Quote from Seb627 on January 15, 2024, 9:43 amIs the strategy of investing in NPLs to acquire properties a viable strategy? I know it can greatly vary on the state, and I imagine DD might be heavier on the property, as well as the process taking a long time.
Or, is hassle lower and returns better when you can get them to reperform?
Is the strategy of investing in NPLs to acquire properties a viable strategy? I know it can greatly vary on the state, and I imagine DD might be heavier on the property, as well as the process taking a long time.
Or, is hassle lower and returns better when you can get them to reperform?
Quote from Anita Iverson on January 19, 2024, 7:12 pmHi,
That is a great question! Exiting a note through foreclosure is one way, and some investors then keep the property and turn it into a rental, some investors then sell it. There are other ways to exit a note though, and with much less cost (foreclosure will require legal fees and your time!). This video goes over 6 ways to exit a note. Hope this helps! https://youtu.be/qxx8ymWOrGU?si=k8gzD0v0B1ERM_q8
Hi,
That is a great question! Exiting a note through foreclosure is one way, and some investors then keep the property and turn it into a rental, some investors then sell it. There are other ways to exit a note though, and with much less cost (foreclosure will require legal fees and your time!). This video goes over 6 ways to exit a note. Hope this helps! https://youtu.be/qxx8ymWOrGU?si=k8gzD0v0B1ERM_q8
Quote from Robert Hytha on January 23, 2024, 10:39 amYes, buying & negotiating a Deed in Lieu of Foreclosure (DIL) with the borrower (so they can avoid a foreclosure and possibly a deficiency judgement) is a great approach to acquire properties at a discount. Foreclosure is sometimes necessary as well.
One consideration here (if you are aiming on taking back the deed to the property) is to focus on loans secured by vacant homes or owed by deceased borrowers. Basically, avoid owner-occupied properties so your goal isn't to take your borrower's primary residence!
Timing to acquire the REO (real estate owned) can certainly be longer than getting a borrower modified so that factors into your Internal Rate of Return (IRR). For a state-by-state reference on foreclosure cost & estimated timeline, check our state database here (member's only portal).
Yes, buying & negotiating a Deed in Lieu of Foreclosure (DIL) with the borrower (so they can avoid a foreclosure and possibly a deficiency judgement) is a great approach to acquire properties at a discount. Foreclosure is sometimes necessary as well.
One consideration here (if you are aiming on taking back the deed to the property) is to focus on loans secured by vacant homes or owed by deceased borrowers. Basically, avoid owner-occupied properties so your goal isn't to take your borrower's primary residence!
Timing to acquire the REO (real estate owned) can certainly be longer than getting a borrower modified so that factors into your Internal Rate of Return (IRR). For a state-by-state reference on foreclosure cost & estimated timeline, check our state database here (member's only portal).