Buying Defaulted Mortgages - One Exit Strategy is Not Enough
During a conversation the other day, a new Note Buyer told me that he decided to start investing in buying defaulted mortgages. He had been wholesaling properties for a very long time prior to this.
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."
I do admit that Humanity counts, don't get me wrong. 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
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 limit yourself to 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.
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 fall into the same trap the investor I talked to did.
Don't think that 1 Exit Strategy to your Defaulted Mortgage Buying business is enough to make you successful.
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."
I do admit that Humanity counts, don't get me wrong. 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
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 limit yourself to 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.
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 fall into the same trap the investor I talked to did.
Don't think that 1 Exit Strategy to your Defaulted Mortgage Buying business is enough to make you successful.
To do well in the note buying business, know all of your 5 Exit Strategies.
About the Author:
Learn more about the Note Buying Business? For Hours ofFREE 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
posted by Debt Consolidation Loan at
3:02 AM
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