- Non-Performing 2nds Teleseminar TOMORROW
Published: Tue, 04/09/13
April 9, 2013
Hi ,
Gordon Moss' article on profiting from an investment virtually
NOBODY knows about -- non-performing 2nd notes -- is below.
Why would anyone in his right mind buy a non-performing 2nd??!!
Find out in Gordon's free teleseminar tomorrow, Wed. April 10.
It starts promptly at:
6 p.m. Pacific
7 p.m. Mountain
8 p.m. Central
9 p.m. Eastern
All times DST -- a few areas aren't on DST, you know who you are.
Call 712-451-6000 when it starts in your time zone. When prompted
enter the access code 903809 followed by the # button.
(Sorry, you cannot use Magic Jack.)
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceSeminars.com
www.PaperSourceUniversity.com
www.cashflows.org
P.S. Gordon will be teaching an extended class on non-performing
2nds at the Paper Source Note Symposium in Las Vegas April
26-27, so if you're there you'll have the unique opportunity to get
to know him and learn all about the amazing profit potential. I
say "unique" because Gordon rarely teaches! We're honored he is
teaching at the Symposium.
You'll also have the opportunity to network with our other teachers,
all experts in various cash flows, and over 150 note investors and
brokers from all over the US. You'll make contacts that could
benefit you for years to come.
The event is almost sold-out, so if you've been putting off
registering, please don't wait any longer. Go to
www.PaperSourceSeminars.com now, or call us at 1-800-542-2270.
**********************************************************
THE NON-PERFORMING 2nd LIEN
Part I
by Gordon Moss, www.realestateandnoteinvesting.com
"Neither a borrower nor a lender be"...(unless you buy the loan
very, very cheap)
Why would an investor in his right mind consider the purchase of a
non-performing 2nd (junior) lien?
Maybe they haven't dedicated the time, energy, and resources to
fully understand this unique niche, evaluated the risk/reward ratio
and come to the conclusion that it might be the LEAST risky
and most profitable strategy available in today's marketplace.
How can that possibly be?
Let me give you a bird's eye view of this niche, exactly why we
came to that conclusion years ago and why we have dedicated
ourselves to understanding the current non-performing 2nd lien
marketplace and the many strategies and tactics we have
learned and developed.
The current market (in California, at least) is paying 50, 60, or
70 cents-plus for a quality non-performing 1st lien, and that is
just too much money in my opinion; margins are too slim,
add foreclosure costs with a large potential for bankruptcy and
other related delays, and you can have your investment dollars tied
up for many more years than originally planned.
"Wait a minute here," you might say, "I can buy non-performing
first liens at 30, 20, or even less than 10 cents on the dollar
from my local hedge fund!" At this point I strongly urge
you to read my blog on "THE BULK REO GAME"
http://realestateandnoteinvesting.com/2011/10/the-bulk-reo-game/
Cheap non-performing first liens could lead you on a very short
path to disaster. These will be notes on the wrong properties, in
the wrong areas, in the wrong parts of the country. Some local pros
might be successful at this niche, but I don't know any of them.
Consider the possibilities when paying 15 to 20 cents on the dollar
for a non-performing 2nd lien on a better quality borrower and
stronger quality collateral: What if you could buy a $100,000
non-performing 2nd lien for $15,000 and re-perform it at
$700 a month for 30 years (tax-deferred or tax-free in your own
self-directed retirement account) and/or season and resell it
for $60,000?
You might have most of your investment back in a short time frame
and an excellent rate of return. Even a fraction of those numbers
might be a profit margin worth chasing.
Evaluating First Position Non-Performing Liens
The old cliché is that real estate valuation comes down to three
factors: "location, location, location." When evaluating a
non-performing first lien the three most important factors
might be "collateral, collateral, collateral"...The chances of
owning the property are very strong, and your risk needs to be
evaluated this way.
Evaluating a non-performing 2nd lien is a bit unique - it might
be the "borrower, borrower, borrower." The most important factors
in evaluating a junior lien come down to your ability to analyze a
borrower's "emotional equity" and his ability and willingness to
work with you to keep his home and create a "win/win" solution that
benefits all parties.
TO BE CONTINUED
Gordon Moss is president of Quixote Ventures, Inc., San Diego, CA.
He is probably THE most experienced buyer of non-performing 2nd
liens. His website is www.realestateandnoteinvesting.com
Learn all about this virtually unknown profit center from Gordon
personally -- at the Paper Source Note Symposium April 26-27
in Las Vegas. He'll be joined by experts in other cash flows
at THE cash flow note event of the year. Last call!
www.PaperSourceSeminars.com or 1-800-542-2270.
And be sure to participate in Gordon's free teleseminar tomorrow,
Wed. April 10. See the beginning of this mailing for the
instructions.