Hold Or Sell Your Loans?

[Chris Seveney]

We’re constantly buying and selling loans — especially after getting a borrower back on track and paying on time.

Once the loan is reperforming, the question always comes up: Do you hold it for long-term cash flow or sell it for quicker capital?

It’s a debated call — and it doesn’t always play out the same.

Lately, we’ve sold a few modified loans, and just heard back from three buyers: The borrowers paid them off in full.

That’s a win for them… and for us.
They got a solid return. We recycled capital. And in most cases, those buyers come right back to us for more inventory.

We've done both — held and sold — and each approach has pros and cons depending on the fund’s goals, liquidity needs, and asset profile.

Curious to hear how others think through this decision.
When you’ve got a reperforming note: Do you hold or sell?