May 26, 2021
By Mike Ruscica
Mike’s coaching program is life-changing. What everyone really wants is to be truly happy. We all hear about it on T.V, YouTube, or Facebook ads but, unfortunately we don’t all know how to get there. Mike has a gift for helping you to open up and realize your true potential.
How do you make money from a loan that someone is not paying?
It takes everyone some time to get their head around our process, but once you do, you will realize its full potential.
Let’s just take the first nonperforming note I ever invested in.
This was a Home Equity Line of Credit that was taken out in 2005 by a borrower that had purchased the home in 2002 with a standard 1st mortgage.
By 2005 the home prices had risen dramatically (like you are seeing today) and the borrower qualified for a new 2nd mortgage in the form of a HELOC.
A $56,000 loan was given to the borrower for who knows where the money went, it was all the norm back then to take a loan out to consolidate debt, take a nice Vacation. By 2008 they had fallen seriously behind, and the bank sold this and other non performing loans to my mentor in a bundle.
This bundle had a few hundred loans all bunched together and were sold at a huge discount. Let’s say .07 on the dollar, yes .07 on the dollar. The banks just don’t and won’t go through the bother of doing the work that we are willing to do and in most case are not allowed to do what we can. So this $56,000 loan was purchased for less than $4,000.
I purchased it for .10 on the dollar $5,600 and away I went.
I contacted the borrower and introduced myself, she hired a lawyer to make sure I was legit, the lawyer and I had a nice chat, I told him I could lower the monthly payment, bring the loan current for $2,600 and start accepting $250 per month going forward. I got half of my purchase price back up front and the entire purchase price back the first year.
That was in 2009. As of this writing I am expecting the full remaining balance of $34,200 to get paid off through a refinance in the next few weeks. Over 10 years worth of $250 per month and now a full payoff.
That is the note business from the investment end of it.
In our next podcast I will be discussing how to work this business with very little money.
Call Us Today
714 469 5529
Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.