Non-Performing Notes Can Make You Happy, Happy, Happy!
Published: Tue, 09/03/13
Sept. 3, 2013
Hello again ,
Gordon Moss' article on profiting from an investment
virtually NOBODY knows about -- non-performing junior liens -- is
below.
Gordon will be teaching in-depth in Las Vegas at our
seminar "Profits In Non-Performing Notes: Turning NPNs Into Cash
Cows" Friday and Saturday, Sept. 27 and 28.
For those two full days you'll learn virtually everything
you need to know about what many believe is THE note and real estate
opportunity of the decade.
*** But you only have until midnight Sun., Sept. 15 to get the
final discount. The price goes up Sept. 16. ***
Jack Krupey will teach you what you need to know to profit from
1st lien NPNs -- both investing and brokering -- and Gordon will
teach you how to profit from investing in junior NPNs. They are both
extremely well-qualified. They make their living DOING what they
(seldom) teach, not from giving seminars. You'll see what I mean
when you read their bios at http://snipurl.com/npnseminar
And they'll be happy to sit down with you for complimentary
personal consultations.
Plus, you'll make invaluable contacts - perhaps lifelong
friendships - with the REAL players in the business.
(Don't worry: there will be NO SALES PITCHES.)
Please visit http://snipurl.com/npnseminar now. Watch the
videos. Listen to the free teleseminars on NPNs. And sign up for
THE non-performing note event of the year!
Cheers,
Bill Mencarow
P.S. The final discount disappears forever at midnight Sunday,
Sept. 15. Better grab it now before the price goes up!
http://snipurl.com/npnseminar
P.P.S. Or you can call The Paper Source at 1-800-542-2270.
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THE NON-PERFORMING 2nd LIEN
Part I
by Gordon Moss
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 recognized as THE most experienced buyer of non-performing
2nd liens. He will be teaching in-depth at the Paper Source NPN
training in Las Vegas Sept. 27-28.
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Only a few days left to take advantage of the FINAL
discount for the Paper Source's "Profits In Non-Performing
Notes: Turning NPNs Into Cash Cows." Info, videos, free
teleseminars and registration: http://snipurl.com/npnseminar
or call 1-800-542-2270. Join your colleagues at THE non-performing
note event of the year!