Are non-performing notes the new foreclosure?

Last week, it was revealed that Colony, Blackstone Group, Cerberus Capital and Johnson Capital would move into real estate lending. A number of such players are offering equity-based loans for acquiring non-performing notes. They are essentially notes that is in default and can no longer expect repayment against the original terms of the note. They can be bought cheaply, with the investor deciding to re-work the note or take back the property. 

“The U.S. banks are not foreclosing on properties but selling these non-performing notes to hedge funds,” says Eddie Speed, CEO of NoteSchool. With fewer distressed properties on the market for investors to buy, they need to acquire these notes from hedge funds to get the best value in the market.”

Over 500 U.S. banks together sold nearly $3 billion in nonaccrual loans in the first quarter of 2013, according to media reports.

Speed is hosting a workshop at the forthcoming Vancouver Investor Forum (October 5-6) to show how Canadians can get their hands on these non-performing notes. “There are no barriers for Canadian buyers to acquire these notes. We will show how buyers can get these notes of the hedge funds, how to manage them and how to get the best return, which can vary between seven and 11 per cent.”

This workshop is one of the new features of this year’s one-day Investor Forum Vancouver. Acclaimed author Julie Broad and Dave Peniuk, co-founder of real estate investing website, will host the second workshop entitled “Cashing in on conversations: How to raise money for real estate with simple conversations.”


To book your spot for Investor Forum Vancouver, click HERE.

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