A Halt in Short Sales/Foreclosures is a Good Thing for Nonperforming Note Buyers
Everyone keeps asking us how in the world we are going to continue buying notes since so many of the lenders have put all short sales and foreclosures on hold. And I have to tell you that it delights me! If the banks have no way of getting rid of this bad debt off their books, their ONLY solution is to sell their defaulted mortgages aka nonperforming notes. So, Christmas 2010 is looking good! That, coupled with the fact that it is the fourth quarter, means everyone in the industry should see an overabundance of tapes with nonperforming notes.
I just can’t stress to you the importance of a team. In all that I’ve done in life (accounting, finance, sales, real estate, etc), I’ve always been so much more effective and productive with team members that specialize in specific areas, mainly the ones I don’t. ïŠ So many investors and gurus in the RE business tell you to avoid REALTORS, but I just wanted to state how important they have been in our business where most of the NPN’s we purchase are actually out of state and have never been seen by us.
Case in point, we have a SFR nonperforming note negotiated with the bank and under contract, but we still need to do our due diligence on value and marketability. I went straight to Active Rain, my favorite REALTOR networking site, and I found a REALTOR in Apple Valley, CA. As my very FIRST phone call, she answered and sent me comps with an hour and will be doing a drive by for me as well. Thank you, Karen Sanchez of Hamilton Landon GMAC in Apple Valley, CA! My second project was to find a commercial REALTOR in South Padre Island, TX for a NPN on a hotel we are trying to purchase. After 5 calls to REALTORS where I left voicemails that were never returned, my sixth call was charmed! I spoke with Sue Ann Taubert, Broker Associate with REMAX 1st Choice, and she actually answered as well, getting us comps within hours of our phone call and offering to do a 30 mile away drive by for us as well! Hats off to the ladies!!!
So many ask why REALTORS would do this for you for free. Well, it’s about starting relationships. If we purchase a nonperforming note on a property in their area, become the lender, and the take the property back as my own personal REO via deed-in-lieu or foreclosure, then we’re going to need someone to list/market it. WE all know that 85%+ of real estate is sold by REALTORS, so it would be silly to NOT to use one to help us sell fast, reap our profits, and move to the next deal.
Bottom line, is that we could not do this well in our niched business without our team players like title companies, REALTORS, appraisers, attorneys, etc. Get your team together NOW! And by the way, we have both of those notes under contract with the lender and will be closing by the end of the month. If you don’t get into nonperforming notes, now, you will regret it!
Iam looking to buy notes