I had a conversation with a new Note Buyer the other day, and he told me that he was launching himself into buying defaulted mortgages after spending a long time wholesaling properties.
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 lose sight of the forest for the tree.
Don't Try to Use Only One Exit Strategy For Buying Defaulted Mortgages
It doesn't work.
Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can't. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.
Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages
You have to be like Rafael Nadal in order to invest successfully in defaulted mortgages.
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.
Be careful you don't "stick yourself" with one note buying strategy.
When Buying Defaulted Mortgages, Use Foreclosure As A 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 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 lose sight of the forest for the tree.
Don't Try to Use Only One Exit Strategy For Buying Defaulted Mortgages
It doesn't work.
Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can't. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.
Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages
You have to be like Rafael Nadal in order to invest successfully in defaulted mortgages.
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.
Be careful you don't "stick yourself" with one note buying strategy.
When Buying Defaulted Mortgages, Use Foreclosure As A 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 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:
Want To Learn More about the Note Buying Business? Get 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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