The Orginial Realty Investing Magazine
Wondering if this is a good time to get in, or scale up your note investing?
Bought right and managed well, non-performing notes can have great potential in all types of market conditions. Yet, there are several factors that may make the next few months an even more profitable season for mortgage note investors.
1. The Economy is Looking Up
Jobs and wages are doing a little better in many categories. Stocks are certainly up, even if the fundamentals don’t justify it. Major companies are expanding US plants and hiring. For mortgage note holders this means it is more likely that borrowers will perform, or get back on track. If the job market continues to improve, more firms may help employees with relocation costs.
2. Credit is Rebounding
Millions of Generation X members are expected to see their credit scores finally get back on track this year. It’s been a long road for many to see the bruises from the crisis heal, and to rebuild new credit. Those in existing mortgages should be even more motivated to stay on top of payments, while others will finally be able to re-join the nation’s homeowners and investors.
3. Buyers Cashing Out Sellers & Lenders
Home equity is up, with far fewer owners now underwater. New mainstream and alternative finance is making a big push to generate more newly originated loans this year. This along with entering into the peak summer buying season means many lenders may find they are cashed out early, and net more than expected.
Together, the above dynamics bode well for mortgage note holders. This makes now a great time to be acquiring new notes, and possibly for seeing existing holdings surge in performance. Those who are still interested in more passive investing and benefiting from house flipping and asset repositioning can also enjoy the best of all worlds with the diversified hybrid NNG Capital Fund.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund