February 23, 2022

Buying Privately-Owned Paper, with Bob Leonetti

Episode 119:

Bob Leonetti has helped more regular people just like you to make money with real estate paper and low money down note and paper strategies than almost anyone else in the United States. With more than 18 years of teaching/coaching experience, thousands of satisfied students, 8 books, and countless educational seminars, video, audio, and other real estate finance products to his credit, no one knows the ins and outs of the note and paper business like Bob does.

He’s a former mortgage banker and currently president of Austin-based SMI Funding, a spinoff from the company he founded in 1992 and took public in 2000: Success Financial Services Group. Bob has presented on almost every major real estate stage in the industry, including Ron LeGrand, Chris McLaughlin & Nathan Jurewicz, Scott Meyers, Richard Roop, and Ben Pargman, to name just a few.

Bob is involved in numerous private money-raising deals and through notes, regularly assists private lenders in obtaining returns far above what they could earn in traditional bank-type investments. Regularly buying paper all over the country, Bob’s creation of Paper Power is the culmination of 18 years in the paper buying industry.

Bob’s community involvement includes ongoing support of the Toys for Tots program of the United States Marine Corps, which provides Christmas gifts to children. He currently pursues his passion for travel by “getting away” whenever he can, and his music passion by performing with various choral groups, the most recent of which is the Austin Symphonic Choir.

He currently refers to himself as a “recovering” mortgage banker and spends his time pursuing his passions of real estate investing, writing, teaching, and of course, cooking and winemaking.

What you’ll learn about in this episode:

  • How Bob became an expert at selling privately owned paper
  • What are the underlying reasons that would cause someone to want to sell payments
  • Why homeowners in Texas would be interested in selling notes
  • How loan-to-value and investment-to-value impact buying and selling notes
  • How to determine how much you should pay for a note
  • Why do you want to focus on getting the payments as high as possible
  • What are some of the traps to look for that should make you avoid buying

Resources:

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