STRATEGIZE to profit from Non-Performing Notes:
This is Blog 5 of the FACTS system that I created for Non-Performing
Notes. This Blog clarifies the S part to “Strategize to profit”:
If you have performed the due diligence process in a timely
manner and bought a list of non-performing mortgage notes from a bank, there
are several options you have to be able to profit:
1)
You can foreclose
and evict borrower
2)
You can assist the borrower to be able to refinance
3)
You can resell
the Note for profit
4)
You can partner
up with an attorney that would foreclose and pay you off at a later date
when he/she resells it
5)
Do a deed
transfer in lieu of foreclosure with the borrower (cash for keys)
6)
You can work with the borrower to list and sell
his/her property and accept a short
sale that you approve based on the amount you want (remember you are the
lender and you bought the note at a discount)
7)
You can modify
the loan for the borrower to make payments that are affordable
8)
You can modify then sell a partial (meaning sell a few years of income from
the note then it reverts back to you for the rest of the years)
9)
You can create
an equity share opportunity with the borrower- where you can have them
make lower payments for a few years in exchange of a percentage of equity on
the resale)
10) You
can syndicate the loan (sell the
loan to a group of investors based on a work out payments you make with the
borrower or based on a pay off when you resell the note or the property)
Wishing
you the best investing. There is nothing like case studies and actual practice
in the investment world.
Contact my office for live training, coaching and mentorship programs in
Non-Performing Notes.
Sincerely,
Cherif Medawar
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