Don’t Flip This House!

       Why this home flipper pivoted to buying notes, and created an online note buying community… Fuquan Bilal, Founder of National Note Group, kicked flipping houses to the curb. Here’s why he did it, and how more investors can enjoy a rewarding transition to investing in highly profitable mortgage notes…

In Pursuit of True Freedom

       Leader of the NNG Note Academy, Mr. Bilal recognizes flipping houses, and spending hours drooling over eye candy at interior design stores can be enticing, and financially rewarding. After all, he has been a successful flipper himself. However, for Fuquan, these days are now focused on acquiring pools of mortgage notes, and helping homeowners. I dial 973.855.4922 (the head office of NNG)…the phone rings. And just when you are mentally preparing yourself for facing the grueling process of navigating yet another automated phone system…a REAL person answers! To the background beat of live deal making in process, in the active NJ headquarters of National Note Group, Mr. Bilal’s calm voice, conveys the confidence of a highly experienced, and unflustered money manager that would be just as at home in the center of the Wall St. bull pen, as on the couch, watching TV with the kids. In the exclusive Realty 411 interview that follows, Fuquan breaks down how easy it has been made for investors to buy notes, how they can stay safe doing it, and why more should.

       After joining the ranks of house flippers vying for big paydays buying and fixing up houses in the early 2000s, Fuquan says he woke up one day and realized that he had become a “slave to money,” a position which was “robbing him of a real life, and true freedom.” As all house flipping investors know, it is an easy trap to fall into. Flipping houses can be incredible profitable. Yet, the promise, and potential for a 4 hour work week, often instantly dissolves in the face of ambition, and the thrill of the chase of the next deal. Before long it can become more than a full time job, and a highly stressful one. So Mr. Bilal, assembled a top team with almost 3 decades of experience in the mortgage note, and debt investing industry. National Note Group was launched, and eventually, the

       Note Academy, which equips and teaches others to invest in notes safely and successfully. Now the industry thought leader spends his time turning others onto the incredible perks of note investing, and helps homeowners and families stay in their homes. Notes can still be used as a tool for flipping houses, but Fuquan says he enjoys the enhanced freedom they offer for facilitating more time with his family, adding “you can still spend your weekends browsing at Home Depot, if that’s really what happiness means to you.”

Why Buy Notes?

       Bilal says “There has never been a better opportunity for creating cash flow, and acquiring these assets at a discount, while enjoying more passive income and wealth building.” The desire to “retire early” is obviously one of the biggest drivers behind interest in all types of real estate and mortgage investments. However, this note investing educator says “buying mortgage notes is equally attractive to currently active hands-on real estate investors as it is beneficial for busy professionals such as doctors, lawyers and engineers, seeking superior returns and security than the stock market can provide.” Mortgage notes are known for offering high yields, but with the brick and mortar backing of direct real estate investment, without any of the hassle that comes with property management and maintenance.

Getting Started in Note Investing

       Prior to founding National Note Group, company president, Mr. Bilal started investing in notes with his own money (and still does). He tells Realty 411 readers that while many individuals are moving large portions of their capital and portfolios over to debt investing through mortgage notes, it is entirely possible to get started with as little as $7k to $8k. However, he is quick to point out that those able to invest at least $25k are better off, by being able to benefit from immediate diversity across multiple 2nd mortgage notes. Given the high rates on these loans, Fuquan says earning yields of $600 a month in cash flow on this modest amount of investment isn’t uncommon. Some have perceived venturing into note investing as complex in the past. However, National Note

       Group’s spokesperson tipped us off to NNGNoteAcademy.com, which was built as an industry first, revolutionary, virtual note investing resource center and online community. Here both aspiring and veteran investors can access forms, documents, top level tips and tools, share information, and sign up for events like the 6 week Cash Flow Boot Camp course, and ongoing voice support. It’s like a “GPS navigation system for investing in mortgage notes.” Life Happens + The Bridge While the media has done an outstanding job of declaring foreclosure rates as declining across the nation (even while new defaults are surging by triple digits in some zip codes), National Note Group sees incredible rewards and sustainability in this sector.

       We are reminded that defaults will always be present due to a variety of life factors, and that current perceived dips in foreclosure activity, and REO sales are actually in large part due to banks and mortgage lenders selling the paper to avoid the high costs and hassles of the foreclosure process. National Note Group acts as the bridge between Wall Street and Main Street to provide individual investors with access to attractive note buying and investment opportunities. Investors can choose to buy individual mortgage notes through NNG, or become capital partners, and invest in a pooled fund. This second option provides the security of an SEC regulated and approved investment, along with the superior security of being collateralized by the entire fund’s assets. A unique new feature NNG has just included offers the ability to draw down from the pool to acquire individual notes too.

Note Smarts: Navigating NPLs NNG specializes in institutional note buying, and specifically in second mortgages.

       Targeting higher yield non-performing second mortgage loans, behind performing first mortgages is among the strategies that have made National Note Group so successful, and has given their investors the best of both worlds - in yield and performance. Still, Fuquan elaborates that comprehensive due diligence is performed prior to acquisitions. This includes evaluating equity status, and individual borrower credit reports. He is clear that “the goal is not to foreclose,” but instead “whenever possible to assist homeowners and their families get caught up and stay in their homes.” However, he continues that there are some cases in which borrowers simply can’t afford their homes. In these situations NNG goes the extra mile to help them relocate, often including assistance with moving and move-in expenses for a rental home to provide a graceful exit and fresh start. For investors Mr. Bilal highlights that any notes in states which take longer to foreclosure on are protected by offsetting these timelines with deeper discounts.

GET CONNECTED:

Those interested in learning more about buying, selling and investing in notes and debt funds will find more details and support online at NNGNoteAcademy.com and NationalNoteGroup.com, or by simply dialing the above hotline.