Buying Defaulted Mortgages - Don't Focus On One Exit Strategy
During a conversation the other day, a new Note Buyer told me that he decided to start investing in buying defaulted mortgages. He had been wholesaling properties for a very long time prior to this.
When he said to me "Dean, the reason why I want to get into buying defaulted mortgages is not only for the cash flow, but I want to keep these people in their properties. This is what worried me.
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.
Don't Try to Use Only One Exit Strategy For Buying Defaulted Mortgages
It doesn't work.
You see, you may WANT to pursue A SINGLE exit strategy for the defaulted mortgages you purchase (in this case, he was looking to re-perform all the notes he bought - possibly by modifying them all - and then to hold them for cash flow).
How To Buy 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.
Nadal is a really well-balanced tennis star. He has an amazing serve, excellent grass court experience, plays solidly on clay, and can fire a wicked forehand.
You should follow the same idea when buying defaulted mortgages. Pursuing multiple exit strategies will make your note buying business more profitable.
Be careful you don't "stick yourself" with one note buying strategy.
Using Foreclosure as a Buying Defaulted Mortgages Tool
When trying to modify a loan, sometimes the only way to get a borrower to cooperate with you is to start the foreclosure action.
And you might ask why?
Sometimes people need a wake up call, like a foreclosure notice to get them to take control of their situation. If they have been missing payments on a regular basis with no real threat, why take action? The notice combined with your help to modify their loan may be just what they need.
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.
If you want to do well in the note buying business, you need to be a jack of all 5 Exit Strategies.
When he said to me "Dean, the reason why I want to get into buying defaulted mortgages is not only for the cash flow, but I want to keep these people in their properties. This is what worried me.
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.
Don't Try to Use Only One Exit Strategy For Buying Defaulted Mortgages
It doesn't work.
You see, you may WANT to pursue A SINGLE exit strategy for the defaulted mortgages you purchase (in this case, he was looking to re-perform all the notes he bought - possibly by modifying them all - and then to hold them for cash flow).
How To Buy 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.
Nadal is a really well-balanced tennis star. He has an amazing serve, excellent grass court experience, plays solidly on clay, and can fire a wicked forehand.
You should follow the same idea when buying defaulted mortgages. Pursuing multiple exit strategies will make your note buying business more profitable.
Be careful you don't "stick yourself" with one note buying strategy.
Using Foreclosure as a Buying Defaulted Mortgages Tool
When trying to modify a loan, sometimes the only way to get a borrower to cooperate with you is to start the foreclosure action.
And you might ask why?
Sometimes people need a wake up call, like a foreclosure notice to get them to take control of their situation. If they have been missing payments on a regular basis with no real threat, why take action? The notice combined with your help to modify their loan may be just what they need.
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.
If you want to do well in the note buying business, you need to be a jack of all 5 Exit Strategies.
About the Author:
Interested In Finding Out More about the Note Buying Business? Hours ofFREE 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 Credit Counseling at
2:34 AM
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