Buying Defaulted Mortgages - One Exit Strategy is Not Enough
The other day I had a conversation with a new Note Buyer who informed me that after a long career in wholesaling properties, he was going to start investing in buying defaulted mortgages.
The thing that worried me was when he made the following statement. He told me that the reason why he was getting into the business of buying defaulted mortgages was not only for some good cash flow, but also to keep people in their houses.
Please don't get me wrong, of all people I would be the first to admit that Humanity does count. But...
Don't forget about the bigger picture here.
When Buying Defaulted Mortgages, Don't Only Focus On One Exit Strategy
It doesn't work.
Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can't. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.
Buying Defaulted Mortgages: Multiple Exit Strategies Are Needed
If you want to be successful in your investments in defaulted mortgages, you need to be like Rafael Nadal.
With an amazing serve, grass court and clay court experience, and a great forehand, Nadal is a well balanced tennis star.
You should have the same approach when you are buying defaulted mortgages. Have the ability to pursue multiple exit strategies at once in your note buying business.
Don't get stuck with just one note buying strategy.
Using Foreclosure as a Buying Defaulted Mortgages Tool
Sometimes it takes starting a foreclosure action to get a borrower to cooperate with you in getting a loan modified.
And Why?
The foreclosure action acts like a wake up call to someone who has been missing payments on a regular basis. That in combination with your help in their loan modification may be just what they need to get going to work their way out of their situation.
Be careful not to fall into the same trap as the investor I talked to.
1 Exit Strategy for your Defaulted Mortgage Buying business will not work. It will not be enough to make you successful.
You really need to be a jack of all 5 Exit Strategies to do well in the note buying business.
The thing that worried me was when he made the following statement. He told me that the reason why he was getting into the business of buying defaulted mortgages was not only for some good cash flow, but also to keep people in their houses.
Please don't get me wrong, of all people I would be the first to admit that Humanity does count. But...
Don't forget about the bigger picture here.
When Buying Defaulted Mortgages, Don't Only Focus On One Exit Strategy
It doesn't work.
Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can't. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.
Buying Defaulted Mortgages: Multiple Exit Strategies Are Needed
If you want to be successful in your investments in defaulted mortgages, you need to be like Rafael Nadal.
With an amazing serve, grass court and clay court experience, and a great forehand, Nadal is a well balanced tennis star.
You should have the same approach when you are buying defaulted mortgages. Have the ability to pursue multiple exit strategies at once in your note buying business.
Don't get stuck with just one note buying strategy.
Using Foreclosure as a Buying Defaulted Mortgages Tool
Sometimes it takes starting a foreclosure action to get a borrower to cooperate with you in getting a loan modified.
And Why?
The foreclosure action acts like a wake up call to someone who has been missing payments on a regular basis. That in combination with your help in their loan modification may be just what they need to get going to work their way out of their situation.
Be careful not to fall into the same trap as the investor I talked to.
1 Exit Strategy for your Defaulted Mortgage Buying business will not work. It will not be enough to make you successful.
You really need to be a jack of all 5 Exit Strategies to do well in the note buying business.
About the Author:
Interested in learning more about the Note Buying Business? We Offer Hours of FREE Training Videos here: Buying Defaulted Mortgages Real-life, Up-to-Date Information for You. Visit NoteBuyingProfits.com or Call 718-783-7605 Or Click Here: Buying Defaulted Mortgages From Dean Engle & NoteBuyingProfits.com - This time on Buying Defaulted Mortgages
posted by Debt Consolidation Loan at
2:26 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home