Small Commercial Notes

Commercial notes are meant for immediate needs, which means there has to be an immediate action done before values change. Scott talks about the opportunities in smaller commercial notes and what to look for when performing due diligence on them – from looking up photos online to investigating the area and its neighboring properties. Maximize opportunities with small commercial notes and discover the story behind them and the promise they hold in this episode.

"We’re going to dive a little bit about some stuff from some small commercial notes and dive into that aspect of things because we’ve been talking about that in a long time. We’re starting to get quite a bit stuff in across our books, so we thought we spent some time talking about that. It’s an interesting time with what banks are doing as far as buying and selling assets. I got an email from somebody who is asking me about our pricing. How are we getting pricing to be where they’re at? This gentleman says, “I’ve read your pricing options blog and you said that you only pay $0.30 to $0.40 on the dollar for nonperforming, so correct me if I’m wrong.” That’s right depending on what blog was done. He goes, “Some of the tapes that we’ve seen for a nonperforming contract for deed have strike prices 60% to 88% of values greater than UPB and equity deals or they don’t accept their bids at 50% of UPB. How do you get that much of a discount buying big trenches at one time, your reputation, what place?”

Listen to the full podcast episode here: https://weclosenotes.com/ep-443-small-commercial-notes/