2 Wrong Ways to Find Banks Selling Notes

1.     Calling on the Big Banks – One of the questions I get from new note buyers is – “Can I
buy notes direct from (Bank of America, Wells Fargo, Chase, Citibank, US Bank, PNC)
[other BIG bank]?” The answer is “Probably not”. The problem is that your purchase
doesn’t move the needle. Big banks sell big pools to big players for the most part.
There’s no low level special assets person who is going to sell you borrower Dick
Johnson’s mortgage.

Inevitably folks who pursue the big boys get frustrated and go over to the BiggerPockets
forums and say “it doesn’t work, banks don’t sell notes” and then a bunch of other
people who also have absolutely no idea what they’re talking about or how the business
works chime in and agree. And that’s just fine for us, less competition 😉

2.    The Bottom Up Approach to Buying Notes from Banks – One approach I see a lot is
the investor will find a struggling homeowner and will try to parlé that find into a note
purchase through the debtor’s lender. This isn’t a total fail if you happen to be working
with a borrower who has a portfolio loan with a local, regional or community bank, but
this won’t work with the big banks.

I’ve heard of people (who have heard of people) who say they know a guy…. And that
they’ve been able to buy notes this way but I’ve not heard one single first-hand account
of an independent buyer buying a single residential note from a Top 10 bank – not one. If
you have personally had success with this approach we’d love to hear about it in the

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