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.
One Exit Strategy Is Not Enough When Buying Defaulted Mortagages
It just won't work.
A SINGLE exit strategy for the defaulted mortgages that you buy may be what you want to pursue. (in this example he was looking to hold all the notes as cash flow by modifying them and getting them to re-perform).
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.
Nadal can do it all. He has a great serve, an awesome forehand, and can play an excellent game on both the grass and clay court.
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 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.
Don't fall into the same trap the investor I talked to did.
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.
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.
One Exit Strategy Is Not Enough When Buying Defaulted Mortagages
It just won't work.
A SINGLE exit strategy for the defaulted mortgages that you buy may be what you want to pursue. (in this example he was looking to hold all the notes as cash flow by modifying them and getting them to re-perform).
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.
Nadal can do it all. He has a great serve, an awesome forehand, and can play an excellent game on both the grass and clay court.
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 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.
Don't fall into the same trap the investor I talked to did.
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? 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
2:14 AM
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