Strategies for your Note Investing business for 2020

[Martin Saenz]

Curious, what if any, changes everyone is making for 2020 given the ever changing note climate? I.E. Are you staffing up, committing more resources to dealflow, raising additional capital, selling off your RPL's, etc.

[Don Konipol]

@Martin Saenz

Our loans, both the ones we buy as well as the notes we originate, come about 98% from brokers. We have more $ than good buying/originating opportunities. We have just begun a program to (hopefully) generate deal flow directly from borrowers and institutions wanting to sell their notes.

Part of our issue with deal flow is that we won't settle for returns that are below our risk adjusted return model, or risks that are higher. When everyone is accepting lower ROI and higher risk, they are preparing to get killed in the next recession. Preservation of capital is our number one priority.