| How to Buy Mortgages from Banks - Different Deal Sources |
| Articles - Mortgage |
|
Buying Mortgages from Banks, What To Do
Buying Mortgages from Banks, What To Do Let me share with a commonly asked question. "My understanding is the federal government is going to be offering financing to private equity and hedge funds to buy up the bad debt aka defaulted mortgages." If anything it would seem this would at the very least invite a whole heck of a lot of competition. "What are your thoughts on this?" My thoughts are this: How to Buy Mortgages from Banks - The Four Buckets In terms of "competition" it just adds to the deal source for buying mortgages from banks. In the note buying industry, there are four buckets: a) $100 million and above - Big Boys b) Mid Boys - buy $20-100M b) $1-20M - Small Boys d) Less than $1M - Mom and pops It seems to me that the shuffling is taking place around the big boy and mid boy state, and this is in terms of raw dollars. So lets think about these investors financials for a second. They are only concerned with their yields on their note buying investments. Defining Your Deal Sources & How to Buy Mortgages from Banks If you're a Mom and Pop or a Small boy, the Mid and Big boys are now deal sources to buy notes for you! They are looking for a huge internal rate of return (IRR) so they are buying more aggressively than what you will see compared to the small boys and the mom and pops. View them as a note buying deal source, partner up with them, come up with some transparent "Cost plus 5? type of approach where you give them 5 points in exchange for cherry-picking their portfolio and piggy-backing off their due diligence, and why wouldn't they be interested in selling notes to you? So if you're worried about the drip from the water fountain (or the firehose!) being intercepted in some way, just shift yourself a little so that you catch the drips from the guy who just got in front of you. And you can always go look for another water fountain to buy mortgages aka nonperforming notes. Hope this was useful (and inspirational) information for you. It's time for some action! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Interested in learning more about the Cash Flow Note Buying Business? Watch Hours of FREE Training Videos here: Buy NonPerforming Notes from Banks Real-life, Up-to-Date Information for You. Visit NoteBuyingProfits.com or Call 718-783-7605 Or Click Here: Buy Notes from Banks From Dean Engle & NoteBuyingProfits.com - This time on How to Buy Mortgages from the Bank |