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Welcome to Target Market Insights. A podcast to help real estate investors navigate neighborhoods through the lens of local experts. In each episode, we speak to local specialists to learn about their market, useful tips, and the latest trends and developments. This show is designed to help you with the insights you need to win your target market.

Aug 27, 2019

Mortgage note investing is one of the more intriguing passive real estate strategies for investors.  Daphne Wilson is a pro at finding and buying second mortgage loans. She’s devised a strategy that allows her to buy for pennies on the dollar and create a win-win situation for borrowers. She is the founder of Bell Financial and on this episode, she shares her strategies to find and buy notes and get a delinquent borrower current on their payments.


Partner: Download a Free Sample Apartment Deal Package


Key Market Insights

  • Mortgage note investing is real estate without property management
  • Homeowner pays the investor instead of the bank
  • Notes are available through note exchanges, note brokers, and organizations
  • Where to find notes to purchase: LoanMLS and ExchangeLoans
  • First position loans are senior liens
  • Second position loans are junior liens, usually less than the senior loan
  • Buys second mortgages, these are typically for home renovation loans
  • Spends $2,000 to $8,000 per asset
  • Unpaid principal of $25-$60k for non-performing notes
  • Banks would rather have bad loans off their books than try to collect the full amount owed
  • Strategy: Buys delinquent 2nd mortgage behind a current 1st mortgage
  • To get borrowers current on their mortgage, create a solution about the borrower
  • Use the arrears to create leverage
  • Spend 4-5 hours per month on note investing business
  • When purchasing a non-performing asset, you build a relationship
  • Arrears are the amounts that have accumulated because of missed payments
  • The 2008 market correction fueled the second mortgage investing space


We’re going to jump right into the bullseye round, right after this quick word from our partner.


Partner: Check out the Northstar Real Estate Conference on Sept. 21 and 22


Bull’s Eye Tips:

Winning Your Market: Engaging with other investors

Tracking Market Changes: Reaching out and interacting

Daily Habit: Meditation




Digital Resources:

Note Dashboard

Tweet This

“In 4 years I have never had to foreclose on a buyer”


Places to Grab a Bite:

West Palm Beach - Darbster

Connect with Daphne:

Instagram: daphnerwilson


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