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Opportunity to Create Wealth: Defaulted Notes
I was thinking lately about all the opportunity available right now in buying up distressed debt from hedge funds and banks. Someone asked me what kinds of people might be interested in this money-making strategy. Here is a short list:
· The real estate investor worried about the lack of housing inventory at investor prices
· The busy professional who is looking for better returns
· The graduate of guru seminars who is frustrated because what was taught is not working in this market
· The realtor who is looking for a source of listing leads
· The investor who wants to build cash flow and long term wealth
· The real estate investor who is tired of short sales, worried about the lack of REOs, and needs a new way to acquire property at investor prices.
Some have asked me why there is so much distressed debt on the secondary market right now. I have studied the trends and history shows that once a generation, lending institutions forget safe underwriting guidelines in search of higher returns. Eventually, the house of cards collapses and they must divest billions of dollars in bad debt by selling to the secondary market.
As a result, we are now enjoying the best property acquisition opportunity we have seen in a generation! No, this is not about short sales, REOs, or trustee sales. Instead, you can opportunistically buy distressed mortgage debt directly from hedge funds and lenders to acquire property or cash flow. Be advised: this window of opportunity will not last forever. Once lenders sell this massive quantity of bad debt over the next few years, it will be gone. The time is urgent to jump in and build wealth with this unique strategy that anyone with some time and effort can learn to do.
Our goal is never to pay more than 35-40 of BPO. This way there is enough room for potential foreclosure expenses and sufficient time to process.
It's time to jump in and benefit from defaulted notes to either acquire property or cash flow just like the bank.
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Brian Netzel has been a real estate and note investor since 1982 when he bought his first rental property on his public school teacher salary. He is now focusing on turn-around projects using distressed assets nationwide.
Brian Netzel is the acquisition manager for the private equity firm Inspired Capital Partners and the founder of SmartMoneyVision.com and RealEstateNoteInvestor.com which train investors to apply smart strategies that work in today’s real estate market.
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