Property & Valuation

Fair market value is the price a property would sell for between a willing buyer and a willing seller in the current market. For note investors, FMV determines the equity in a deal, drives every pricing decision, and defines your downside risk. This guide covers what FMV means, how to determine it using BPOs, AVMs, and comparable sales, and how to apply it throughout your due diligence process.

Understanding who is living in the property behind your note -- or whether anyone is living there at all -- shapes your resolution strategy, your risk profile, and your expected timeline. This guide covers the occupancy triangulation process, the data sources you can use to determine occupancy status, and why owner-occupied properties tend to produce better outcomes for note investors.

Cash-on-cash return gives note investors a fast, reliable way to price performing and re-performing loans by working backward from monthly cash flow to a maximum purchase price. This guide walks through the formula, builds example pricing at multiple yield targets, and explains how to cap your bid at the unpaid principal balance.

Bill Bymel of Spurs Capital breaks down two fundamental frameworks for pricing non-performing first-lien mortgages — market-based valuation using BPO percentages and yield-based modeling that targets a minimum annualized return. Drawing on nearly a billion dollars in NPL acquisitions, he walks through a live $9 million trade to show how experienced buyers bridge the gap between institutional pricing and double-digit returns.

Property value is the foundation of every note investment decision — it determines your equity coverage, drives your pricing model, and defines your downside risk. This guide walks through the full spectrum of valuation methods from free AVMs to paid BPOs and appraisals, and explains how to match the right method to the right deal.

A broker price opinion typically costs under $100, but note investors can get one for free by offering a local real estate agent the future listing if the property goes to foreclosure. This guide covers the $0 BPO strategy alongside free and paid valuation tools every note investor should know.

Pricing non-performing loans correctly is the difference between a profitable investment and a costly mistake. This guide covers two proven NPL valuation methods — bucket pricing by tranche and outcome-based pricing — so you can submit competitive offers with confidence.