Finding the Common Denominator

was pretty good at math in grade school. About the same when I got to high school. But college was a totally different matter. Seems that algebra in high school was in a different language at college. Math 95 was not my strong suit. I remember on the first day, the "professor" wrote one simple equation on the chalkboard. We had about 10 minutes to figure it out. After 10 minutes, he said anyone that hadn't figured this one out probably shouldn't be in class. Since I was a PhysEd major and hadn't figured it out, I went down to the business office and withdrew from that class. What's funny now, is that being a PE teacher didn't work out. My career in the mortgage industry is all about math.

Back in high school, I always liked fractions. Adding or subtracting fractions involved solving for the least common denominator. As a remedial moment, the denominator is the bottom number of a fraction. When the two denominators are the same, they are called common denominators. Here is a link to a Mathisfun.com page about solving for the least common denominator:

http://https://us4.admin.mailchimp.com/reports/show?id=9337368

was thinking the other day how going through a note tape is kinda like solving for the least common denominator.Stay with me as I attempt to explain. A note tape consists of a large Excel spreadsheet with a tremendous amount of information. Each line of the spreadsheet holds countless information on one individual note being offered for sale. These tapes could show a few notes or a thousand notes. I have to drill down to a manageable handful that meets my criteria. One of the first steps I take is a process of eliminating the notes that I can easily determine don't fit my model. For instance, the first step I take is eliminating notes where the security property is in a state I don't buy notes in. Then it waterfalls from there, based on the criteria I have in my model. I strive to eliminate those notes listed that I don't want. So to me, this process of elimination follows a similar pattern as determining the least common denominator, as I drill down to the notes match business model criteria. When it comes down to the end, you have a selection of notes you are interested in, such as having the denominator the same. Does that make sense?

Anyway, thanks for reading. If you too like math, or pizza, or just want to hear more about investing in notes, let me know. I enjoy chatting with folks looking for ways to increase their returns.

Cody L Cox
Portfolio Manager
Funding Factors, LLC
Cody@FundingFactors.com
Office: 503-985-6293
Toll-Free: 866-285-2729
Secure Fax: 503-685-6339