Knowing The Note Market

The real estate market is among the most temperamental and capricious markets in existence. However, with a superior knowledge and an innate understanding of the industry you can trounce the unpredictability of the industry. Understanding and studying the note market will undoubtedly aid in your endeavors. It may seem challenging and slightly daunting, but you will reap monumental rewards if you put in the work. If you are interested in heightening your comprehension of the note investing industry, you have to know the note market itself.

Check out this short video on how you can really know the note market!

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To your success,

Video Notes:

  • The real estate market took a dive after the 2007- 2009 recession.
  • The fallout was millions of mortgages underwater.
  • Banks are not helping people out with their mortgages.
  • Banks are not in the business of real estate, they are in the business of loaning money and receiving payments.
  • The rust belt has an increased amount of distressed paper as a result of the recession
  • Federal programs are not working (H.A.M.P).
  • Midsized and regional banks are holding distressed paper.
  • These smaller banks need to get rid of them, are selling them to massive hedge funds.
  • Fanny May and Freddie Mac are selling their inventory of defaulted assets, averaging $15 billion in sales per year.
  • Because of new bank regulations, they have to sell bad paper.
  • Freddie and Fanny have $126 billion in defaulted mortgages.
  • Assets coming to the market appear to be moving towards a pace intended to not depress the market.
  • At the current pace it will take an additional 5-7 years to release the inventory currently on hand.