Ep. 116: Finding and Buying Second Mortgage Loans with Daphne Wilson

Mortgage note investing is one of the more intriguing passive real estate strategies for investors.  Daphne Wilson is a pro at finding and buying second mortgage loans. She’s devised a strategy that allows her to buy for pennies on the dollar and create a win-win situation for borrowers. She is the founder of Bell Financial and on this episode, she shares her strategies to find and buy notes and get a delinquent borrower current on their payments.

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Key Market Insights

• Mortgage note investing is real estate without property management
• Homeowner pays the investor instead of the bank
• Notes are available through note exchanges, note brokers, and organizations
• Where to find notes to purchase: LoanMLS and ExchangeLoans
• First position loans are senior liens
• Second position loans are junior liens, usually less than the senior loan
• Buys second mortgages, these are typically for home renovation loans
• Spends $2,000 to $8,000 per asset
• Unpaid principal of $25-$60k for non-performing notes
• Banks would rather have bad loans off their books than try to collect the full amount owed
• Strategy: Buys delinquent 2nd mortgage behind a current 1st mortgage
• To get borrowers current on their mortgage, create a solution about the borrower
• Use the arrears to create leverage
• Spend 4-5 hours per month on note investing business
• When purchasing a non-performing asset, you build a relationship
• Arrears are the amounts that have accumulated because of missed payments
• The 2008 market correction fueled the second mortgage investing space

We’re going to jump right into the bullseye round, right after this quick word from our partner.

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Bull’s Eye Tips:

Winning Your Market: Engaging with other investors

Tracking Market Changes: Reaching out and interacting

Daily Habit: Meditation

Resources:

LoanMLS.com

ExchangeLoans.com

Digital Resources:

Note Dashboard

Tweet This:

“In 4 years I have never had to foreclose on a buyer”

Places to Grab a Bite:

West Palm Beach – Darbster

Connect with Daphne:

Instagram: daphnerwilson

Website: Mortgagenoteinvesting.info

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