All Forum Posts by: Chad U.

Since the new administration, there is nothing but stories of Canadians (and others) being denied at the border. As a Canadian, I have never experienced this much hostility for investing my money in the US but it seems even people going for business or have business or investments, have in fact been denied. I have 2 investment properties in Detroit and not only do I love visiting Detroit but I like to check on my properties periodically. I don't want to risk getting denied because they deem it as "working in the US"

Would love to hear if anyone has visited recently and what their experience has been.

I get pulled into secondary inspection and questioning on a regular basis since I started in 2013. I got to the point where I had to get an e2 visa. However came across just yesterday for vacation and had no issues, but was with family.

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Quote from @V.G Jason:

@Peter W.

To put you on some game about what I was talking about on another thread.

Pre-election 6 month chart. If Kamala won this would've tanked the equities market. Trump winning did the inverse. I got long CDS after Trump won--full disclosure. Very cheap bet, for a few hundred million you're paying .1% to put it on. Just as an insurance. This pays off less than 5% of the time, and maybe 1% of the time-- it's the jackpot. I'm betting on one of those two outputs.

YTD & 1M

To my point of 2023 with QE covering the reality of the market needing to get smacked:

I said it before in this thread and I'll say it again-- go find the (over)levered positions and you will make a fortune. Lifetime supply of money.

Nice, so you are taking a long position on CDS? Where do you buy these, IBKR?

Another sure bet during these volatility swings is playing the VIX. When it hit >60 last week, I went short. Been paying off quite nicely.

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Denver, Colorado

To add to Chris' reply, I'm seeing a lot of people applying for and receiving Homeowner Assistance Funds (HAF) recently which is also masking the foreclosure rate. However this rush for HAF might also be due to Trump and DOGE policies abolishing these programs, since afterall most were put in place to protect against people losing income due to Covid.

But as Russell points out, the default rate is a fraction of its peak in early 2010's and still far less than the long term average.

2 Votes

Quote from @David Cooper:

Hello BiggerPockets community,

I'm looking to better understand how mortgage notes are priced. What factors influence the sale price of a note, and how do you determine a fair market value?

- property value
- payment history
- borrower credit profile
- interest rate
- no. payments left
- desired yield

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Bridgeport, Connecticut

Ditto. A lot of HML fix n flip and DSCR NPLs lately. Particularly seeing an uptick in Multi-family NPLs.

Wouldn't touch Covid originated loans with a ten foot pole, and there's a ton of FHA NPLs out there.

Seeing an influx of HECMs, and sellers are loosening their belts somewhat.

2 Votes

Quote from @Ying Tang:

@V.G Jason There are actually people who make millions off these things. They need to get in and get out quickly, as if they were playing video games. A lot of young folks are into this. They have their groups for doing that, they would get on a video conference and ask everyone to buy when they think "the time comes" for a specific meme. I decided it's not for me.

Yep, for most memes you gotta be in the trenches and if you're lucky enough, get in on the cabal. Only way to truly make it.

2 Votes

Denver, Colorado

Quote from @David Cooper:

I came across a hypothetical note: $100K loan balance, 6% interest rate, and $800 monthly payments. The property is worth $150K. What would you consider before buying this?

First off, need the number of remaining payments to determine the yield.

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Washington, DC

Just confirming that you do realize that you're at risk of not recouping whatever capital you've put into your 2nd? If the property sells at auction for just the amount owing on the 1st or less, you'll be wiped out. Also if no one bids and the 1st position lienholder takes the property back at foreclosure.

Therefore I would anticipate bidding at the auction to ensure the bid gets over the combined amount of owing on both the 1st and your 2nd. If you are the highest bidder will need to come up with the funds.

You can approach the first lien holder to see if they would sell to you beforehand, possibly they might sell at a discount. As for the tenant, you may have to honor any lease agreements that may be in place if they are locked in for any duration.

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Couldn't agree more. When I started investing in notes I used 300k of my own capital and didn't take on any investors until I had at least a dozen deals under my belt. Not to mention that I had already been investing in real estate for 10 plus years, five of which had been investing in distressed real estate including buying at foreclosure auctions.

2 Votes

All Forum Posts by: Chad U.

Chad U. has started 40 posts and replied 1706 times.

Post: Foreclosure with Reverse Mortgage

Post: Any Canadians with US investments who've crossed the border successfully recently?

Post: Putting $1M into Crypto

Post: 35,000 US Properties Foreclosed In March - Did You See That Coming? I Did, Here's Why

Post: Understanding Pricing Strategies for Mortgage Notes

Post: What We Are Seeing In The Non Performing Loan Space

Post: Putting $1M into Crypto

Post: Would You Buy This Note? Let’s Analyze Together!

Post: Foreclosing in NY: Can I Combine 1st and 2nd and proceed to REO?

Post: I wanna invest in notes