Tapping Mortgage Note Investors For Wholesale Property Deals
by blogger1
on Thursday, 26 June 2014
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Are mortgage note investors now one of the best sources of house deals for real estate wholesalers?
Current market conditions are ideal for real estate wholesalers. Some real estate investors of course have been complaining about the decline of foreclosure homes and publicly available inventory, as well as the rapid rise in home prices in their local areas. So where can more deals be found? Could note investors be the gatekeeper to a new sweet spot, and source of discounted homes for flipping?
It’s no secret that banks and asset managers have both delayed starting the foreclosure process on thousands of delinquent home loans, and have continued to hold many properties off market. What many may not realize is just how many of these non-performing loans are being shuffled off bank books to note investors.
The U.S. housing market is healing, but new, and legacy defaults are still substantial. However, the statistics showing foreclosure activity dropping are largely in part due to bad loans being sold off to other investors, rather than the banks foreclosing, auctioning them of, or selling them as REOs.
A growing number of real estate investors have been buying non-performing notes in the hopes of bringing them back to performing again, and benefiting from high yields and discounts.
Of course, not all of these loans can be made to perform, even if they are modified. Some borrowers simply can’t afford to keep their homes, or have no intention of trying. In these cases note investors need to foreclose, or permit short sales in order to allow homeowners a way out, and to be able to recoup capital. Note investors like the benefits of paper, they don’t want to be stuck with real property. It just doesn’t fit their strategy.
For wholesalers that can connect and build relationships with these mortgage note investors the opportunities for tapping into a significant stream of properties ripe to be flipped is huge. It provides a valuable service to note investors and homeowners, while skipping ahead of those competing for wholesale deals on the MLS, at auctions, or in mailboxes.
With Best Transaction Funding wholesalers can take on virtually unlimited volume, and flip far more houses than their competitors. It is just a matter of finding them, and building relationships. Note investors can be found in online real estate forums, advertising in magazines, via Google, and at local Meet Ups.
Current market conditions are ideal for real estate wholesalers. Some real estate investors of course have been complaining about the decline of foreclosure homes and publicly available inventory, as well as the rapid rise in home prices in their local areas. So where can more deals be found? Could note investors be the gatekeeper to a new sweet spot, and source of discounted homes for flipping?
It’s no secret that banks and asset managers have both delayed starting the foreclosure process on thousands of delinquent home loans, and have continued to hold many properties off market. What many may not realize is just how many of these non-performing loans are being shuffled off bank books to note investors.
The U.S. housing market is healing, but new, and legacy defaults are still substantial. However, the statistics showing foreclosure activity dropping are largely in part due to bad loans being sold off to other investors, rather than the banks foreclosing, auctioning them of, or selling them as REOs.
A growing number of real estate investors have been buying non-performing notes in the hopes of bringing them back to performing again, and benefiting from high yields and discounts.
Of course, not all of these loans can be made to perform, even if they are modified. Some borrowers simply can’t afford to keep their homes, or have no intention of trying. In these cases note investors need to foreclose, or permit short sales in order to allow homeowners a way out, and to be able to recoup capital. Note investors like the benefits of paper, they don’t want to be stuck with real property. It just doesn’t fit their strategy.
For wholesalers that can connect and build relationships with these mortgage note investors the opportunities for tapping into a significant stream of properties ripe to be flipped is huge. It provides a valuable service to note investors and homeowners, while skipping ahead of those competing for wholesale deals on the MLS, at auctions, or in mailboxes.
With Best Transaction Funding wholesalers can take on virtually unlimited volume, and flip far more houses than their competitors. It is just a matter of finding them, and building relationships. Note investors can be found in online real estate forums, advertising in magazines, via Google, and at local Meet Ups.
