Now with that said as we grow in our investing, we choose to have a larger cash position to help us survive longer in tough patches as they come along. 

To survive, you need persistence, determination, consistency, and be able to find and lock up deals such that the seller wins, your buyer wins and you win.

There are not many businesses that can survive that hit.thanks, Matt

They can't survive on long term fixed commercial debt.This is why I tell my clients look for owner finance deals with some down or we need to put partners together to go after a bigger deal where you can land non-recourse, long term loans, and a low fixed interest rate.

So, here are the “main steps” to getting going in NPNs as it relates to my strategy as I see it:1.Find prospective NPNs for purchasing [obtaining from inventory of a company like Granite]2.Perform due diligence on the NPNs [understanding the defect and why note is now nonperforming]3.Analyze the NPNs that survive diligence [crunching numbers re upb, cost of servicing, etc. to see what max price I can pay while still having a reasonable chance of obtaining my desired yield]4.Negotiate and purchase the NPN [finding the “highest price I will pay for it”]5.Park the NPN at a servicer6.Instruct the servicer to contact the owner and begin rehabbing the NPN7.If the owner is amenable and an agreement can be reached, monitor the note until it is seasoned and then begin marketing the rehabbed note8.If the owner is not amenable or an agreement cannot be reached, foreclose on the collateral9.Regardless of which avenue was taken (either selling the rehabbed note or foreclosing), go back to step 1So here are my questions:1.How do I ensure that my steps 2 and 3 are thorough?

It might seem counter productive to go that route, but it might cost you more in the long run waiting for A/B tenants than just finding a C tenant who's willing to sign a lease and capable of surviving 9 or so months before running into issues at which point you evict.

Glad you survived the wreck and rehab :-)

I de-leveraged Prior to the last (Great) Recession and this is probably why I weathered through it without much worry.As a lender, even a niche guy, I've watched who survives and who doesn't.

If you want to survive in real estate today, you've got to get back to basics and learn to run a BUSINESS!

How would we survive.