We provide liquidity for assets –
Whether your organization is in need of cash liquidity, your business model is to convert a non-performing loan to a re-performing loan, or you are simply willing to steeply discount these toxic assets to get them off their books; we can provide the capital.
In order to maintain a sufficient pool of capital such that they can continue making loans, mortgage banks, hard money lenders, and private lenders, which do not take deposits companies but offer greater program and rate flexibility, “sell off” borrower’s mortgages to another institution—often Fannie or Freddie, but also to pension funds, private investors, hedge funds, private equity firms, insurance companies, or securities dealers.
A mortgage has one of two paths it can follow once it enters the secondary market. It can be sold by a lender into one of Freddie, Fannie, or another financial institution’s investment portfolios for cash, or it can be pooled with other mortgages in exchange for Mortgage-Backed Securities (MBS). MBS are very liquid investments that are traded on Wall Street through securities dealers, which means that lenders can easily hold or sell them. In turn, these transactions provide capital that can be loaned out to other borrowers.
As both a lender and broker, we are constantly in contact with other lenders that are looking at increasing their capacity to originate more loans, and fund managers that are ready to turnover their notes for capital or want to remove legacy assets off of their balance sheets. In lieu, we have partnered with investors that are all looking for yield and utilize the capital to purchase paper assets, including Mortgage Notes, Contract for Deeds, Trust Deeds.
We typically look for the following assets:
- Performing and Non-Performing Residential Notes/Trust Deeds
- Performing and Non-Performing Commercial Notes
- Current and Defaulted Contract for Deed/Land Contract Notes
- Defaulted 2nd mortgage Loans & HELOC’s
- Commercial and Industrial delinquencies