Person. Property. Paperwork. Then the price.

Person: understand the payment behavior

• Compare reported payment history with servicing or other supporting records.
• Look at late payments and whether the borrower recovered after interruptions.
• Understand the current payment obligation and any proposed change.
• Consider borrower circumstances without assuming a workout will succeed.

Property: understand the collateral

• Check the valuation basis, date, and limits.
• Review condition, taxes, insurance, and relevant competing interests.
• Distinguish unpaid balance, property value, and purchase price.
• Include time and expenses if a recovery becomes necessary.

Paperwork: establish what is being transferred

• Review the note and recorded security documents.
• Check assignments, endorsements, modifications, and title evidence.
• Reconcile maturity, balance, and payment terms.
• Use qualified professionals for legal, servicing, and transaction questions.

Economics: model the cash that actually matters

A target return is a buying objective, not proof of a result. Separate gross payments from principal recovery, servicing, advances, legal costs, and other expenses. Stress-test delayed or missed payments before deciding what a note is worth to you.

My buy box

• First-lien notes only. Performing and nonperforming, with a preference for seasoned payment history.
• Ohio, Indiana, and Michigan. Markets I know.
• 65% investment-to-value or lower. What I pay compared to what the house is worth. That gap is the cushion that protects lender money.