Non-Performing Notes
Non-Performing Notes are very popular right now. A non-performing note is essentially a note that is in default, (and) for which the bank can no longer expect repayment against the original terms. What makes non-performing notes so attractive to a buyer is the opportunity to essentially purchase the asset at a deep discount. In this tight credit market, non-performing notes can be found for anywhere between 20% - 60% of the note value (and for as little as 30% of the outstanding balance.
Non-performing notes are priced so aggressively to sell because the bank has a wart (or blemish) on its balance sheet that is not only unproductive, but has not yet gone through the foreclosure process to wash out (or offset) all of the liens on the title.
There are over $150 billion worth of commercial real estate loans due by 2013 alone. Because of the consistent decrease in value of these commercial properties, it is estimated that the amount of loans due will stay above $100 billion over the next few years. The amount of commercial properties that are upside down in value also continue to climb. As a result, federal bank regulators, like the Office of Comptroller of the Currency (OCC), are concerned about the effect these increases will have on the financial stability of the institutions they supervise. Therefore, they are putting significant pressure on these banks to decrease the amount of non-performing real estate notes on their books.
This current situation has created the perfect storm of opportunity for both owners and buyers of distressed commercial real estate properties.
Our Investment Groups are aggressively buying Non-Performing Notes!
Our group of Investors are aggressively seeking to buy non-performing notes directly from these same banks who are aggressively seeking to rid them from their books! Once there is an accepted offer, these deals could close in 30 days or less!
*If you are a Principal that needs funding to buy Non-Performing or Performing Notes, please contact us for the documentation you need to get in position for possible funding.
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