Not sure who this group is, however, If you know what you are doing you can achieve very high returns averaging in excess of 20%/year based on a reasonable workout. Given the size of the loan purchases, and the need to diversify, the best approach is to invest via a fund or pooled investment with an experienced management team.

With our funds/clients we have been buying non performing loans (mainly commercial property) in CA/AZ/NV and performing loans at steep discounts to the unpaid balance (these get us high current yield). Examples: Office building in Phoenix $8mm NON PERFORMING loan for $2mm; $4mm PERFORMING loan for $2.5mm

It is the best way to access the property market at a good discount to value and avoid the games/competition at the ‘retail’ level. We only buy ‘off market’ loans from local/regional lenders as the values are best.

2010 will be the sweet spot for buying loans at a sizable discount to the underlying property’s current value…