Category: Chaz Guinn

Hey everyone, Chaz Guinn with Revolve Capital.

We’re really starting to ramp up here in Q3 of 2020. right on our home page, under Buyer Application at the top is where you’re going to get signed up with us.

We’re showing out monthly offerings containing of both non-performing mortgages, re-performing mortgages, we’re also selling single one-off assets.

For many of you that have never even heard of a mortgage note that has gone delinquent and want to get into this space, but you couldn’t go directly to a major bank to buy a one-off. So there has to be some sort of bridge between a major Tier 1 bank and you as mainstream.

Come in and get signed up,, we are looking forward to start trading with you.

“Hey everyone, Chaz Guinn with Revolve Capital…

We come into situations and pricing discussions with you as our audience every single day. We appreciate it because you guys are trying to find value and an opportunity and arbitrage potentially in this market.

Especially as we navigate ourselves through a global pandemic, we are starting to see that this market… this distressed arena, has been insulated from a lot of the headwinds that many different industries have ran into. That is why you know 12 years into this business, it is such a reward to really see the different market changes that we’ve seen since 2008. You know you fast forward here in 2020 to still see a real pullback and a recession in the market that industries like this can still thrive. Value and opportunity can still be found. This is where we really enjoy getting to meet a lot of people that are coming in and getting signed up with us, coming from many different backgrounds.

One of the pricing discussions we ran into especially if you look back into the 2010, ’11, ’12 days was home values were still losing a lot of their traction. For example, a hundred-thousand dollar house in 2008 had slid all the way back maybe to $75k or $80k in 2011 and 2012. If you fast forward to 2020, you’re starting to see that same example. The market value of that house has crept back up towards $100k to $105k Sure, the pullback from the early 2000 decades, that value has been regained here in 2020.

Let’s just use some pricing discussions that we’ve ran into with many of you. $100,000 house, $90,000 mortgage balance, Borrowers took out the mortgage in 2012. They made consistent payments on that mortgage for five years. Let’s just say the $90,000 mortgage balance dropped to $75,000 for round measure purposes, so $75,000 mortgage balance, $100,000 house value. In 2017-18, let’s just say a divorce a hardship, some sort of job loss occurred and the borrower stopped making the monthly payment. The ticker, or the contract amount, for that unpaid balance will stop there and the lender and servicer begin to make advances on the loan on behalf of the homeowner. That could be taxes, fees, interests, corporate advances, insurance premiums things of that nature that begin to tack on, on the side. If you have a $75,000 balance and a sub balance that’s starting to accrue as payments are missed and not made that is a total collectible balance that you as the investor can discuss with that homeowner in the event the homeowner wants to stay-and-pay or if you cannot get a hold of them and you want to foreclose that amount would be used at the auction steps.

Many of you have come into a question where you say, how can I price the loan if it looks like it has equity but it’s in foreclosure. If the $75,000 balance is the contractual amount that the borrower is no longer making and there’s a fee and a sub balance that’s beginning to accrue when that homeowner is either found and you start the communication again that collectible balance on top of the fully collectible balance is what we’re calling the total payoff for the loan. This is standard. We ask that you verify this information. But, if your loan or your deal appears to be a $100,000 house in an equitable based position, make sure you’re looking at that sub balance that’s been accruing, that allows you as the investor to approach a homeowner and have a total payoff balance, that allows you to recoup more of your funds.

We are going to be bringing you these types of real life concepts as we begin to negotiate, and really ramp up our business here in Q3. We’ll talk to you guys all very soon.”

“Chaz Guinn w/ Revolve Capital. We’re coming to you here Tuesday, July 7th 2020. We just released a new portfolio to put out in front of you guys. It’s a mixture of non-performing, some late-stage and some early stage. Some of the discussions we’re having with these borrowers are active pay plans where the borrower is showing us interest or verifying the income, the employment, things of that nature which allow you to eventually have a stable cash-flowing asset. Some of these deals are in the late stage of the foreclosure where they’re nearly going to be REO’s, where they’re at almost the sale date period. We put this out in front of you and we’ll keep this live the next couple of weeks. We ask that you make your offers immediately as offers are starting to roll in now. If you have questions on a particular deal, please include your loan ID and email the and one of our associates will get right back with you. We look forward to trading with you guys and staying busy as we really start to ramp up in Q3. Talk to you all soon.”

To instantly access the portfolio, complete our simple buyer application by clicking here.

If you are already a member, please visit our portfolio stratification page.

Last week, the Note School: Virtual Summer Summit hosted a panel where Bob Repass discussed NPL/RPL Secondary Markets with panelists Chaz Guinn, Cody Faller and Paul Birkett.

Bob Repass – “How have you been hit with forebarance plans, are you seeing any traction from your servicers being able to get some modifications or forbearance plans or are things pretty much cash flowing the way they have been over the last several months.”

Chaz Guinn – “With the 450 RPLs, 12 months or more, payments have been received to us on behalf of our servicer, we are at a 1% default rate in terms of borrowers wanting a forbearance. We have definitely seen 4 to 10, to 12, even higher in terms of requests. Many of the borrowers we’ve been been able to require over the next handful of years are making a $4oo-600 mortgage payment, its not a $1500-$2000 mortgage payment. With that being said that definitely is a certain percentage of their income. I will say if you look at the majority of our modifications and our active pay plans, the DTI is well below 50%. I’m not going to say that’s a direct cursor to default but I think we all know the more your mortgage balance or amount of income your assessing to your mortgage payment, the more that creeps above 50% we all know that eventually is going to get a default.”

Please CLICK HERE to watch the full discussion.