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.
What worried me was when he said: "Dean, I want to get into buying defaulted mortgages in order to keep people in their homes and get some good cash flow."
Don't get me wrong. I'll be the first to admit that Humanity counts. 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.
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).
Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages
In order to invest successfully 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.
Follow the same approach when buying defaulted mortgages. Learn how to pursue MULTIPLE Note Buying Exit Strategies at once.
Don't limit yourself to one note buying strategy.
Buying Defaulted Mortgages - Using Foreclosure as a Tool
One useful tool to get a borrower to cooperate with you in getting a loan modified can often be to start a foreclosure action.
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.
Don't be like the investor I talked to. Don't fall into that trap.
If you want to be successful in your Defaulted Mortgage Buying business, 1 Exit Strategy is not enough.
To do well in the note buying business, know all of your 5 Exit Strategies.
What worried me was when he said: "Dean, I want to get into buying defaulted mortgages in order to keep people in their homes and get some good cash flow."
Don't get me wrong. I'll be the first to admit that Humanity counts. 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.
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).
Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages
In order to invest successfully 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.
Follow the same approach when buying defaulted mortgages. Learn how to pursue MULTIPLE Note Buying Exit Strategies at once.
Don't limit yourself to one note buying strategy.
Buying Defaulted Mortgages - Using Foreclosure as a Tool
One useful tool to get a borrower to cooperate with you in getting a loan modified can often be to start a foreclosure action.
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.
Don't be like the investor I talked to. Don't fall into that trap.
If you want to be successful in your Defaulted Mortgage Buying business, 1 Exit Strategy is not enough.
To do well in the note buying business, know all of your 5 Exit Strategies.
About the Author:
Get More Information 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
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