TODAY - Defaulted Notes Teleseminar
Published: Wed, 04/10/13
April 10, 2013
**********************************************************
In this issue: Part II of "THE NON-PERFORMING 2nd LIEN"
by Gordon Moss
Free teleseminar on non-performing 2nds is TONIGHT!
**********************************************************
Hi ,
Below is part II of "THE NON-PERFORMING 2nd LIEN" by Gordon
Moss.
Don't miss tonight's teleseminar on profiting from an investment
virtually NOBODY knows about -- non-performing (defaulted) 2nd
lien notes with the #1 expert in the world, Gordon Moss.
Gordon will be taking your questions live: e-mail to
wjm@PaperSourceOnline.com
That's tonight, Wed. April 10.
Tonight's teleseminar will start at:
6:00 p.m. Pacific
7:00 p.m. Mountain
8:00 p.m. Central
9:00 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.)
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
prove to be invaluable in your success, and you'll come away more
energized than ever.
I truly believe this will be THE cash flow note event of the year.
AND personal consultations with the teachers will be available
for you at no charge!
The event is almost sold-out (I kid you not), 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.
Spend the last weekend in April in Las Vegas learning about the
note business -- including all sorts of cash flows you can profit
from that virtually nobody knows about, and create MULTIPLE
STREAMS OF INCOME -- and networking with some of the most
successful cash flow note brokers and investors.
This is for both note broker & investor beginners and
experts.
See www.PaperSourceSeminars.com for info and to register.
See you in Vegas!
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceUniversity.com
P.S. Last week's teleseminar on "Building Your Note Business
Online" with Simon White is posted at
www.PaperSourceSeminars.com Scroll down to Simon's bio.
**************************************************************
THE NON-PERFORMING 2nd LIEN
Part II
by Gordon Moss
Are you looking for the best ways to find assets that you can
purchase at a deep enough discount to turn a consistent and worthy
profit?
At a recent investor club meeting I asked folks to stand and remain
standing "if your current REO (Real Estate Owned), short sale,
trustee sale, discounted buying of seller held notes, or
non-performing note business is providing you with a steady
stream of profitable returns that are worth the risk, time, effort,
and pain."
NO ONE WAS LEFT STANDING...
Why not buy "broken but fixable" quality assets at 20 cents on the
dollar? With a potential 80 percent upside - is this not the best
option available to us??
I think the best opportunity for profit with the least amount of
risk in today's marketplace is THE NON-PERFORMING JUNIOR LIEN.
There is $600 billion in second liens in our country today secured
by residential properties with a little over 1 percent ($6 billion)
in default behind a current (performing) first lien. This is
our target market. The current glut of this product will last for
several more years.
Banks are selling these mortgage-backed assets to strengthen their
balance sheets. Non-performing seconds disproportionately add to
their required loan loss reserves.
The Wake Up and Workout Processes
You must become better at solving the problems that the bank chose
not to pursue if you plan to be successful here. What value and
skills do you bring to the table? Can you diligently and
professionally track borrowers down, make contact, and move
them down the road to a successful win/win negotiation?
Skip Tracing and Door Knocking Services
Finding people that "don't want to be found" is an art that needs
to be mastered, and there are many tools to assist you. The
Internet, online data sources and social media make this
information accessible. A "skip trace" service can usually find
multiple contact numbers and addresses of missing borrowers.
National door knocking services can be hired for $60 for a three
visit plan where the service will deliver a written message, talk
with the borrower, and even hand them a cell phone with you on the
line to discuss moving forward and resolving the issue.
Additionally, they can report back on the condition of the property
and if, for example, the property is vacant they will talk with the
neighbors who are often very helpful.
The Wake Up: Shock And Awe
The Borrower Wake Up is the first step in our process of getting
these loans moving forward. Regulations vary by state. For example,
California State Bill 1137 requires that the borrower be contacted
on three different occasions before a formal notice of default
can be filed. As a result we have developed what we refer to as
"the shock and awe package."
It is a FedEx box that is delivered three times and contains a very
professional and legal-looking binder with a professional cover
letter, demand for payment, copy of the note, and copy of the deed
of trust.
The Workout: Lemons To Lemonade
Once contact is made we ask them, "What happened? What's happening
now? What would you like to do to move this forward?" Here you need
to focus on your listening skills and build rapport with the
borrower. Empathize with their current situation and assure them
that if they will work with you - this problem can be resolved and
will benefit all.
We ask the borrower to submit a detailed history of their current
financial situation including tax returns, income, and all savings,
pension plans, etc. to be considered for a loan
modification/forbearance plan. We analyze the information and build
a repayment plan that the borrower can comfortably afford for the
long term.
The study of credit reports is an art that once mastered can
greatly increase your chances of success. They are by far the most
important indicator even on notes with little or negative
equity. Statistics show that the "Emotional Equity" and credit
history and potential of the borrower are what really tell you the
story.
Once you have purchased your non-performing junior lien you will
need to show your borrower that "there is a new sheriff in town"
and that you are very serious, professional, and determined to wake
them up and provide a workout solution through win/win options that
benefit both parties. I often tell them that "today is a good day
for you - a human now owns your loan, and we can accomplish
positive outcomes that a bank cannot - if we can work together to
solve your problem."
It is a relationship you must develop with these borrowers to prove
to them that you are not the faceless, soulless bank that treated
them like a number. Do this, and your chances of getting paid over
the long-term will increase dramatically.
I'll be teaching much, much more about non-performing junior liens
-- how to find them, analyze, negotiate, and turn them into
cash cows, profitable re-performers -- at the Paper Source Note
Symposium later this month. I hope to get to know you there!
SEE THE VIDEO ON NON-PERFORMING JUNIOR LIENS AT
www.PaperSourceSeminars.com -- SCROLL DOWN TO GORDON'S BIO.
Gordon Moss' website is www.realestateandnoteinvesting.com
**************************************************************
BIBLES UNBOUND
You can send a Bible to someone who desperately wants one!
Visit Bibles Unbound, a ministry of Voice of the Martyrs,
and see how you can become a Bible Mailing Missionary:
www.BiblesUnbound.com
***************************************************************