Become the Bank™ | Think Realty | A Real Estate of Mind

Become the Bank™

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The next step in the non-performing note (NPN) process is to evaluate before buying:

The eValuation 360°© Process of NPNs is the process prior to paying for the Note. It begins working with a reliable source of NPNs: servicer, small bank, and/or NPN wholesaler. Decide your buying criteria UPB (unpaid balance). As an example, if the UPB is $100,000, what is your buy rate 10%, 20%, 50% discount? What type of loan should you consider? A conventional mortgage, CFD (contract for deed) VA, FHA, or HECM (Reverse Mortgage). The interest rate is also consideration of buying; it is part of the six steps in getting the Note re-performing. The last and most important consideration is your objective once the note is purchased. Do you get the note re-performing, foreclose, or deed-in-lieu? This established objective will structure the above options.

Whether it is 1 or 101, the evaluation process is the same, even if you are looking at buying any kind of debt. The NPN is the nucleus of real estate investing, Become the Bank™ is the Road to Wealth.

eValuation 360°© Process:

Source

  • Servicer
  • Note wholesaler
  • Regional or local bank

 

Establish Buying Criteria

Objective Once Purchased

  • Re-perform
  • Deed-in-lieu
  • Foreclose

Purchase Model

  • UPB (unpaid balance)
  • Market Value

 

Interest Rate

Loan Type

In the non-performing note industry, the investor has the ability to manage the investing process, but it takes time, due diligence, building relationships, and gathering a team. Next Step

The implementation of the Model of 10™ as previously published is the post-side of the note purchase; now the ROI begins.

The non-performing note is the nucleus for all real estate investing in distressed product and essentially is the beginning process to all distressed properties. As the investor, you become self-sufficient in creating other real estate models, all the while building long-term wealth.