Category: Edu

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.”

January 16, 2020 by Chaz

From Housing Wire

Nonperforming notes sold by Fannie and Freddie first half of 2019

If you are wondering when the ideal time is to purchase notes for investment purposes, the answer is now. Fannie Mae and Freddie Mac sold $22.2 billion worth of nonperforming notes from their portfolios through the first half of 2019. 78,281 NPN’s were from Fannie Mae, 39,185 were from Freddie Mac, totaling 117,466 loans sold. Nearly half of these loans were located in New Jersey, New York and Florida. The loans also had an average delinquency of 3 years, and an average loan-to-value ratio of 92%.

Investing Nationally for Greater Selection

Time and time again we stress the importance of investing outside of your own backyard. If you live in any of the 47 states outside of New Jersey, New York or Florida, right now there is ample opportunity for investing nationally.

Ready to diversify your portfolio?

Our sales team is ready to assist you in growing your portfolio. By purchasing an asset we purchase in bulk directly from Fannie Mae, Freddie Mac, or other Top Tier 1 banks you can become the bank. Getting started is easy, simply fill out our NDA to begin growing your portfolio.

December 19, 2019 by Chaz

When investigating note investment opportunities, it’s important that investors take the necessary time to understand the foreclosure process. Should a homeowner leave you with no option but to foreclose after failing to follow through with the agreed upon terms, you might decide it is necessary to begin the process of acquiring the deed.

The timescale to get that deed varies greatly between states. This is because there are principally two different methods for foreclosing on a homeowner; judicial and non-judicial. Each method has their own respective advantages and disadvantages, so let’s cover judicial vs. non-judicial states in a little more detail.

Judicial Foreclosure States

As the name suggests, foreclosures in judicial states have to proceed through the court system. The owner of the loan files a foreclosure lawsuit in court after which the homeowner receives a summons to court and a copy of the official complaint. At this point, the homeowner has two options; they can either let the foreclosure happen, or they can contest it in court.

If they contest the foreclosure there can be a lengthy wait to set up a court date for the hearing, at which point a judge will make a ruling, and if they agree to a sale, they’ll also set the date. If the foreclosure is uncontested, a default judgement will be made and a date set for the sale of the property. The property then goes up for auction and if no bid meets the asking price, then it is returned as a Real Estate Owned (REO) property back to the lender. Learn more about purchasing pre-auction homes here.

In non-judicial states, the process is slightly different.

Non-Judicial Foreclosure States

In non-judicial states, foreclosures are initiated by “trustees” (those who hold the deed of trust) in the event of a homeowner defaulting on their loan. Each individual state law determines each milestone in the foreclosure process, and stipulates how much notice the trustee must give the homeowner and in which manner the property can be sold.

Even after the lender issues a notice of default, the homeowner may still have up to three or four months to make up payments under the protection of state law. After that period, if the payments haven’t been made up, or a new payment plan fails to materialize, homeowners will receive a notice indicating the intention to sell the property. This notice will also usually specify the intended date of the sale.

A non-judicidal property auction does not have to be undertaken by an officer of the court, and so third-party sales agents are often enlisted to do so. Once again, if no one meets the minimum bid the property is returned back to the deed-holder (lender) and becomes a so-called “bank-owned” property.

Which Method is Better for Owners of Distressed Notes?

First and foremost, there is a clear time advantage for targeting notes in states that operate a non-judicial foreclosure process. Lenders who foreclosure in states such as Texas, Georgia or Tennessee can have the keys to a family-sized property for 40-50% of its market value in just 60 – 75 days. Therefore, as a dollars-in, dollars-out, investment non-judicial foreclosures are clearly preferable.

However, it’s not quite as simple as that. Lenders know this fact, and therefore may charge a premium on notes in non-judicial states. That same knowledge is reflected when it comes to notes sold in judicial states. Because proceeding through the court system can take several months, investors can pick up houses for as little as 30% of their market value to reflect the extra hoops that have to be jumped through.

But some judicial states are notoriously tough for lenders. For instance, in New York, it’s not uncommon for the foreclosure process to take upwards of two years. So whilst a $100,000 house sounds amazing for a sale price of $30,000, can you really afford to tie up your investment for at least two years? The answer will depend on your particular financial situation.

Achieve over 40% Returns with Distressed Notes Direct from The Banks

Whether you opt to focus on much higher returns achieved over a longer period, or prefer to achieve lower returns at a more frequent rate, we can offer you expert advice so that you maximize the potential of each and every distressed note you obtain from us. Our team has intimate knowledge of each state’s processes, making them ideally positioned to give you realistic timelines to deed acquisition.

Here at Revolve Capital Group, we cut out the middlemen. We take notes straight from the banks and present them directly to you, the investor. Our note investment opportunities are 100% transparent and we even provide you with the due diligence documents to make sure you are getting great value for your investment.

When it comes to judicial vs non-judicial states, it is a case of each to his own. But with our expertise and advice we can help you to align your financial goals with our product offerings. So if you are ready to achieve market-beating returns on your investments, don’t hesitate to contact a member of our team today to discuss note investment opportunities.