Feedback from IMN NPL West Conference

[Chris Seveney]

Just got back from the IMN Non Performing Loan conference at Dana Point. Sidenote, if you have never stayed at the Waldorf-Astoria there, OMG, what a hotel....

Some of the highlights:

1. Commercial loan defaults are starting to hit the market, so some of the bigger players who were in the residential space last few years may look toward the commercial side.

2. Non performing residential loans are still a sellers market, but the bid-ask spread is starting to come closer together.

3. Returns you were getting 3-5 years ago are going to be extremely difficult to achieve today. Even though interest rates are higher, note yields have been compressed.

4. Raising money during this time has gotten a lot more difficult, several years ago raising $ for deals was not difficult. Today it is.

5. There will be opportunities in the short term fix and flip and bridge debt space, ala peer street. Many lenders are selling loans that have maturity defaults and there were a lot of inexperienced investors getting these types of loans.

6. Opportunity also in private lending space, as the good borrowers will pay a "speed tax", meaning pay higher interest for those who can fund faster.

7. The CFD market continues to see very few new loans. Best deal you can get is on a contract for deed.