What is a defaulted mortgage?
A defaulted mortgage LOAN is one that does not see payment in full of principal and interest.
What is a non-performing note?
A NOTE is a promissory note (the actual paper) signed by a borrower that includes the terms of the repayment of that debt. Including the loan term and the number and timing of payments, the interest rate and (if the loan is an adjustable rate loan) the index and margin for that rate, prepayment penalties, etc. If it is non-performing, the promissory note, or mortgage terms and agreement is not being met.
How do you make money when buying a mortgage that isn't paying?
After acquiring a non-performing note we step into the shoes of the bank. We can first attempt to work with the homeowner and modify the loan. We then collect their mortgage payments and interest for the remainder of their unpaid balance (UPB). If the homeowner has moved on from their home and simply wants to rid their debt, we ask for a Deed in Lieu of Foreclosure (DIL) which allows us to take title of the property and relieving the homeowner of any debt from the mortgage. If this is not an option, we foreclose on the property to take title. In the event we take title, we are able to collect the profits made from liquidating the property. Because we buy the non-performing notes around 35% - 60% of current market value (CMV) we have the potential to make a large profit from liquidation.
How do you determine what you invest in?
We complete our a due diligence on a potential investment factoring in area demographics, market stability, potential rents, value-add, and condition of the property in addition to other factors. If these criteria are met, we then determine the return on investment (ROI).
What is owner financing?
Owner financing, also known as seller financing is when the owner of the property holds financing. The seller creates a mortgage and note that outlines the specific requirements of payment just as a bank would.
Why use seller financing?
Our primary goal when investing is to get as much passive income as quickly as possible without deploying all of our money in an "all cash" purchase price. We use owner financing and creative terms to help us pay down the principal balance at a much faster rate than usual.
If I become a private investor with Seasoned Funding, LLC how do I know my money will be used properly and safely?
We use a third party service to hold any invesment monies in escrow, no money will be directly transfered to Seasoned Funding, LLC. Our attorney writes a first lien contract and/or deed that holds you, as the private investor, subject to the property or underlying note in the case of default. In addition, our private investors are secured by a personal guarantee.
I don't have cash on hand, but have money in my 401K and IRA. Can I invest using that?
Yes! Most people are unaware of the opportunity something called a "Self Directed IRA" (SDIRA), which is similar to a traditional IRA with the exception that you as the individual owner are allowed to choose and direct what investments you would like to pursue with your IRA such as real estate, gold, promissory notes, and even limited liability companies (LLC) or partnerships while receiving the traditional tax benefits such as tax deferment and even tax-free growth within your IRA. We often work with individuals in their Self Directed IRA's and are happy helping anyone who would be interested get more information or find out how to do this with us!
A defaulted mortgage LOAN is one that does not see payment in full of principal and interest.
What is a non-performing note?
A NOTE is a promissory note (the actual paper) signed by a borrower that includes the terms of the repayment of that debt. Including the loan term and the number and timing of payments, the interest rate and (if the loan is an adjustable rate loan) the index and margin for that rate, prepayment penalties, etc. If it is non-performing, the promissory note, or mortgage terms and agreement is not being met.
How do you make money when buying a mortgage that isn't paying?
After acquiring a non-performing note we step into the shoes of the bank. We can first attempt to work with the homeowner and modify the loan. We then collect their mortgage payments and interest for the remainder of their unpaid balance (UPB). If the homeowner has moved on from their home and simply wants to rid their debt, we ask for a Deed in Lieu of Foreclosure (DIL) which allows us to take title of the property and relieving the homeowner of any debt from the mortgage. If this is not an option, we foreclose on the property to take title. In the event we take title, we are able to collect the profits made from liquidating the property. Because we buy the non-performing notes around 35% - 60% of current market value (CMV) we have the potential to make a large profit from liquidation.
How do you determine what you invest in?
We complete our a due diligence on a potential investment factoring in area demographics, market stability, potential rents, value-add, and condition of the property in addition to other factors. If these criteria are met, we then determine the return on investment (ROI).
What is owner financing?
Owner financing, also known as seller financing is when the owner of the property holds financing. The seller creates a mortgage and note that outlines the specific requirements of payment just as a bank would.
Why use seller financing?
Our primary goal when investing is to get as much passive income as quickly as possible without deploying all of our money in an "all cash" purchase price. We use owner financing and creative terms to help us pay down the principal balance at a much faster rate than usual.
If I become a private investor with Seasoned Funding, LLC how do I know my money will be used properly and safely?
We use a third party service to hold any invesment monies in escrow, no money will be directly transfered to Seasoned Funding, LLC. Our attorney writes a first lien contract and/or deed that holds you, as the private investor, subject to the property or underlying note in the case of default. In addition, our private investors are secured by a personal guarantee.
I don't have cash on hand, but have money in my 401K and IRA. Can I invest using that?
Yes! Most people are unaware of the opportunity something called a "Self Directed IRA" (SDIRA), which is similar to a traditional IRA with the exception that you as the individual owner are allowed to choose and direct what investments you would like to pursue with your IRA such as real estate, gold, promissory notes, and even limited liability companies (LLC) or partnerships while receiving the traditional tax benefits such as tax deferment and even tax-free growth within your IRA. We often work with individuals in their Self Directed IRA's and are happy helping anyone who would be interested get more information or find out how to do this with us!