Investing in Non Performing Loans (NPNs)

[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

[Jumby]

I’m surely not saying ‘buy now or be priced out forever’, don’t stretch it.

I think you summed it up nicely by saying..”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.”

If you can get stuff for half of replacement costs in areas like that then you should do it….that’s all I’m saying…end of story.

[Jumby]

I’m surely not saying ‘buy now or be priced out forever’, don’t stretch it.

I think you summed it up nicely by saying..”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.”

If you can get stuff for half of replacement costs in areas like that then you should do it….that’s all I’m saying…end of story.

[Jumby]

I’m surely not saying ‘buy now or be priced out forever’, don’t stretch it.

I think you summed it up nicely by saying..”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.”

If you can get stuff for half of replacement costs in areas like that then you should do it….that’s all I’m saying…end of story.

[Jumby]

I’m surely not saying ‘buy now or be priced out forever’, don’t stretch it.

I think you summed it up nicely by saying..”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.”

If you can get stuff for half of replacement costs in areas like that then you should do it….that’s all I’m saying…end of story.

[Jumby]

I’m surely not saying ‘buy now or be priced out forever’, don’t stretch it.

I think you summed it up nicely by saying..”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.”

If you can get stuff for half of replacement costs in areas like that then you should do it….that’s all I’m saying…end of story.

[EconProf]

In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.

[EconProf]

In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.

[EconProf]

In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.

[EconProf]

In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.

[EconProf]

In weighing the merits of buying distressed commercial and residential properties, or the loans thereon, keep in mind the ease of renting them at vastly lower rents. You can steal tenants from the competition which is in denial not only about the value of their own property, but the sinking rental value as well.
When you buy a property at half its peak price, you can slash the rents to fill it up and still make cash flow.
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.

[patientrenter]

[quote=EconProf]..
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.[/quote]

And some people insist on calling this the end-of-the-world RE-driven recession. It’s still way less severe than even the last RE downturn.

[patientrenter]

[quote=EconProf]..
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.[/quote]

And some people insist on calling this the end-of-the-world RE-driven recession. It’s still way less severe than even the last RE downturn.

[patientrenter]

[quote=EconProf]..
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.[/quote]

And some people insist on calling this the end-of-the-world RE-driven recession. It’s still way less severe than even the last RE downturn.

[patientrenter]

[quote=EconProf]..
I recall the early and mid-1990s apartment market in San Diego. When gloom and doom prevailed as apartment vacancies were in the teens, a few brave souls bought buildings for $30k per door, slashed rents, and filled up, much to the distress of mom and pop owners who refused to face market realities. Many of them suffered 30 to 40% vacancy rates rather than cut rents. Most went under, adding to the inventory for the bottom-fishers to scoop up.[/quote]

And some people insist on calling this the end-of-the-world RE-driven recession. It’s still way less severe than even the last RE downturn.

[Author]

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