Thoughts from the desk of Bob Repass…
Recently, Eddie and I were talking with a potential capital investor about the unique market opportunity we are seeing in the small balance asset space. We feel there are an extraordinary amount of “value” buys in both performing and non-performing loans. As a result, we are ramping up our acquisition efforts to take advantage of these opportunities.
The discussion then turned to the impact this market condition is having on the individual real estate note investor. We determined there are three factors that drive an individual investor when looking to purchase notes: sourcing the assets, managing the assets, and overcoming any investing obstacles.
At the upcoming NoteExpo being held November 7 – 8 in Dallas, Texas, these three factors will drive the content of our sessions. We will have speakers, panel discussions, and workshops from top industry experts addressing how investors can best navigate their way in today’s market.
Don’t miss out on your chance to be a part of this cutting-edge industry event. Register today. See you in Dallas!
Seller Finance Coalition Applauds Introduction of Regulation-Reducing Legislation
The Seller Financing Regulation Reduction Act would reduce regulatory burden on seller finance industry:
The Seller Finance Coalition (SFC) today praised the introduction of the Seller Financing Regulation Reduction Act in the U.S. House of Representatives by Representative Roger Williams (R-TX-25). This legislation is aimed at addressing the unnecessary and overly-burdensome federal regulations that threaten the survival of the seller finance industry.
H.R. 5667 would relieve seller financers from the unintended consequences stemming from both the Secure and Fair Enforcement for Licensing (SAFE) Act and the Wall Street Reform and Consumer Protection (Dodd-Frank) Act.
“I commend Congressmen Williams for his efforts on behalf of the seller finance community,” said Glenn Lee, President of Texas Funding and a founding member of the SFC. “Introduction of this bill is a landmark moment in the defense of our industry,” added Lee, “which has been under attack in Washington, D. C., for the past six years.”
“We did not receive any government bailouts, yet we have been caught up in the sweeping legislation aimed at the large banks,” insisted Bob Repass, Managing Director of Colonial Funding Group and a founding SFC member. “The Seller Financing Regulation Reduction Act will ensure that these regulations impact those we all were told they would rather than the small businesses like us that have never been part of the problem,” Repass reflected.
For generations, seller financing has been a preferred form of financing for low-income homeowner transactions and has allowed thousands of individuals who would not otherwise be able to own their own home the opportunity to settle down and become homeowners. The seller can be a private individual, a small company, or a group of investors who function as a direct lender, financing the sale of property or goods. Many of the homebuyers who are attracted to seller financed homes are lower income buyers: buyers who would not otherwise be able to find loans in the housing markets in which they hope to raise their families.
“The seller finance community has desperately needed legislative corrections,” said Scot Campbell of SR Campbell Properties and a founding SFC member. “The Williams legislation,” Campbell continued, “will exclude seller-financing transactions from these regulations.”
The Seller Financing Regulation Reduction Act would simply exempt seller financers from mortgage licensing and debt to income ratios as passed under the SAFE Act and Dodd-Frank.
Gladys Margarita Diaz of Sassi Property Group and a founding SFC member added that, “Congressman Williams should be commended for not only understanding and recognizing the threat that these regulations pose to our industry, but doing something about it.”
The Seller Finance Coalition was formed in February of 2014 to advance the interest of the Seller Finance industry. Our companies specialize in the creation and acquisition of mortgage notes and investment in all types of real estate. They purchase performing, sub-performing, and non-performing mortgage notes. Individuals, institutions, and companies of all types and sizes seeking liquidity, appreciate our ability to act and fund quickly. Our ability to provide our services leads to many real estate related projects being completed and accounts for the creation and maintenance of countless jobs.
You can find out more details on the SFC at www.sellerfinancecoalition.org or drop by our booth at our upcoming NoteExpo November 7 – 8 in Dallas. You can also follow us on Twitter @SFCdotORG and like us on Facebook.
The Trading Corner
Calling All Investors
By Martha Speed
Did you know that Colonial Funding Group has opportunities available to ALL investors whether or not they have trained with NoteSchool!
At Colonial Funding Group, we have been in the trenches with hedge funds, banks, and loan servicers for over 30 years. We have both the experience and the connections to bring you actual Real Estate Secured Note deals you can buy individually or in bulk.
Not only can you buy notes directly from us, we’ve even got a truly passive private equity fund that requires ZERO involvement on your part to reap the rewards of the current market opportunity in both non-performing and performing notes.
Join us for a no-fluff webinar this week and finally understand where the deals are that you need to make your real estate investing model work right now.
We will explain on the webinar how you could be buying notes by this time next week!
This webinar is solely designed to introduce you to new ways to deploy your capital to create cash flow and/or build-up equity. No Sales Pitch.
What if your current sources dry up, stop selling to you, or raise their prices? It’s time to get set up as a registered Colonial Asset Buyer. Find out how on the webinar.
See the Case Study of the Month below for an Example of a Note You Can Own Today.
I can be reached via email MarthaS@ColonialFundingGroup.com or call 800-969-1200 x117. Let Colonial help you build a solid note portfolio!
Attend Note Expo to learn more about today’s market changes and how you should invest…
Performing Asset for Sale
Condominium Owner Occupied
|Original Loan Amount||$37,852.17|
|Monthly P&I Payment||$400.00|
|Monthly T&I Payment||$65.00|
|Date of Last Payment||9/4/14|
|Date of Next Payment||10/1/14|
|Current BPO Value||$40,000|
|Current BPO Date||7/29/14|
|Available for Purchase at||$30,408.16|
|Yield to Investor||12.0%|
|Investment to Value||76.0%|
Top Ten with Matt Edwards
There are many people behind the scenes who drive the engine to make our companies successful. In our ongoing Top Ten series, this month we turn the spotlight on one of these people so you can get to know them better. This month the spotlight is on Matt Edwards, Due Diligence Coordinator. By the way, Matt is also married to Emily, the beautiful daughter of Eddie and Martha.
How long have you been with Colonial Funding Group/NoteSchool?
Just over a year.
What is your role at Colonial Funding Group/NoteSchool?
Due Diligence Coordinator; I work on the Due Diligence for pools and find Case Studies for the weekly mentoring calls.
Mother’s recipe for Red Beans and Rice and Pecan Pie.
Favorite TV Show?
Right now it’s The Good Wife.
Favorite Movie of all-time?
20,000 Leagues Under the Sea (1954).
Last Book You Read?
EXODUS: How Migration Is Changing Our World by Paul Collier.
Favorite Sports Team?
Boise State Broncos, Atlanta Braves and WHO DAT!!!
The 3 people you would like to have dinner with (dead or alive)?
Socrates, Martin Luther King Jr., Family.
What do you like best about working at Colonial Funding Group/NoteSchool?
- The diversity in what I do
- Being able to work in a business that teaches me so much
- Being able to work from wherever I am
- The close family ties I feel from everyone at CFG/NoteSchool
- My Bosses
Quote of the Month
“An investment in knowledge pays the best interest.” – Benjamin Franklin