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:
- Note wholesaler
- Regional or local bank
Establish Buying Criteria
Objective Once Purchased
- UPB (unpaid balance)
- Market Value
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.