Dr. Kenyon Meadows interviews Nav Athwal, CEO of RealtyShares, a leader in the real estate crowdfunding space. Real estate crowdfunding allows you to take relatively small amounts of money and participate in fix and flip or buy and hold opportunities all over the country. Learn about this emerging asset class including some details on a 19% private loan deal I participated in, my highest yield to date!
Dr. Kenyon Meadows interviews Bruce Morgan, founder of P2Binvestor, an innovative peer to business platform that allows investors to lend money to small businesses. P2Binvestor does all of the detailed underwriting to select only the most creditworthy small businesses that have growing revenue, and hard assets as collateral. In their 3 years of existence they have had no loss of principal and have produced double digit returns for investors in an asset that is secured and very liquid- an unusual but awesome combination!
There are many ways to make money in real estate, but perhaps one of the less well known ways is investing in distressed mortgages, also known as real estate “notes”. These are delinquent loans where the borrower has stopped making payments and the property is in some stage of the foreclosure process. In some states this can take years owing to the backlog caused by the foreclosure crisis which began in 2008. Working with the individual borrowers to modify their loans is time consuming process that banks aren’t set up to do. Instead the banks are willing to sell large portfolios of these mortgages at deep discounts to specialty companies who raise money from investors to buy the notes, and attempt to get them reperforming. When done properly, it’s a rare win-win-win situation where a homeowner gets a new affordable payment, the note company gets a profitable asset, and investors can get a high return on their money.
Dave Van Horn is president of PPR Note Company which stands for partners for payment relief. He is going to give us an inside view of the distressed mortgage note business, and how you can invest in one of his funds to get that high yield we all want. Enjoy!
My provider has just freshly renovated the home after acquiring it at a significant discount in an off market transaction. The property was distressed and got a complete makeover as detailed in Hassle Free Rentals with a new roof, HVAC, plumbing, etc. This is all designed to minimize the likelihood of any major repairs for the first few years of ownership. Once a well screened tenant is placed, our group will have the option to purchase the home at a price where the turnkey provider makes a profit, but still provides good cashflow for us. That’s why it is so key to get the property at a deep discount.
So did we pick it up? Watch and see.