How are significant returns provided to investors? When we purchase a distressed mortgage, that mortgage has a face value. That face value could be $200,000 but the bank may sell us that mortgage for $75,000. When we purchase that mortgage for $75,000 it is significantly lower than the actual face value of the mortgage note itself. That gives us tremendous leveraging power, to reduce the homeowner’s payments, to offer them a variety of options to make payments to us and to get back on track. But it also allows us to resell the mortgage at a higher price for a larger profit and here is the key in a very short period of time.
So in that short period of time we can make significant amounts of money and we can do this over and over again. That will increase profits for our investors. If in the unlikely event that we need to reclaim a property, we know based on our proprietary system, our numbers and our metrics that we have acquired the property at such a deep discount that we can always put it on the market and make a profit.
So this is our mission, again is to create significant returns for our investors. We are connected with more than 200 of the top hedge funds that invest in distressed mortgages. So as soon as we make a purchase of distressed mortgages, we can immediately resell those mortgages to other investment funds that are looking to invest in products, even if we are only making a small portion of profit because we do it quickly over and over and over again, it translates into huge and enormous profits for our investors. Meanwhile, it gives us a vehicle and a platform to help a lot of homeowners all at once. And we can do this in days or weeks instead of months. We tend to invest from the East Coast to the Midwest because these are the areas where we tend to find the best deals. We avoid states that have long foreclosure times such as the North Eastern quadrant of the United States, and we avoid the West Coast where product can be extremely high. But we search for deals nationwide. If something looks like a deal and we can quickly get in and get out, then we will, no matter where it is. Our mission is to make profits quickly, which in turn will leave profits on the table for buyers and equity in homes for the homeowner. We are always looking for win, win, win solutions.