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The Power Is Now Online Radio  Presents:

The Power Is Now Real Estate Resource  PIN Logo

Presenting: Jeff Merrick, CEO Granite Loan Solutions  www.granitels.com

Granite Loan Solutions Logo 1


Monetizing Notes

1st Lien – Residential – Non-performing – Discounted Mortgage Notes

Presented By Jeff Merrick - CEO

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GLS is committed to being a solution to our nations housing crisis. We create solution by acquiring major banks distressed assets in bulk and then immediately selling to private regionalized note investors or non-profit organizations. We also accommodate larger investment groups with structured sales of unworked assets so they too can become a part of the solution by offering the homeowners various workout opportunities. We believe that together we can work towards the stabilization of our countries economic challenges by creating profits, jobs, and ultimately a stable real estate marketplace.

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Todays Topics • How do NPNs (non-performing notes) differ from REO opportunities • Why would an investor want NPNs • Advanced exit strategies / business practices • Six different ways to earn on one note • What product is available and the prospect for future product

• How does one get the product?

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How do NPNs (non-performing notes) differ from REO opportunities ? • The amount of available assets are abundant • The competition is limited • The purchase price points are lower • When you buy notes “You Become The Bank” • Notes offer more exit strategies the REOs

• Greater margin for error which mitigates loss potential

“Distressed Notes Are The Mainstream In Todays R.E. Marketplace” 5


Why would an investor want to purchase NPNs ? •

1st TD non-performing notes can be bought at deep discounts Example: GLS sells NPNs from 10%, to 50% of todays as-is home value

With notes you can create cash flow or capital growth

When you acquire a note you “become the bank” and have all rights to foreclose, modify, sell at trustee sale, amongst executing many additional exit strategies

There are many sub-servicing groups/specialty servicers that can support you by handling all of the day to day loss mitigation activities for you such as collections, FCs, loan modifications, and note sales

There are many vendors that support the distressed note business such as National REO liquidation, and National property protection and enhancement

All of which allows you to scale your investment platform and create great profits

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Advanced exit strategies Capital Growth or Cash Flow Capital Growth Strategies •

Vacant NPNs • Deed in Lieu and then sell (flip) • Short sale with cooperation from owner • Foreclose then lease up then sell in the open market • Note sale

Occupied NPNs • Family sale / Borrower remains in property • Short sale / Cash for keys and then sell • Deed in Lieu or Cash for keys and then Sell • Modify / Re-trade as re-performing note • Modify / Refinance onto HUD loan borrower must income qualify for loan – 500 min. FICO • Note sale

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Advanced exit strategies Capital Growth or Cash Flow Cash Flow Strategies •

Vacant NPNs • Deed in Lieu and rent for income stream • Foreclose with the intent to rent for an income stream • Foreclose or Deed in Lieu and then sell under a land contract or carry back traditional loan • Modify loan and move family back into property

Occupied NPNs • Reinstatement – Full or Partial hold as re-perform for cash flow • Restructure Note/Modify for high yielding cash flow • Deed in Lieu or Foreclose then Leaseback • Deed in Lieu or Foreclose then create paper with Note or Land Contract

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What product is available and the prospect for future product ? •

Typically note buyers acquire notes from Hedge Funds, Private Equity Groups, Regional Banks, Servicers and other Secondary Sellers • The challenge with these sources is that the loans have been overworked by the owners loss mitigation teams and they only turn to secondary buyers to sell their tails at high price points which leaves little room for profitability to the new note owner

Some groups do have the necessary contacts, infrastructure, track record, exit strategies, and balance sheet to gain access to the major banks • Most groups cannot and should not acquire entire portfolios due to the fact that you cannot cherry pick whatsoever and typically have to buy in 35 states or more and have the sophistication to successfully execute strategies on all loans acquired

Based on conversations with actual bank traders there is literally trillions worth of bad debt to be traded and they forecast heavy trade activity for the next 4-5 years 9


How does one get the product? •

GLS is a direct seller of unworked NPNs – We have all files and assignments in hand and ready to ship

GLS typically has 100-500 loans available for sale • V.O.T.T. due diligence is provided on all loans which saves our buyers the up-front cost of approximately $300 per asset • One off (cherry picking) and bulk trades accommodated • All loans sold at wholesale pricing

GLS’s goal is to purchase 500-1000 loans per month so our customers have a constant supply to choose from

GETTING STARTED • Complete the GLS vetting package – can be found on our web site at www.granitels.com

Once approved you can start ordering custom tapes and looking at loans to purchase 10


Monetizing Notes

1st Lien – Residential – Non-performing – Discounted Mortgage Notes

Thank you For more information please visit our web site at www.granitels.com

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The Power Is Now Online Radio  Presents:

The Power Is Now Real Estate Resource  PIN Logo

Presenting: Jeff Merrick, CEO Granite Loan Solutions  www.granitels.com  Logo

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Granite Loans Solution: Monetizing Notes  

How do NPNs (non-performing notes) differ from REO opportunities Why would an investor want NPNs Advanced exit strategies / business...

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