This is an overview of Donna Bauer's Training on the Notebuying process.
Over the past thirty years, Donna Bauer has been able to capitalize on every type of market simply by tweaking her note buying strategies to accommodate market conditions. In the last downturn, she increased her focus on the non-performing notes. Then as non-performing notes tapered off, she found a sweet spot with performing notes as sellers wanted to cash out of the seller-carryback notes that they had been forced to create because banks had tightened their lending criteria. So regardless of market trends, in one manner or another, notes have always proven to be an excellent investment vehicle, not to mention a great income generator.
When she realized the entire country was shutting down due to COVID, she was a little freaked out. What would happen if people couldn’t pay the mortgages that she held? Would note sellers still want to sell their notes and would investors still want to buy them?
She immediately started going through her notes to calculate the effect of giving the borrowers a three to six month moratorium on payments, figuring that she would just tack the payments on to the end of the note. She was happily surprised to discover that it barely affected her yield at all! When you are buying notes at a discount rather than investing in private loans that are one hundred percent funded, it is much easier to absorb the restructuring of the note without a huge fluctuation in your return.
Some people might have been worried about having to foreclose on their notes. Not Donna! Her first preference would definitely be to do a workout, but even in a worst case scenario, if she had to foreclose, she already knew that based on her original buying criteria, she had plenty of equity to cover a foreclosure. In fact, she might even wind up making a larger profit if she ended up getting the property.
In this presentation you will learn why notes can be profitable in any market and how note buying is proven to be a recession proof business.