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Why Distressed Mortgage Notes

I saw a huge opportunity in distressed mortgage notes over more than a decade ago before we actually had the crash of 2008. What I began to see very clearly was that a property can be acquired through its actual debt obligation. It seems really simple to understand in one aspect, and in another aspect, it seemed totally impossible.

When a property is reclaimed by a bank, that property is foreclosed on, and the bank recovers the property. Well, how can an average company reclaim a property that it does not own or have access to? That seemed like, to me, an impossible feat, until I understood that I could do so by being the bank. Well, how could I become, quote-unquote, “the bank”? Well, I would have to buy the actual mortgage from the bank. Would a bank even sell me a mortgage? What would I have to do to qualify for a bank to sell me a mortgage? Which banks sell mortgages? Why do banks sell mortgages? All of these were questions that were floating through my mind.

Through a lot of study and research, I was able to finally position my company to purchase mortgages from banks. Then once that was achieved, I figured out how to purchase the mortgages, access the properties and all of the many different exit strategies for making capital and making profits from these actual distressed assets.

We also looked at how can we be a benefit to homeowners? How can we help homeowners stay in their homes longer and keep the homes in their families so that the homes were not lost and that these homes could continue to be part of the family’s legacy? This was extremely important to us. We began to develop proprietary systems for allowing other investors to invest alongside of us to be able to get great returns on their money while assisting us and helping people keep their homes and keep homes in their families.

 We have a five-step process for increasing profits to our investors. One: We could resell the note to another investor for a profit. Two: We could offer the homeowner a deed in lieu of foreclosure and allow the homeowner to return the property to us. Three: We could offer the homeowner a short sale and allow the homeowner to be absolved from the debt at a discount. Four: We could offer the homeowner a refinance option or a loan modification option to make payments more feasible for the homeowner. Five: We could foreclose on the property and retrieve the property from the homeowner. Foreclosure, though, was always our least favorite and our last option, but with this five-step process, or these five options that we offer, these options allow us to have huge returns for our investors, and it provides a variety of solutions for the actual homeowner.

This was our mission to give and be flexible with not only our investors and our profit spreads, but also with our homeowners, knowing that we were going to do whatever we could do to ensure that they were taken care of. For us, we saw this as a win-win-win for all parties involved. That is the mission of Legacy Builders Fund is to create win-win-win opportunities for all that is involved. It’s our mission to continue to help homeowners and investors alike. We’re looking to rebuild communities, to rebuild America, to continue to deal with this debt crisis in our country, and we’re always seeking investors to help us and our mission.