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Investing in Non-performing Loans

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Investing with Non-performing Loans

Investing in Non Performing Notes can be one more revenue stream to use in your real estate business. You can purchase some notes for 50 cents on the dollar or less. Buying notes at 50 cents on the dollar does not guarantee a good investment, but if you can buy a note cheap enough, you may be able to get a very high return on your investment.

Since the notes are non-performing, you can usually purchase them at a large discount. After an investor purchases a non-performing loan (NPL), the investor can take many different avenues to profit on the loan, from loan modification to foreclosure.

There are many different ways to make money with non-performing notes. In some cases, you may even end up with a very cheap rental property. It is worth looking into.  Troy Fullwood knows that not every deal that comes across his desk will be alike.

Once an investor purchases non-performing loans, they have to decide how to make money on the note. The borrower is not making payments and they may or may not be living in the home anymore. There are many options to pursue with these notes, all of which can be very profitable. Since the investor owns the note, they can be very flexible working with the homeowner to help them stay in the home or allow a short sale.

How to make money on non-performing loans

  • Quick Flip: Purchase the property at a discount, improve it and sell quickly.
  • Cash for Keys: Purchase the property from the former homeowner who is going through foreclosure. You give them a certain amount of money, they sign the Deed in Lieu. You will avoid any fees attached to the property and the homeowner avoids having a foreclosure on their record. You can then either sell or rent the property.
  • Reduce the Principle Balance: Negotiate with the homeowner to pay the non-performing note, writing a new and more reasonable mortgage for the homeowner. Once you have a record of timely payments, you can resell the note to an investor.

Making sure you obtain advice from your attorney prior to making any moves on a non-performing note or loan is good business sense and will protect your interests.

Understanding the process of REO and non-performing notes can be a lucrative and rewarding investment practice. For more information you can always reach out to Pinnacle-Investments to schedule a call.

Knowing the Law on Deed’s

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Regardless of what type of investing you are on the market for in the real estate world, you always want to make sure you have a contract for the deed. Knowing the law and the how it obtains to your deed is one of the most crucial steps in your investing process. We all need […]

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Yellen Says Interest Rate Hike Could Come ‘Soon’

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Federal Reserve Chair Janet Yellen mentioned the U.S. central bank is close to lifting interest rates as the economy continues to create jobs at a healthy clip and inflation inches higher. A rate hike “could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the committee’s objectives,” Yellen will […]

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Foreclosures at a High in America

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The housing market today in America is at a new high for homes that are in foreclosure. Jumping from 27% from September to October alone per the recent article in Business Insider.  The housing inventory appears to be at an increasing rate of foreclosures. Especially FHA and VA loans that typically carry low down payments. […]

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What Trump Presidency Election Could Mean For Investors

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What a Trump Presidency Could Mean for Investors Everyone right now is obsessing over what kind of impact a Trump presidency will have on taxes, immigration, trade policies, and international relations, just to name a few. But a more specific question I find myself pondering is what will the real estate mogul turned most powerful […]

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Benefits Of Having A Partnership

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Is a Partnership Right For You? There may be more horror stories about ex-business partners than about ex-spouses, and taking on a partner in some ways are more dangerous; especially when you consider the U.S. divorce rate is more than %50. Friendships have been ruined and families torn apart by well-intentioned business plans. However, this […]

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NPLS: RISKY REWARDS?

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            Non-performing loans (notes) are ripe for high rates of return and potentially, large profit margins. The economy is improving, be it at a very slow rate, therefore bank regulations are still encouraging lenders to rid themselves from certain non-performing assets. Currently, there are millions, maybe even billions of dollars’ […]

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Effective Time Management Strategies For Today’s Real Estate Investors

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Besides making money fast (and lots of it), one of the most popular reasons for getting into real estate investing is for the freedom and free time it can deliver. For those that really want to find success in this industry, they need to become extremely efficient with their time. So it only makes sense […]

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Is it better to invest in real estate or mortgage notes or both?

The one constant of the current real estate market is its volatility. Years after the housing bubble burst and the Recession having ended, the market has not calmed down. The collapse of the housing market in 2007 was the defining feature of the last two decades when it comes to real estate. Millions of homeowners […]

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Mortgages as Investments

Every investment opportunity comes with a risk involved and the aim of any investor is to reduce the risk. One way of doing so is by investing in mortgage notes. The basic definition of a mortgage note is a promissory note which is secured by the specified mortgage loan. Simply put, notes refer to written […]

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How We Can Help!

Receiving payments on property sold?

Tired of waiting for your money?

Worried the buyer will stop paying?

Let Us Help...

We Buy Mortgage Note, Trust Deeds, and Contracts Nationwide!

 
Accepting payments on the sale of real estate might have made sense at the time, but circumstances change.

Many sellers discover they would now prefer cash today rather than the small amount that trickles in each month.

Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash:
 

  • Retirement
  • Taxes
  • Investment Opportunity
  • Expensive Medical Care
  • Vacation
  • College Tuition
  • Unexpected Financial Changes
  • Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
  • Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

 
The only way to decide what is best for your situation is to know the options available.

Discover Your Options - Request A Free Note Analysis!