- A Real Non-Performing Note Story
Published: Wed, 09/04/13
Sept. 7, 2013
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Below is part II of "THE NON-PERFORMING 2nd LIEN" by Gordon
Moss
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Hello again ,
Imagine buying a non-performing note (NPN) at 50 cents on
the dollar and making 40% on your money.
Does this really happen?
Here's a deal that Jack Krupey recently did:
Property Type: Single family house
Loan Position: 1st (non-performing)
Loan Balance: $121,000
Jack bought this (NPN) for $58,500. After foreclosure he
sold the house for $107,000. His expenses (other than the cost of
the note) were $20,464. His profit was $28,036. That's a 40%
annualized yield!
Sometimes NPN investors like Jack can work out a payment
plan with the defaulted borrower and make 20%-plus yields for years.
After all, when you buy the note for 50, 40, sometimes
30 cents or even less on the dollar, there's plenty of room to
create payments the borrower can afford and make a lot on your
investment.
What if you don't have that kind of money to invest? You
could find a non-performing first lien note and BROKER it to
an investor -- with no money out of your pocket -- for a nice
payday.
Jack and Gordon Moss -- who specializes in junior lien NPNs
(see Gordon's article below) will be walking you through deals
they've done (the good AND the bad, and what they've learned) Sept.
27-28 at our training in Las Vegas.
That's TWO FULL DAYS training you how to find, analyze,
negotiate, buy (or broker, in the case of first liens) NPNs.
You'll be ready Monday morning to start profiting!
(Don't worry -- you don't have to know anything about NPNs.
They'll start with the basics, even give you a glossary of terms.)
And Jack and Gordon will be happy to sit down with you for
complimentary personal consultations!
*** But you only have until midnight next 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, and Gordon Moss will do the same on 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
The ability to get to rub elbows with the real movers and
shakers that actually DO THIS is incredible.
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.)
Visit http://snipurl.com/npnseminar now. Watch the videos.
Listen to the free teleseminars. And sign up for THE
non-performing note event of the year!
Cheers,
Bill
W. J. Mencarow, President
The Paper Source, Inc.
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
Or you can call The Paper Source at 1-800-542-2270.
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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?
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.
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?
Once contact is made we ask the borrowers, "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.
When we've bought their loan for 20 cents on the dollar we have
plenty of negotiating room to build a payment plan they can
afford.
For example, here's a $40,000 2nd mortgage in default. The borrower
lost his job, now works part-time, and he can no longer afford
the $624/mo. payment on top of his payment on the 1st. We buy the
2nd for $8,000 (20 cents on the dollar). The 2nd lien holder is
happy to get $8,000 for this "worthless" mortgage. We then go to
the borrower and find he can pay $375.00 a month. We modify the
note. What's our yield on our $6,000 investment?
55 percent.
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
training later this month. I'll be available to sit down with
you and discuss your situation, answer questions and help you
get started in what I believe is THE note and real estate
opportunity of a lifetime!
The final discount for the training disappears forever midnight
next Sunday, Sept. 15. Better grab it now before the price goes
up! http://snipurl.com/npnseminar
Or you can call The Paper Source at 1-800-542-2270.
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