Investing in Non Performing Loans (NPNs)

[Jumby]

What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…

[socrattt]

[quote=Jumby]What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…[/quote]

Jumby, it’s simple mathematics. If rates go up your “fraction on the dollar” purchase becomes a higher fraction. Prices will depreciate as rates rise, foreclosures increase and unemployment increases. You have to look at the big picture! A common sense investment approach is not so common sense anymore. I will guarantee you one thing, if you continue to think the way you do, you will lose in tomorrow’s market. Tomorrow’s market to me is defined as anything but today. The real estate market could essentially change overnight and now that we are officially in 2010 I can say the market will change dramatically this year!!

[socrattt]

[quote=Jumby]What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…[/quote]

Jumby, it’s simple mathematics. If rates go up your “fraction on the dollar” purchase becomes a higher fraction. Prices will depreciate as rates rise, foreclosures increase and unemployment increases. You have to look at the big picture! A common sense investment approach is not so common sense anymore. I will guarantee you one thing, if you continue to think the way you do, you will lose in tomorrow’s market. Tomorrow’s market to me is defined as anything but today. The real estate market could essentially change overnight and now that we are officially in 2010 I can say the market will change dramatically this year!!

[socrattt]

[quote=Jumby]What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…[/quote]

Jumby, it’s simple mathematics. If rates go up your “fraction on the dollar” purchase becomes a higher fraction. Prices will depreciate as rates rise, foreclosures increase and unemployment increases. You have to look at the big picture! A common sense investment approach is not so common sense anymore. I will guarantee you one thing, if you continue to think the way you do, you will lose in tomorrow’s market. Tomorrow’s market to me is defined as anything but today. The real estate market could essentially change overnight and now that we are officially in 2010 I can say the market will change dramatically this year!!

[socrattt]

[quote=Jumby]What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…[/quote]

Jumby, it’s simple mathematics. If rates go up your “fraction on the dollar” purchase becomes a higher fraction. Prices will depreciate as rates rise, foreclosures increase and unemployment increases. You have to look at the big picture! A common sense investment approach is not so common sense anymore. I will guarantee you one thing, if you continue to think the way you do, you will lose in tomorrow’s market. Tomorrow’s market to me is defined as anything but today. The real estate market could essentially change overnight and now that we are officially in 2010 I can say the market will change dramatically this year!!

[socrattt]

[quote=Jumby]What are you talking about? What do interest rates have to do with this? Could they raise and further press down values? Sure….but you are missing the point…investing in non performing notes allows you to buy non performing loans from the bank, you then own the real estate for a fraction of what was owed on it…and with nothing but foreclosures in the pipe, it is a very wise time to be on top of this…like I said earlier, I brokered a $1.5 million NPN, the investor is going to see a huge return on his money, the key is finding the banks that have NPNs (ALOT) and making sure you aren’t overpaying…[/quote]

Jumby, it’s simple mathematics. If rates go up your “fraction on the dollar” purchase becomes a higher fraction. Prices will depreciate as rates rise, foreclosures increase and unemployment increases. You have to look at the big picture! A common sense investment approach is not so common sense anymore. I will guarantee you one thing, if you continue to think the way you do, you will lose in tomorrow’s market. Tomorrow’s market to me is defined as anything but today. The real estate market could essentially change overnight and now that we are officially in 2010 I can say the market will change dramatically this year!!

[Jumby]

Socratt, what you are saying is common sense…this isn’t 2005 though, it’s 2010, when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

You can sit back and philosophize all you want or you can get in the game and see if there is anything worth your time and money….

[Jumby]

Socratt, what you are saying is common sense…this isn’t 2005 though, it’s 2010, when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

You can sit back and philosophize all you want or you can get in the game and see if there is anything worth your time and money….

[Jumby]

Socratt, what you are saying is common sense…this isn’t 2005 though, it’s 2010, when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

You can sit back and philosophize all you want or you can get in the game and see if there is anything worth your time and money….

[Jumby]

Socratt, what you are saying is common sense…this isn’t 2005 though, it’s 2010, when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

You can sit back and philosophize all you want or you can get in the game and see if there is anything worth your time and money….

[Jumby]

Socratt, what you are saying is common sense…this isn’t 2005 though, it’s 2010, when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

You can sit back and philosophize all you want or you can get in the game and see if there is anything worth your time and money….

[barnaby33]

when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

Get in the game? Buy now or be priced out forever? Where have I heard these before. Buying a note for half the face value in this environment means you now own a note that in most cases, is just face value. Lots of stuff that was loaned against in the last ten years are zero’s. Far flung exurbs, big box retailers in those exurbs etc. Maybe if you are getting those deals in places where people will want/need to go in the next few years, you’ll make out like a king. First you gotta tell me where those people are going to want/need to go.

Forget the inflation/deflation debate, thats just one peice of the puzzle. The savvy investor is not the one buying distressed debt, but distressed debt with a FUTURE and that sir is where the money will be made. Personally I wouldn’t be betting on anything in Arizona or Nevada, but that is just me.

Josh

[barnaby33]

when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

Get in the game? Buy now or be priced out forever? Where have I heard these before. Buying a note for half the face value in this environment means you now own a note that in most cases, is just face value. Lots of stuff that was loaned against in the last ten years are zero’s. Far flung exurbs, big box retailers in those exurbs etc. Maybe if you are getting those deals in places where people will want/need to go in the next few years, you’ll make out like a king. First you gotta tell me where those people are going to want/need to go.

Forget the inflation/deflation debate, thats just one peice of the puzzle. The savvy investor is not the one buying distressed debt, but distressed debt with a FUTURE and that sir is where the money will be made. Personally I wouldn’t be betting on anything in Arizona or Nevada, but that is just me.

Josh

[barnaby33]

when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

Get in the game? Buy now or be priced out forever? Where have I heard these before. Buying a note for half the face value in this environment means you now own a note that in most cases, is just face value. Lots of stuff that was loaned against in the last ten years are zero’s. Far flung exurbs, big box retailers in those exurbs etc. Maybe if you are getting those deals in places where people will want/need to go in the next few years, you’ll make out like a king. First you gotta tell me where those people are going to want/need to go.

Forget the inflation/deflation debate, thats just one peice of the puzzle. The savvy investor is not the one buying distressed debt, but distressed debt with a FUTURE and that sir is where the money will be made. Personally I wouldn’t be betting on anything in Arizona or Nevada, but that is just me.

Josh

[barnaby33]

when you are buying homes (through non performing notes) for HALF OF REPLACEMENT COSTS you are getting a great deal. These are the kind of deals that are out there right now for diligent investors. Times like these is when big money is made….

Get in the game? Buy now or be priced out forever? Where have I heard these before. Buying a note for half the face value in this environment means you now own a note that in most cases, is just face value. Lots of stuff that was loaned against in the last ten years are zero’s. Far flung exurbs, big box retailers in those exurbs etc. Maybe if you are getting those deals in places where people will want/need to go in the next few years, you’ll make out like a king. First you gotta tell me where those people are going to want/need to go.

Forget the inflation/deflation debate, thats just one peice of the puzzle. The savvy investor is not the one buying distressed debt, but distressed debt with a FUTURE and that sir is where the money will be made. Personally I wouldn’t be betting on anything in Arizona or Nevada, but that is just me.

Josh

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