Ep. 116: Finding and Buying Second Mortgage Loans with Daphne Wilson

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.


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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

Website: Mortgagenoteinvesting.info

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