Non-Performing Hard/Private Money Loans

[Eric Boshart]

Hi BP Community,

I'm a private money lender in the DFW metroplex, and I'm looking for creative ways to be helpful and scale my business. As the market is shifting, I'm curious to know if anyone is seeing any opportunities to buy NPL's from hard/private money lenders. Typically HML/PMLs' workout capabilities are more sophisticated, and their underwriting is more property-focused rather than borrower-focused, but nevertheless I'd love to be helpful to these private institutions that might have loans on their books that they don't want anymore. The note investing industry is very mature in the conventional mortgage sector, but I have yet to see opportunities to purchase non-performing, short-term, high-interest debt provided to investors.

As we're growing, I've raised more capital, so I figured this could be an effective way to deploy that capital within my core competency. I'd love any direction from more knowledgeable professionals than I.

Thanks in advance!

[Chris Seveney]

@Eric Boshart

Yes we are seeing a lot more of these loans. Most sellers will sell the entire portfolio which the lowest I have seen is around $1.5M and most are $5-10M