Go learn about mortgage investing. Just because Wall St. did it wrong, it doesn’t mean it’s a bad investment. It took me about a few months of studying to understand what’s going on before I took the plunge. This is not real-estate investing. I don’t even have to knock on wood because I know how secure it CAN be done. I haven’t gone a year without ending up with more money than I had a the year before.

Thanks I was truly shocked when Dave came home and started reading me some of the things the guy had said. Obviously you want to know he's experienced and has a lot to teach you, but he could convey that in a very different way!

I want to note that these types of courses do work for some people! We learned a lot and did buy several properties after taking a similar program. The fact that we ended up worse off because of those properties, instead of better off was our own fault. Not the courses.

Dave wrote an article on real estate investing courses, in general, a little while ago. In case you haven't seen it, here's the link:

Thanks for stopping in and leaving a comment!!

When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.

Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.

You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.

Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.

I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!

E-mail me if you have any questions.

Regards