Looking for NPL / NPN Note Purchasing Education

8 Replies

I'm looking to get into purchasing non-performing notes and am trying to find some good educational tools to get me started. I've looked into guys like Eddie Speed and others, but they seem to focus on PL for cash flow. I'm strictly looking for non-performing in a specific area that has an abundance of non-performing loans. Any ideas?

Hi Tom a good place to start would be FCI Exchange, they have a good inventory of notes for sale "by owner" and you can search by area, loan position and status. 

As far as education, feel free to contact me via the Connect link and I'm happy to make some recommendations. 

Bob

Originally posted by @Bob E. :

I would avoid Non Performing right now.  The party is over in this sector.

I respectfully disagree with you Bob. I'm seeing a lot of inventory come across my desk. If you attended Note Expo then you hopefully saw Cade Thompson's presentation where he cited some examples of where us smaller investors will find inventory:

Government Inventory

Recently Listed Pools of NPL will be worked-out over next 2 years with Low Value NPL sold into tertiary markets and direct opportunities for smaller investors.

•On November 18th, 2015, HUD will offer 24 non-performing residential mortgage pools consisting of 8,300 notes and an aggregate unpaid principal balance of approximately $1.3 billion. The sale will consist of 19 Neighborhood Stabilization Outcome (NSO) Pools ($715MM UPB) and 5 diversified national pools ($600MM UPB).

•FNMA Non-Performing Loan Sale 2015-NPL3: 7,000 NPL with approximate UPB of $1.2B – Mid December Close

FHLMC Non-Performing Loan Sale SPO Pool: $327M in UPB – Mid December Close

FHLMC Non-Performing Loan Sale EXPO Pool: $23.9M in UPB – Cook County, IL

The above are just from GSE liquidations. Banks will also continue to liquidate their extremely delinquent inventory.  So I'm confused, with you being a Note School student, why you would make such a statement?

Bob

I would have to side with the above comments about the party definitely not being over. People are and will continue to default now and into the foreseeable future. Will pricing and volume remain the same in future years as it is now? Probably not. It's a flexible market. But you will still be able to buy NPN's years from now. However the learning curve is steep, so keep that in mind moving into this space. Much study, learning and due diligence is needed to sort the wheat from the chaff with regards to assets.

Josh