Is anyone buying non-performing loans?

[Linda D.]

Hi! Is anyone buying non performing loans? I am looking to learn more about this area.

[Logan Hassinger]

@Linda D.

I’ve found that the majority of people who have been interested in notes go in to it with the idea of “mailbox” money. That the  average investor can simply jump on to one of the note exchanges out there, pick up a performing note and collect the payments. While some of that is true, there’s more to it than just reviewing the property and an exchange of cash for the ownership of the note. 

Then you get into nonperforming notes and my apologies, I meant a business vs a job. 

I got into notes for a couple of reasons. I held a small portfolio of rentals that had significant equity and I also began to see my cashflow be eaten up CAPEX and unit turns. In my opinion, every rental has point at which it needs to be sold. I don't believe in lifetime cashflow from a single rental (not that you only buy and hold one rental but that that one rental can have significant equity growth with cashflow to float you, then you sell and do it again or trade up). Although you can achieve cashflow, it takes a "cycling" approach, IMO.

So my pivot in to notes came about from wanting to achieve similar returns that I saw in rentals without the same headaches (notes aren’t perfect and have their own headaches as well).

My background is in Investment/Corporate finance along with RE investing since 2015. Yes, feel free to check out My LinkedIn profile.