Momentum Madness

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Note Investing at the Big Dance

I’ve been trying to watch some of the NCAA March Madness Basketball tournament. While the first round didn’t produce many surprises, the second round certainly did. My Oregon Ducks won a game today they probably shouldn’t have won, but they pulled it off with a 3-point basket with under a minute left on the game clock. The only reason they won is that got that late burst of momentum that carried them from a deficit to the lead in the waning seconds. In fact, there is a point in all these games where a team faces a deficit and a period of adversity, but then a certain play happens and momentum shifts to their side. There is always the opportunity to allow disappointment get in the way of forging a win. The same thing exists in note investing.

Last week I talked about submitting bids on two assets that I had confidence that I would win those bids. I found out a few days later that my bids were just shy of the highest bid, buy just by a small margin. Losing those bids were disappointing, especially because I had a couple of investors ready to move on these assets. It’s like playing great defense and the shot clock winding down only to have your opponent swish a 3-point shot over your extended hand. The opportunity to drop my head and pout was there, but I had to get back in the game and make a play. So I did……………….

Not only is this a message about note investing, it’s a life lesson as well. Seems that whenever life pulls you down and you find yourself in a deficit, it’s up to you to pull yourself up by the laces and make a play. No one else is going to do that for you. Others will offer encouragement and throw you the ball, but it’s up to you to make the play.

We’ve got a few bids into some hedge funds, and it looks like more loans will soon become available. Right now I’m juggling three balls: servicing loans I’ve already purchased, completing due diligence and submitting bids, and positioning my business to be prepared for opportunities to come. Fannie Mae just sold 9,400 loans totaling $1.68 billion in unpaid principal balance. One of the successful bidders is a group I have access to.

Fannie Mae Announcement

Fannie Mae Announces Winners of its Latest Non-Performing Loan Sale

WASHINGTON, March 14, 2017 /PRNewswire/ — Fannie Mae (OTC Bulletin Board: FNMA) today announced the winning bidders for its ninth non-performing loan sale. The sale included approximately 9,400 loans totaling $1.68 billion in unpaid principal balance (UPB), divided among four pools. 

Momentum is building, opportunities are building, and I am ready. Are you ready to enter the game? Time is winding down on the first quarter. Have you checked your scoreboard? Your number is called. Time to check into the game.

The asset above is another bid I submitted this past week. The seller’s value vs. my value has a wide margin. However, because we are on the same team, with a goal of doing the right thing for the homeowner, I’m confident we’ll find a win-win solution. Momentum is on our side.

Thanks for reading. Let me know if you’d like to hear more. Oh, and, Go Ducks!!