Frequently Asked Questions

What is the deal structure when paying defaulted mortgage notes?

We usually structure our deals as 100% financing investments, with our investors receiving an above-average return via a yearly percentage rate, which gets paid out either quarterly or annually. Generally, we would need a minimum investment of $50,000. Every investment would have a new agreement drawn up by our lawyer stating the agreed upon terms.

For investments under $200k, we usually offer a flat loan agreement with a flat interest rate depending on the amount invested. With investments over $200k, we set up a separate entity and can go 50/50 on profits.

What is your average annual ROI?

Our average ROI is 8-12% depending on the deal, which is on top of us paying back our investors.

What is the goal of the investment?

Our main strategy when purchasing a note, first and foremost is to try to rehab the borrower and get them back on track with payments. If that is not possible, we offer cash for keys, usually the same amount as foreclosure costs, with the idea of a faster turnaround. A foreclosure is always an option, and we make sure to only purchase debt in states with quick foreclosure laws.

If we do take the property back, we usually sell the property, either via auction, through investor connections, or on the direct market. If necessary we might do a light rehab/ clean-up/ paint/ landscape, but we avoid purchasing any homes that would require a full rehab. If rehab is needed we work with local realtors or investors in our network to gain access and help with repairs.

Who physically inspects the properties during due diligence? 

We have a network of realtors, investors, inspectors, and contractors across the country. We work with our contacts to perform BPO valuations, as well as title searches, and inspections.