FELLOW INVESTOR

Wall Street has stolen 97% of the deals in your local market.

Here’s what’s been happening

Mortgage lenders got caught with their pants down in the late 2000’s. They lent money to people for homes they couldn’t afford… and caused the housing market to collapse. This left banks with a lot of problems..one of which you might not be fully aware of..

There were more homes to foreclose upon than the banks had resources to deal with… simply to many homes for them to try and take back. So they struck a deal with Wall Street and created

A NEW FORECLOSURE PROCESS

There are currently more than 6 million None Performing Notes across the country with another 3 million expected to go online in 2016.

Banks are now bundling up these None Performing Notes or Loans in Default and selling them at a deep discount to Wall Street Hedge Fund Companies at a pace of over $100,000,000 per week.In other words, they buy them in big lots and sell them in small pools to average investors at 20-50 cents to the dollar… which leaves plenty of meat left on the bone for the investor to make out like a bandit, the trick is to understand how this market works…and to get on the inside with these Hedge Fund companies and this is what we do! Not to mention that there are only 5000 note investors across the country which makes the supply so much greater than the demand. If you do the math here you can see why this is the Golden Egg in real estate investing.

When purchasing a non-performing note’s, you’ll get one of two things…

• Easy cash-flow Or
• A property at 20%-50% of itscurrentvalue that you can then turn around and sell for big profits or use to create a healthy cash-flow

Here’s what happens in a typical deal… when you invest in a non-performing note, you are taking over control of a property where the owners haven’t been paying. The first thing you can try to do (especially if you are after cash-flow) is to get the note re-performing.

To do this we contact the owner to find out if they are interested in staying in the home and if they are, we simply modify the loan to something that makes sense to both them and us. We then collect the monthly payments for 6-12 months and then sell the loan as a Performing Note which typically commands up to 80% of the note. This process takes 12-24 months

Here is Example how this works in a best case scenario :

Let’s say the owner bought the property at $155K and they put $5k down leaving a balance of $150K

The present value of the property is $80K

We purchased the note for $40K

We modify the loan to $80K at 8% amortized over 30 years which makes the payment $587.00 per month.

Let’s say we sell the note after 12 on time payments at 80% of the note value

Now let’s look at the math :

• 12 Payments of $587.00 = $7,044
• Note sold at 80% = $64K
• Gross sale of the note including monthly payments is $71,044
• Subtract the investors investment of $40K leaves a gross profit of $31,044
• $31,044 profit is a gross yield of 78% which is split between the investor and ROI leaving a profit of 39% each.

Here is Example how this works in a worst case scenario :

Let’s say the owner bought the property at $155K and they put $5k down leaving a balance of $150K

The present value of the property is $80K

We purchased the note for $40K

We foreclose on the property and sell to a real estate investor 70% of the value

Now let’s look at the math :

• Property sold at 70% = $56K
• There will be an average foreclosure costs of $5K
• Subtract the investors investment of $40K and the $5K in foreclosure costs leaves a gross profit of $11,000
• $11,000 profit is a gross yield of 28% which is split between the investor and ROI leaving a profit of 14% each.
• Now if the owner agrees to a Deed in Lieu of Foreclosure we can add back in the $5K of foreclosure costs to the profits which would make the gross profit $16k which is a 40% yield which would then be split between the investor and ROI leaving a profit of 20% each.

The greatest advantage to the investor is we do all the work and the investor’s investment is secure just like the original bank was.