Non-Performing Note Success
Published: Thu, 08/07/14
A service of The Paper Source, Inc.
August 7, 2014
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In this issue: The 6 Steps To Success In Non-Performing Notes
by Gordon Moss
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Hi ,
Gordon Moss' article is below.
The hottest topic in the cash flow brokering and investing
world right now is non-performing notes; NPNs for short.
Even most experienced note investors and note brokers do not
understand this niche -- those that are new to notes don't
understand it either.
You can get in on the ground floor at our one-of-a-kind
live class -- DEVOTED EXCLUSIVELY TO NON-PERFORMING NOTES.
"Profits In Non-Performing Notes: Turning NPNs Into Cash Cows" will
be Nov. 20-22 in Las Vegas.
I've assembled the top experts on NPNs -- people who DO what they
teach. And you'll get private consultations with them, no charge!
As always at Paper Source events: Absolutely NO SALES PITCHES.
We expect a strong turnout of note and real estate investors, note
brokers, hedge funds, hard money lenders and others. Whether you're
brand-new to notes or have years of experience, you won't want to
miss this one. It will be a tremendous networking opportunity!
You will learn how to turn NPNs into reperformers.
And you will learn how to buy performing loans that have already
been modified by hedge funds to earn double digit returns just by
collecting payments.
There is much more. For additional details and to register,
see
http://papersourceseminars.com/non-performing-notes-seminar-2014/
or call 1-800-542-2270.
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
P.S. The Super Early-Bird Discount expires midnight Sunday,
Aug. 31, so register now to lock it in. Just $297.00 for
teaching, consultations, open bar receptions, breakfasts, elegant
luncheon and networking, networking, NETWORKING! All included.
And check out the free 50 minute NPN training video "Why Seconds
Come First by Sandor Lau at
http://papersourceseminars.com/non-performing-notes-seminar-2014/
Sandor will be teaching at the Nov. seminar and available to
sit down with you for a complimentary consultation.
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The 6 Steps To Success In Non-Performing Notes
by Gordon Moss
(Gordon will be teaching at the Paper Source NPN seminar in
November.)
What is THE most unique and abundant opportunity in our real estate
and note investment market today? I believe it is the
non-performing real estate note.
Banks today are saddled with a tremendous glut of defaulted and
under-performing real estate paper. Contrary to the belief of
some, banks are not in the "bad debt" business. They also don't
have a strong desire to foreclose or favor holding a large
portfolio of REO (Real Estate Owned) assets. They are in the
lending business, not the non-performing real estate note business.
Do you think it is possible that a banker with a non-performing
note might want to sell you the note at a substantial discount to
achieve his goals -- which might be to get this asset off the books,
comply with regulators' requirements, and regain the ability to
make new loans? The answer is YES.
What does it take to become a non-performing note buyer?
Bankers do not have the time or desire to educate you. They must
believe that you have the knowledge, experience and resources to
effectively solve their problems.
When dealing with these bank assets you will not be talking with
the president of the bank, but usually a mid to lower level asset
manager whose main focus is most likely to be his or her own job
security in our current, turbulent banking environment. If you can
develop trusted relationships with these bank managers that have
the types of assets you desire with the need to liquidate -- and you
can prove that you can solve their problems through buying the
unwanted assets -- than the next several years can be a great
opportunity to make large profits buying defaulted notes.
1. Start by learning the rules of the game of buying real estate
notes. You must master the language and process of buying
distressed notes to gain the credibility you will need to buy real
estate notes successfully.
2. You need to decide what type of collateral/product/location you
see as the best fit for your investment strategy.
For example, we have focused on the Western United States, trust
deed states, and only good quality single family houses as our
collateral. Our group has a strong background in buying real
estate notes on commercial properties and will build that part of
our acquisition business moving forward -- but you must develop a
plan to buy real estate notes that works best for YOUR note buying
objectives.
3. Then it is time to hunt for the note sources.
Our current environment is littered with all types and flavors of
note brokers. Very few of these note brokers will prove to be
profitable relationships for you. Most of them are "chasing their
tail" trying to sell you undesirable note paper that they have no
control over and at high prices.
4. Learn the current market. That is KEY to making profitable
note buying decisions.
Look at as many notes as you can get your hands on. You will then
get a feel for pricing and quality of the product that you are
focusing on. After looking at a few thousand notes from many
different note sellers you will have a sense for a bargain when you
see it.
5. Once the note is acquired you must follow the correct
procedures (if you buy notes from funds, they will take care of
most of the procedural paperwork -- WJM).
6. Exit strategies in buying real estate notes are the real art of
this business, and the way they are handled will determine your
level of success. A short list of these include:
-- Resale of the note (getting cash for notes you have purchased)
-- Loan Modification/Forbearance Plan
-- Short sale of the property
-- Cash for keys
-- Deed in lieu of foreclosure
-- Foreclosure
Gordon Moss is the #1 expert in investing in SECOND position
non-performing notes.
He began his career in real estate in 1985 as a commercial
real estate broker in Orange County California. He has been an avid
student of the masters of all facets of the real estate and
investing business for over 25 years. He now owns and manages a
portfolio of properties and notes full time and is very
passionate and active in what he believes is the best real estate
and note investment opportunity we will see in our lifetimes,
non-performing notes.
He will teach at the Paper Source seminar on non-performing notes
Nov. 20-22 in Las Vegas, along with many other NPN experts. Visit
http://papersourceseminars.com/non-performing-notes-seminar-2014/
or call 1-800-542-2270.
The price of $297.00 goes up midnight, Sun. Aug. 31, so lock in
your registration now!