Investing in Non Performing Loans (NPNs)

[CA renter]

[quote=NeetaT]”I know of one group that will take investments of $100,00 and pool them with other, larger investments.”

I may be interested. Do they have a website?[/quote]

I will see if they (and Rich!) will allow me to put up their info on this site. If not, then anyone who is interested can PM me, and I will get back to you with the info.

[CA renter]

[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.

You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]

Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.

I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
————–

Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.

I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.

Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.

[CA renter]

[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.

You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]

Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.

I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
————–

Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.

I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.

Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.

[CA renter]

[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.

You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]

Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.

I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
————–

Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.

I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.

Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.

[CA renter]

[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.

You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]

Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.

I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
————–

Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.

I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.

Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.

[CA renter]

[quote=pabloesqobar][quote=CA renter]I know of one group that will take investments of $100,00 and pool them with other, larger investments.

You never really know what the returns will be because every package is different, and the fees and costs vary greatly. From what I’m hearing, you could probably net anywhere from 20-70%+, IF everything goes right.[/quote]

Wow, those are huge numbers. I’m guessing the risk is higher as well. Probably not secured by first TD’s on property that have plenty of equity to cover you after fees/costs.

I was fortunate enough to get in on a deal at 11% for 1 year. Even that made me nervous. (I think you know him).[/quote]
————–

Yes, from what I understand, they are buying notes on properties all across the country, so there is more risk because they are dealing with different laws and regulations WRT foreclosures, etc.

I was told that they were first lien notes, but cannot find that specifically stated in the documents I’ve reviewed. Their exit strategy is to have capital returned within 2-3 years, though five years is possible.

Yes, there is definitely a fair amount of risk. I am still researching this myself, and have not yet invested anything. Will not and cannot make any recommendations either way, as everyone has to do their own risk assessment.

[clearfund]

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…

[clearfund]

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…

[clearfund]

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…

[clearfund]

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…

[clearfund]

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…

[socrattt]

It seems as though everyone has a squeeze page or landing page these days and something to sell. The only problem is who to believe. This guys idea definitely sounds high risk as the market is poised for a interest rate rebound which could change things overnight.

At this point in the market I think just about everything has a ton of risk involved as the government is playing puppet master of the stock market and RE markets. Choose wisely when investing and remember that just because one person has mastered a system the chances are it’s already too late to capitalize!

[socrattt]

It seems as though everyone has a squeeze page or landing page these days and something to sell. The only problem is who to believe. This guys idea definitely sounds high risk as the market is poised for a interest rate rebound which could change things overnight.

At this point in the market I think just about everything has a ton of risk involved as the government is playing puppet master of the stock market and RE markets. Choose wisely when investing and remember that just because one person has mastered a system the chances are it’s already too late to capitalize!

[socrattt]

It seems as though everyone has a squeeze page or landing page these days and something to sell. The only problem is who to believe. This guys idea definitely sounds high risk as the market is poised for a interest rate rebound which could change things overnight.

At this point in the market I think just about everything has a ton of risk involved as the government is playing puppet master of the stock market and RE markets. Choose wisely when investing and remember that just because one person has mastered a system the chances are it’s already too late to capitalize!

[socrattt]

It seems as though everyone has a squeeze page or landing page these days and something to sell. The only problem is who to believe. This guys idea definitely sounds high risk as the market is poised for a interest rate rebound which could change things overnight.

At this point in the market I think just about everything has a ton of risk involved as the government is playing puppet master of the stock market and RE markets. Choose wisely when investing and remember that just because one person has mastered a system the chances are it’s already too late to capitalize!

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