Are Investors Still Investing?

Of course! Even in this uncertain time, investors are still investing!  Believe it or not, while a lot of folks took a shave on stock market losses, they say you’re supposed to buy low right?  In the mortgage note industry, seems like this is the best time for mortgage note investors too.  Although recent legislation has made it so many borrowers can defer their mortgages (if hardship is verified), stave off foreclosure and evictions, these deferments and quarantines won’t last forever.

Some of my note investing colleagues are already seeing more inventory come through, lower pricing and their private lenders clamoring to get their funds in play!  I know it’s a rough time for many borrowers and renters, but this will pass. Unfortunately, a lot of people may not recover from this.  In a previous article I talked about how some bank lenders are offering relief from mortgage payments to borrowers.

I’m seeing stories about how many of the lenders are offering three months deferment of payments, then the borrower must come up with the sum of those three months in the fourth month!  I don’t know whose bright idea that was to call that “helping” the borrower.  Some lenders are waving late fees, not reporting nonpayment or late payments to your credit reporting bureau and deferring the mortgage.

Again, the best thing about being a note investor is that we can offer more flexible terms to borrowers in ways that traditional banks and lenders WON’T offer.  Borrowers are urged to call their bank to request any deferment, it’s not automatic.  It’s not automatic with note investors either, but many of us have been proactive in contacting our borrowers to discuss expectations and how we can help them if they are in financial distress.

Surprisingly, I am seeing a lot of investors saying many of their borrowers have been able pay as normal, at least for now.  I don’t want to make this sound like everything is rosy.  Of course, there are a lot of borrowers that won’t be able to pay as normal, but those are the ones that can be easily helped if they have a mortgage with a private lender.

For investors using their IRA’s, this means that your cash flow will still be deposited in your account as normal.  If you have not investigated yet how to get better than average returns using your IRA to invest in notes, now is the perfect time!

For more information on notes or if you have notes to sell, reach out to Zee at Awanna Holdings, LLC (571)659-5005. ?Awanna Holdings, LLC (Apr 2020-17), [email protected]/www.awannarandh.com