| Buying Defaulted Mortgages - Multiple Exit Strategies Needed |
| Articles - Mortgage |
|
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 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. One Exit Strategy Is Not Enough When Buying Defaulted Mortagages 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). 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 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. When Buying Defaulted Mortgages, Use 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? Because for someone who has been missing payments regularly and hasn't been current for a while, sometimes a wake-up call with a foreclosure notice (combined with a helping hand from you to help them with a loan modification) is what prompts them to get their act together, take control of their situation, and to work their way out of their delinquency. Don't be like the investor I talked to. Don't fall into that trap. 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. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about the Note Buying Business? Watch 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 |