Fannie, Freddie Sells $22.2 Billion in Nonperforming Notes

From Housing Wire

Nonperforming notes sold by Fannie and Freddie first half of 2019

If you are wondering when the ideal time is to purchase notes for investment purposes, the answer is now. Fannie Mae and Freddie Mac sold $22.2 billion worth of nonperforming notes from their portfolios through the first half of 2019. 78,281 NPN’s were from Fannie Mae, 39,185 were from Freddie Mac, totaling 117,466 loans sold. Nearly half of these loans were located in New Jersey, New York and Florida. The loans also had an average delinquency of 3 years, and an average loan-to-value ratio of 92%.

Investing Nationally for Greater Selection

Time and time again we stress the importance of investing outside of your own backyard. If you live in any of the 47 states outside of New Jersey, New York or Florida, right now there is ample opportunity for investing nationally.

Ready to diversify your portfolio?

Our sales team is ready to assist you in growing your portfolio. By purchasing an asset we purchase in bulk directly from Fannie Mae, Freddie Mac, or other Top Tier 1 banks you can become the bank. Getting started is easy, simply fill out our NDA to begin growing your portfolio.

10 New Years Resolutions for Investors

The end of the year marks an important threshold. 2019 brought forth significant growth and success. While you should embrace the positive changes which took place during the past year, it is important to examine the flaws in our investment strategies. In what areas can you improve to maximize your returns and ultimately grow your investments?

Using the new year as a chance to make financial resolutions is an important factor to reevaluate your overall goals.

During 2020, consider these 10 New Years resolutions for investors, so you can get the most value for your money.

10 New Years Resolutions for Investors

1. Set a goal to diversify your portfolio

Many of our clients have all their eggs in one basket, the real estate industry. Maybe they have a handful of fix-and-flip properties that they are rehabbing and seeking to sell for a greater return in due time. The problem we see time and time again is when you have all your investments tied up with an unstable industry, you increase your chance of getting hit hard in the event of a recession or economic fall. By diversifying your portfolio you can start incorporating investments that potentially thrive in an economic decline. Note investors had some of the most profitable years during the 2008 recession as it is not necessarily dependent on a thriving economy. Note investing also provides higher ROI’s than traditional real estate investing AND less hands on involvement. Your portfolio will love you for making the switch.

2. Set a goal to reduce overhead expenses

Reducing the “middle-men” as part an investment purchase will reduce the unnecessary expenses and fees associated with that investment. A specific example is purchasing bank direct distressed mortgages. The further you are removed from the bank that originated the delinquent mortgage, essentially the higher the price point you will be paying for the note. The more is has been circulated around the marketplace means there are more companies that have their arms wrapped around the files. Being able to get yourself closest to the bank selling loans, delinquent loans, or even re-performing loans will allow you to capture a wholesale price point – or as close to a wholesale price point as possible. At Revolve Capital Group, we purchase bank direct distressed mortgages directly from Top Tier 1 banks and sell these same loans to our investors.

3. Set a goal to increase profitability

All investors have (or should have) a goal to increase their profits, because why else do we invest if not to grow our profits? We focus on key services that ultimately help our current and potential clients grow their portfolios. We offer bank direct assets acquired directly from Tier 1 Banks, provide access to national vendors so our investors can successfully manage their own nation-wide portfolios from the comfort fo their home/office, and include completed due diligence for each loan at no additional cost. While there are many firms you can invest with, the key services each company has to offer are what will increase your overall profitability.

4. Set a goal to establish a long-term strategy

The fact is, most investment categories offer few exit strategies which lacks diversity in crafting a detailed and strategic play. Investing in notes provides several exit-options so you can fine-tune a plan that fits your immediate, short-term and long-term goals. Are you seeking a passive income stream? Do you prefer quick capital growth? Would you like to circulate your investments? These are questions you can ask yourself to establish a goal and satisfy your investment criteria. When you purchase notes, you become the “bank”, and the sky is the limit because you do not have traditional or expected rules to follow allowing utilization of a creative personalized approach.

5. Set a goal to create a passive income streams

The majority of our clients were previously landlords. Like those clients, most landlords choose that income stream because of the monthly residual passive profits that trickle into the bank account. However, with those benefits also comes much risk. You are legally bound to providing a healthy living environment for your renters, you are required to have your property insured, you take the late-night phone calls that the water heater is broken, you communicate with the tenant as to why they were unable to pay utilities that month, you are on the hook for property taxes, etc. We prefer taking a much less hands-on approach, by choosing to act as the “lienlord” instead. Being a leinlord allows you to take on investments that you can own for the next 30 years while the homeowner continually makes payments, but all the property condition concerns fall on the shoulders of the homeowner. Because you are now “the bank” you can control the terms and interest rates, and by utilizing a national vendor you can remove yourself from the majority of those responsibilities and you can focus on your monthly passive income.

6. Set a goal to stop wasting time

Mark Cuban is a self made billionaire. If anybody knows the value of time, it’s him. Cuban himself stated “I can make things happen more quickly by paying a little bit more, and that’s important, because time is the one asset you can’t own, buy or get back.” Money can buy you anything, except time. It is the one thing you cannot buy. If you want to grow your investments, you need to stop wasting time on tasks you can delegate to firms and professionals. Simply put, having an extended nationwide network of vendors allows you to scale your business, increase your profit margin and become a more passive investor. It is beneficial to familiarize yourself with what roll the servicer plays in managing your assets, so you can feel comfortable focusing on other aspects of your business.

7. Set a goal to increase ROI

If you watch shows like Million Dollar Listing or Flip or Flop, you might notice investors paying .80 or .90 cents on the dollar for their investment properties, which comes with all the glitz and the glamour.
Instead, you could learn to purchase deals we are selling nationwide on a consistent basis for .50 or .60 cents on the dollar. For example, we just had a deal worth $140,000 and it’s on the market now for $90,000. That’s .60 cents on the dollar. Why would you go out and pay $120,000 or $130,000 for that exact same property?
Our question is… What is your ROI?

8. Set a goal to get educated

Any entrepreneur will tell you that knowledge is power. By educating yourself you can set yourself up for success and growth in any area you desire. To start educating yourself, look no further than our blog page. Our blogs are geared towards investors seeking extended education, and we consistently post to make sure you are as well informed as possible. Our aim is to stay up to speed on market trends that will be pivotal to continue expanding your portfolio. Another key factor in getting educated is by attending seminars. We frequently sponsor industry leading conferences that provide opportunity for continuing professional education. The next conference we will be speaking at is the IMN NPL Notes Servicing Forum, East in Fort Lauderdale, FL.

9. Set a goal to expand your social network

Typically a persons comfort level starts and ends with those they know and trust. A closed network limits our exposure to people who can offer new connections and ideas. A strong network supports and advocates for you, and allows you to maximize opportunity. By networking with other investors/vendors/firms you can earn trust and create a long-standing relationship. We understand how important these relationships are, and we offer key services that provide the foundation of a long term business partnership. Transparency, consistency of product, safe purchases, clean collateral and post-close asset management are all important building blocks for our client relationships. Each stage of the process, from product selection through post-close, we work with you every step of the way. By creating a long-term relationship, we ensure success for you and us both.

10. Set a goal to market your real estate investments

At the present time, it has never been easier to expand your reach allowing thousands, if not millions, of eyes to see your available inventory. Connect with new and willing buyers, increase exposure and market your properties by utilizing digital technologies. Announcing an investment opportunity for sale has never been easier than now thanks to the wonderful world of social media.

Make your New Years Resolutions Stick

It is said that in order to make a New Years resolution really stick, you need to keep your goals realistic. Fortunately for you, the same ecosystems we have in place for our company is offered to our investors which ensure the goals are realistic and completely doable. By incorporating the above 10 New Years resolutions for investors into your 2020 goals you can make it your most successful year yet.

2019 Year End Review

2019 was a year of breakthrough for Revolve Capital Group as a company. It allowed us to establish and grow stronger relationships with large sellers, buyers, and vendor network. We were able to bring consistency and reliability to the market.

We are aiming to re-shape the way investors grow their portfolios through fix-and-flips, rentals, auction homes, by building long-term wealth through residential real estate. We aim to introduce investors to a sophisticated and passive way they can step into the shoes of the bank… through, Note Investing.

In 2019, Revolve Capital Group has been able to:

  • Acquire over 16 different portfolios
  • Purchase over $40M in single family mortgages
  • Purchase over 500 homes
  • Offer trial payment plans or full loan modifications to over 250 families
  • Headline Sponsor at 3 National Conferences

In 2020, Revolve Capital Group expects to:

  • Open up our Trade Desk, and aiming to sell thousands of loans to our of clients (MONTHLY)
  • Acquire over 2,000 loans
  • Introduce REVOLVE+ to our Elite Members
  • Grow our investor/buyer base to over 5,000 qualified buyers
  • Introduce our Online Platform: Offering education, Transparency, Ease of use, All managed and controlled with a smart phone

Judicial vs. Non-Judicial States: What You Need to Know

When investigating note investment opportunities, it’s important that investors take the necessary time to understand the foreclosure process. Should a homeowner leave you with no option but to foreclose after failing to follow through with the agreed upon terms, you might decide it is necessary to begin the process of acquiring the deed.

The timescale to get that deed varies greatly between states. This is because there are principally two different methods for foreclosing on a homeowner; judicial and non-judicial. Each method has their own respective advantages and disadvantages, so let’s cover judicial vs. non-judicial states in a little more detail.

Judicial Foreclosure States

As the name suggests, foreclosures in judicial states have to proceed through the court system. The owner of the loan files a foreclosure lawsuit in court after which the homeowner receives a summons to court and a copy of the official complaint. At this point, the homeowner has two options; they can either let the foreclosure happen, or they can contest it in court.

If they contest the foreclosure there can be a lengthy wait to set up a court date for the hearing, at which point a judge will make a ruling, and if they agree to a sale, they’ll also set the date. If the foreclosure is uncontested, a default judgement will be made and a date set for the sale of the property. The property then goes up for auction and if no bid meets the asking price, then it is returned as a Real Estate Owned (REO) property back to the lender. Learn more about purchasing pre-auction homes here.

In non-judicial states, the process is slightly different.

Non-Judicial Foreclosure States

In non-judicial states, foreclosures are initiated by “trustees” (those who hold the deed of trust) in the event of a homeowner defaulting on their loan. Each individual state law determines each milestone in the foreclosure process, and stipulates how much notice the trustee must give the homeowner and in which manner the property can be sold.

Even after the lender issues a notice of default, the homeowner may still have up to three or four months to make up payments under the protection of state law. After that period, if the payments haven’t been made up, or a new payment plan fails to materialize, homeowners will receive a notice indicating the intention to sell the property. This notice will also usually specify the intended date of the sale.

A non-judicidal property auction does not have to be undertaken by an officer of the court, and so third-party sales agents are often enlisted to do so. Once again, if no one meets the minimum bid the property is returned back to the deed-holder (lender) and becomes a so-called “bank-owned” property.

Which Method is Better for Owners of Distressed Notes?

First and foremost, there is a clear time advantage for targeting notes in states that operate a non-judicial foreclosure process. Lenders who foreclosure in states such as Texas, Georgia or Tennessee can have the keys to a family-sized property for 40-50% of its market value in just 60 – 75 days. Therefore, as a dollars-in, dollars-out, investment non-judicial foreclosures are clearly preferable.

However, it’s not quite as simple as that. Lenders know this fact, and therefore may charge a premium on notes in non-judicial states. That same knowledge is reflected when it comes to notes sold in judicial states. Because proceeding through the court system can take several months, investors can pick up houses for as little as 30% of their market value to reflect the extra hoops that have to be jumped through.

But some judicial states are notoriously tough for lenders. For instance, in New York, it’s not uncommon for the foreclosure process to take upwards of two years. So whilst a $100,000 house sounds amazing for a sale price of $30,000, can you really afford to tie up your investment for at least two years? The answer will depend on your particular financial situation.

Achieve over 40% Returns with Distressed Notes Direct from The Banks

Whether you opt to focus on much higher returns achieved over a longer period, or prefer to achieve lower returns at a more frequent rate, we can offer you expert advice so that you maximize the potential of each and every distressed note you obtain from us. Our team has intimate knowledge of each state’s processes, making them ideally positioned to give you realistic timelines to deed acquisition.

Here at Revolve Capital Group, we cut out the middlemen. We take notes straight from the banks and present them directly to you, the investor. Our note investment opportunities are 100% transparent and we even provide you with the due diligence documents to make sure you are getting great value for your investment.

When it comes to judicial vs non-judicial states, it is a case of each to his own. But with our expertise and advice we can help you to align your financial goals with our product offerings. So if you are ready to achieve market-beating returns on your investments, don’t hesitate to contact a member of our team today to discuss note investment opportunities.

One Year Anniversary, First Year Totals and Highlights

One Year Anniversary

On behalf of Revolve Capital Group, we would like to thank our clients, friends, and colleagues in the industry for your continued support. This week marks the one year anniversary since the start of our company.

We are anticipating the ability to continue scaling our business with one another heading into our second year. We could not be here without each of our investors. Thank you for consistently choosing to invest with us.

Check out some of our first year totals and highlights below…

Revolve Capital Group: Year 1 Highlights
  • $42.1M Annual Cumulative Revenue
  • $27M Homes Under Management
  • Nearly 400 homes purchased
  • Projected to purchase 1000 total homes by 2020
  • Helped over 500 people avoid foreclosure
  • National sponsor of main corporate events
  • Re-stabilizing depreciating neighborhoods all over the country

We are excited and continue to be encouraged with our business together as we cross from year one into year two of Revolve Capital.

Are you a current client? If not, please Contact Us today to begin the easy process to become a trusted investor.

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How to Buy Notes and Getting Started with Revolve Capital

Easy Steps

One of the most frequently asked questions we receive is “How do I get started working with Revolve Capital?”

The answer, it’s simple.

To ensure our clients know what to expect, we have laid out the Easy Steps for you.. Our hands-on approach to investing allows us to work alongside our clients every step of the way.

6 Steps to Get Started
  1. Complete Our Buyer / Investor Application – Allowing our staff to properly understand your experience level, and tailor portfolios best to fit your overall objective. Click here to fill out the buyer/investor application.
  2. Reviewing the portfolio/Conducting Preliminary Due Diligence – We allow each party a few days to review the portfolio and conduct introductory due diligence. Desktop values, review of borrower intention, verification of all collateral is intact. View our available inventory by clicking here.
  3. Make an Offer – The offer needs to be supported with an LOI (Letter of Intent) to purchase along with a proof of funds to demonstrate the financial ability to close the trade.
  4. Conducting Due Diligence – Verification of all collateral documents, market values, title, and tax review.
  5. Finalize Offer / Prepare for Funding – Once diligence is complete, our staff will finalize the population with you and wrap up the trade inside an agreeable purchase and sale agreement. Funding will take place within 7 days from finalizing diligence, and funds will be wired directly to Revolve’s account without the use of an escrow or 3rd party.
  6. Closing / Document and Service Transfer – You will receive the original collateral file, assignment, and allonges (within 45 days of the purchase, if not sooner). You have the choice to keep servicing in place or transfer to the servicer of your choosing.

Getting Started is Simple. Contact us today to begin building your custom note portfolio with Revolve Capital Group.

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