STRATEGY
BECOME THE BANK
Become the Bank TM
Content provided by Ray Urrutia, President & CEO, Pull the Trigger Enterprises, LTD
T
he next step in the non-per- forming note (NPN) process
of debt. The NPN is the nucleus of real estate investing, Become the Bank™ is the Road to Wealth. eValuation 360°© Process:
to manage the investing process, but it takes time, due diligence, building relationships, and gather- ing a team. Next Step The implementation of the Model of 10™ as previously published is the post-side of the note purchase; now the ROI begins. The non-performing note is the nucleus for all real estate invest- ing in distressed product and es- sentially is the beginning process to all distressed properties. As the investor, you become self-suffi- cient in creating other real estate models, all the while building long-term wealth. •
is to evaluate before buying: The eValuation 360°©Process of NPNs is the process prior to paying for the Note. It begins working with a reliable source of NPNs: servicer, small bank, and/or NPN wholesal- er. Decide your buying criteria UPB (unpaid balance). As an example, if the UPB is $100,000, what is your buy rate 10%, 20%, 50% discount? What type of loan should you con- sider? A conventional mortgage, CFD (contract for deed) VA, FHA, or HECM (Reverse Mortgage). The interest rate is also consideration of buying; it is part of the six steps in getting the Note re-performing. The last and most important consider- ation is your objective once the note is purchased. Do you get the note re-performing, foreclose, or deed- in-lieu? This established objective will structure the above options. Whether it is 1 or 101, the eval- uation process is the same, even if you are looking at buying any kind
Source
· Servicer · Note wholesaler · Regional or local bank
Establish Buying Criteria
Objective Once Purchased · Re-perform · Deed-in-lieu · Foreclose Purchase Model · UPB (unpaid balance) · Market Value
Ray Urrutia is the founder President-CEO of Pull the Trigger Enterprises, Author of Pull the Trigger “Critical Thinking Skills for Real Estate Investors.” He has been in business for 40-plus years. Sales and Marketing, Technology and Networking are his areas of strengths coupled with problem solving. He has been in Real Estate for the last 20 years and started his own REI. (NOTE: Ray Urrutia is not a lawyer or accountant.)
Interest Rate
Loan Type
In the non-performing note in- dustry, the investor has the ability
46 | think realty magazine :: november / december 2019
thinkrealty . com | 47
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