Expert: Dick Dennis - 6/4/2008

Question
how do you find private mtg. notes?

Answer
In this present kind of real estate market, Felix, it will be difficult to find private mortgage (or trust deed) notes. But if you work at it, you will be able to accomplish that.

First, prepare a professionally written letter addressed to attorneys who specialize in estates or real estate. If you have had experience buying and selling mortgages, you should be able to make the letter sound professional because attorneys can detect when you do not have the experience.

You can also go to your local county recorder and spend much time looking for sales of properties that have had sellers carrying back the paper. You then send solicitations to them, too.

Of course, you can submit an ad in your local newspaper and see how that works for you. Or you might even try the Internet. These three ways require hard work, much knowledge of the properties in your area in which you specialize. There are books written on the subject. See what you can find on the Internet on that subject.

As a mortgage investor, you need to know the real estate market up, down and sideways because you virtually buy the property when you buy the paper connected to it.

Be aware that mortgage companies and brokers have broken into this business because they have investors or sources of funds to buy those notes. That does not mean you cannot do well anyway. I do wish you well.

Dick Dennis