brokers the “Ugly”Brokers – the Ugly

• A typical week with the “Ugly” Brokers

DAY 1 - Tuesday

A typical week with the Ugly Brokers

“R t ” S llERIC

“Represents” Seller

FRANK“Represents” Sellerp

Seller?

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Seller?

Brokers the “Ugly”Brokers – the Ugly

• A typical week with the “Ugly” Brokers

DAY 3 - Thursday

A typical week with the Ugly Brokers

“Represents” SellerERIC

FRANKFRANK“Represents” Seller

The “Attorney”CRAIG For “proofing up” and

as “paymaster”

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y p ySeller?

Brokers the “Ugly”Brokers – the Ugly

• A typical week with the “Ugly” BrokersA typical week with the Ugly Brokers

DAY 4 – Friday

“Represents” SellerERIC

“Seller’s Mandate”PETER

FRANK JOHN SFRANK“Represents” Seller “Seller’s Rep”

JOHN S

The “Attorney”CRAIG

18 Hours of “Work” with No “Seller”

MUHAMMAD

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ySeller In

Sight

BanksBanks

• The 4 keys to success …y• Go direct• Be persistent (weekly)• Be persistent (weekly)• It doesn’t matter how you get through the door …

• Just know where you’re going once you get in!

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Finding Notes the ChecklistFinding Notes – the Checklist

• Use the one in the Roadmap!p• The John example • “I made it through!”• I made it through!• So what do they sell?• “Gee, I don’t know …”

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What We CoveredWhat We Covered

• Note Buyer Info Formy

• Finding Notes the Checklist• 4 Exits• Finding Notes – the Checklist

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Next Tips from a BrokerNext – Tips from a Broker

February 11: 5pm PT 8pm ETFebruary 11: 5pm PT, 8pm ET

“Brokering: 4 Tips to Get it Right” – from a “Good” Broker

February 18:Week 8 of the Roadmap Buying Putting itFebruary 18:Week 8 of the Roadmap – Buying. Putting it all together!

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