Why Seconds

Buying second mortgages allows you to create more diversity.

Fuquan made a bid on a pool that was $12Million debt, it had 580 loans, with an average UPB of $40,000. There’s a possibility that some of those fall out and he won’t be able to collect on them, some of them may have collateral issues, and he may lose money on some of them – it’s a numbers game.

The key things to look at are the things that you can recapitalize on the resell, how many homeowners you can help stay in-house, and which assets can generate some cashflow.

nngcapitalfund.com

#noteinvesting secondmortgages #diversify