Here are my most recent posts
by Gordon Moss
What is THE most unique and abundant opportunity in our real estate
and note investment market today? I believe it is the
non-performing note (or non-performing real estate note).
Banks today are saddled with a tremendous glut of defaulted and
under-performing real estate paper. Contrary to the belief of
some, banks are not in the “bad debt” business. They also don’t
have a strong desire to foreclose or favor holding a large
portfolio of REO (Real Estate Owned) assets. They are in the
lending business, not the non-performing real estate note business.
Gordon Moss is one of many experts who will teach at the Paper Source
seminar “Profits In Non-Performing Notes” Nov. 20-22 in Las Vegas.
The Super Early Bird Discount of just $297.00 expires THIS SUNDAY,
Aug. 31. For info and to register, visit
or call 800-542-2270.
Do you think it is possible that a banker with a non-performing
note might want to sell you the note at a substantial discount to
achieve his goals — which might be to get this asset off the books,
comply with regulators’ requirements, and regain the ability to
make new loans? The answer is YES.
What does it take to become a non-performing note buyer?
Bankers do not have the time or desire to educate you. They must
believe that you have the knowledge, experience and resources to
effectively solve their problems.
When dealing with these bank assets you will not be talking with
the president of the bank, but usually a mid to lower level asset
manager whose main focus is most likely to be his or her own job
security in our current, turbulent banking environment. If you can
develop trusted relationships with these bank managers that have
the types of assets you desire with the need to liquidate — and you
can prove that you can solve their problems through buying the
unwanted assets — than the next several years can be a great
opportunity to make large profits buying defaulted notes.
* Start by learning the rules of the game of buying real estate
notes. You must master the language and process of buying
distressed notes to gain the credibility you will need to buy real
estate notes successfully.
* You need to decide what type of collateral/product/location you
see as the best fit for your investment strategy.
For example, we have focused on the Western United States, trust
deed states, and only good quality single family houses as our
collateral. Our group has a strong background in buying real
estate notes on commercial properties and will build that part of
our acquisition business moving forward — but you must develop a
plan to buy real estate notes that works best for YOUR note buying
* Then it is time to hunt for the note sources.
Our current environment is littered with all types and flavors of
note brokers. Very few of these note brokers will prove to be
profitable relationships for you. Most of them are “chasing their
tail” trying to sell you undesirable note paper that they have no
control over and at high prices.
* Learn the current market. That is KEY to making profitable
note buying decisions.
Look at as many notes as you can get your hands on. You will then
get a feel for pricing and quality of the product that you are
focusing on. After looking at a few thousand notes from many
different note sellers you will have a sense for a bargain when you
* Once the note is acquired you must follow the correct procedures
for the assignments, RESPA and TILA regulations, recordings,
boarding the notes with a servicer, securing the note in a vault,
and then finally develop an asset management re-performance or
liquidation exit strategy that fits the note paper and the
* Exit strategies in buying real estate notes are the real art of
this business, and the way they are handled will determine your
level of success. A short list of these include:
– Resale of the note (getting cash for notes you have purchased)
– Loan Modification/Forbearance Plan
– Short sale of the property
– Cash for keys
– Deed in lieu of foreclosure
To be continued…
Gordon Moss is the #1 expert in investing in SECOND position
He began his career in real estate in 1985 as a commercial
real estate broker in Orange County California. He has been an avid
student of the masters of all facets of the real estate and
investing business for over 25 years. He now owns and manages a
portfolio of properties and notes full time and today is very
passionate and active in what he believes is the best real estate
and note investment opportunity we will see in our lifetimes.
These 25 years of experience and focus give him an exceptional
Gordon’s new book, “Performance Anxiety:
Creating A Fortune Investing In Non-Performing Real Estate Loans
is available at http://tinyurl.com/ldz7m8h
He and other experts in non-performing notes will teach a one-of-a-kind
seminar Nov. 20-22 in Las Vegas. Visit
http://papersourceseminars.com/non-performing-notes-seminar-2014 or call
1-800-542-2270. Super early-bird discount registration expires Sunday,
To get the free replay of last night’s teleseminar on non-performing 2nd lien notes with Sandor Lau of www.StewardshipCapital.com go to:
A few weeks ago I told you about our new event “Profits In Non-Performing Notes: Turning NPNs Into Cash Cows” Nov. 20-22 in Las Vegas — 2 1/2 days with the #1 experts in both 1st and 2nd lien NPNs, networking with your colleagues, private consultations with the teachers, included, open bar receptions, continental breakfasts, elegant luncheon, all included.
I know Nov. 20 seems like a long way off.
But what ISN’T a long way off is the deadline to save $100.00 on your registration.
The Super Early-Bird Discount expires midnight next Sun. Aug 31.
To take advantage of the discount, visit http://papersourceseminars.com/non-performing-notes-seminar-2014/ or call us at 800-542-2270.
Will someone with experience in tax liens (tax lien certificates) investing please
rate the risk, difficulty, and time involved in this endeavor?
“I recommend investing in tax liens if you have at least $10K – $15K to get started.
You could start with less but I don’t think it would be worth the time or effort.
“Depending upon what state you are investing in, when you buy tax liens you are basically being
paid a premium interest rate to pay someone else’s delinquent property taxes.
“This is not a very difficult endeavor, but you need to know a little
bit about the procedures pertinent to the particular county that you are investing in.
Usually you can get that info easily enough by accessing the county treasurer’s
“Plan to devote about two days’ time for each tax liens auction you plan
“The way to make money from tax liens are twofold, in a direct way.
(There are many other ways in secondary ways, e.g. selling services in this potentially
“One is that you should be able to get a much higher interest rate return on
your investment if you did your due diligence on the property first before buying the tax lien on
“The other is that if they do not redeem by the end of the redemption period, typically you get to
own the house the lien is on. For example, I have bought houses worth $60,000 for about $2,000
in tax liens. I just listed a house for $40,000 in Savannah, Georgia that I paid $11,000 in a
tax sale there last June. That should easily give me a 200%+ profit for my investment. That is how
you can make good money if you do your homework.
“Indeed, it’s unlikely you will get a mansion or a house in a very nice
or posh neighborhood since most of those owners either can afford to pay taxes,
or know how to get out of situations like that long before it gets to that point, though it
does still happen. You just never know!
“As for Federal tax liens, they do NOT always negate your tax liens.
There are very interesting laws about that in different situations. I heard from one
real estate lawyer who specializes in tax sales that it has to do with the fact that when the
country was set up, the counties were the ones vested with the local properties, not the federal
government, or something to that degree, so the tax liens, which are on the property (land), are
superior to IRS liens, which are on the owners of the properties, and not the properties themselves.
However, they do have the right just like the owners, to redeem you by paying the penalties or
interest to cancel your lien. But then you would still earn the high interest rates or penalties in
“Actually, that happened with one of my properties in Georgia, and the
IRS was asked if they wanted to redeem, or even collect the overbid, and the tax
collector said that after notification by them, the IRS has 120 days to do either, and that
typically they do not. And in fact, they did not in my case (the only time this had happened to me)
and I went on to own the property. The IRS liens went on with the original homeowners because, as
I understand, they are on the people and not on the property.”
MORE INFORMATION: http://store.papersourceonline.com/your-ira-can-buy-notes-more/
Which ones do you need to work on?
Able to manage workload effectively
Aware of personal work style preferences
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Not just looking for an escape from the office
Committed and responsible
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A “doer” — not a procrastinator
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Comfortable eating lunch alone
Able to leave the work behind when it is time to end the day
Able to negotiate work time and prevent interruptions from family and friends
Realistic about what can and can't be done
Able to adapt readily to new situations
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Proven producer of quality work
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Able to work without continual input and support from others.