IMN Opportunity Zones Forum (West)

IMN Opportunity Zones Forums (West)

In September, Revolve Capital Group sponsored and spoke on a panel for the IMN Chicago Opportunity Zones regarding topics surrounding the Tax Cuts and Jobs Act of 2017.

To learn more specifically about what are opportunity zones, who can invest in these areas, how investors can benefit from diversifying their portfolios, and the drawbacks that are important to know before pursuing these investments, visit our Opportunity Zones blog post.

In a couple weeks IMN is taking their conference to the West Coast, offering another chance for investors to come together and learn these new investment opportunities.

“IMN is pleased to announce our Opportunity Zones Forum (West), November 12, 2019 in Los Angeles, CA.

Following our sold out inaugural event earlier this year in New York City, and leaning into our longstanding expertise in providing best-in-class learning and networking conferences for the real estate community, we’re excited to bring this event to senior developers, investors, and tax & accounting specialists across the West Coast.

The one day conference features a keynote address from Director of Economic Policy in the Los Angeles Mayors’ Office, Ron Frierson, and will provide a critical update on IRS guidance, demystify investment operations and processes, delve into optimal fund structures and partnership models, and much more. It will also provide a platform for attendees to develop and strengthen relationships, discuss new investment opportunities and share stories of success from opportunity zones across the country.”

What You Can Expect to Learn

  • Commercial Real Estate Developers
  • Real Estate Private Equity Firms
  • Institutional Investors
  • Family Offices & High Net Worth Individuals
  • Registered Investment Advisers (RIAs)
  • Fund Administrators
  • Law/Accounting/Consulting Firms
  • Federal, State and Local Government Entities

To purchase your tickets, please visit the IMN’s registration page by clicking here.

Recent Federal Rate Cuts, and What This Means for the Housing Industry

Recent Federal Rate Cuts

After interest rates rose a total of 9 times since December of 2015, the Federal Reserve made the decision to cut rates 25 basis points again in September. This represents a downward trend as the last Federal rate was cut a quarter of one percent in July, just two months ago.

Climbing interest rates are a positive for the banking industry and those with money invested tied to interest-bearing accounts; however, as the rates fall anxious investors can look to the distressed real estate market for some active investment opportunities.

While back-to-back quarter pointcuts in themselves do not indicate a true economic recession, the signs are currently in place for an economic slowdown and a possible recession if the trends continue. Many traditional real estate investors still have the bad taste of 2008 in their portfolios when the housing market and economy went crashing downward. Many homes went into foreclosure, workers were laid off and wages were reduced. Few sectors were left standing where savvy investors could still actively see profits steadily increase, one such market was the distressed note industry when 2008 was one of the most profitable years for most note investors.

Housing Industry Trends

If the economy slows and wages become stagnant or even decrease, delinquency rates on mortgage loans will inevitably increase. It is likely that financial institutions, ranging anywhere from smaller credit unions to large Top-Tier banks, will look to increase the quality of their holding by getting rid of some of these underperforming notes. With the writing on the wall of another Federal rate cut, some estimate that over the course of the next 12-18 months, many financial institutions will look to sell off these lesser performing notes.

Recession Investment Opportunities in Distressed Real Estate Industry

In the downturn of the housing market in 2007-2008, the investors that took advantage of distressed real estate investment opportunities often did well, while traditional real estate investing took the biggest hit. By holding onto distressed notes, investors can typically expect neither time nor financial investment in the upkeep of physical property by taking a less hands-on involvement. If a recession occurs, supply is expected to increase. Following the recession, during an economic expansion the value of notes (even lower-value notes) are expected to increase in value.

While every investment opportunity incurs some level of risk, the acquisition/management/sale of underperforming loans is generally a less-risky opportunity, especially in the event of a recession. By purchasing a real estate note and choosing to work with the homeowner, you can even assist the borrower with staying in their home by renegotiating their terms, which will avoid displacing families and ultimately help those same families avoid foreclosure.

As we see fluctuations in the housing industry and the continued Federal rate cuts, there is a likelihood of subsequent increases in delinquent loans. Investors who focus on purchasing underperforming bank notes historically can strategize by “riding out” the wave of the changing economy and expand their investment portfolios. Continue to look for distressed inventory releasing from banks and credit unions to forecast a possible upcoming recession.

Housing Trends and the Possibility of a 2020 Recession

Are Housing Trends Showing Signs of Upcoming 2020 Recession?

Real estate professionals everywhere are warning of our economy heading towards a recession in 2020. Now there might be some housing trends to back up the claims.

 

Delinquent Mortgages

An area that has not received enough attention, according to Keith Jurow, is the “growing problem of re-defaults on (US home mortgage) modifications.” While 8.7 million permanent modifications were made since 2007, there is a reported 17 million temporary modifications made (according to the non-profit Hope Now consortium).

Even with the modifications, slightly more than half of the borrowers either re-defaulted or continued to remain delinquent according to the OCC.

The Market Watch also shows a graph provided by the Fitch report showing the Cumulative Default Rate by Number of Modifications. The housing trends show that two or even three plus modifications provide a spike in re-default rates.

Miami Housing Trends

Shifting focus to specific cities, the recent housing trends in Miami are also showing evidence of a possible collapse. Harris Kupperman (Moguldom.com) claims the prices South Beach are down 20-35% from peak prices. He continues explaining that the turn a profit on a rental is “mathematically impossible”, and “the only way owning is viable, is if prices go up and allow you to extract capital to fund the carrying costs – though debt service then makes the monthly cash flow much worse.” Kupperman warns that Miami has traditionally been a leader in the national market trends, meaning the national real estate market may be headed towards a similar pattern in the next year. We can compare patterns of the 2008 recession vs a possible 2020 recession.

 

Manhattan Housing Trends

A new report claims the “prices in Manhattan real estate took their biggest plunge since the 2008 financial crisis (Robert Frank, cnbc.com). The Douglas Elliman Q3 Report found average sales prices decreased 14.1%. Houses are still being sold, however the prices homebuyers will most likely receive at this time fall short of what the prices once were when they got their home for in 2014. There is an increasing number of luxury listings on the market, but a decreasing number of property values.

 

Foreseeing Economic Activity

Analyzing market trends in the housing industry can traditionally foresee economic activity. When times are good housing demand is high and prices rise, but when times are bad there is a surplus in property listings followed by low-bid offers on homes. What are your thoughts on a the timeline on when/if our country will enter a 2020 recession?

 

NoteExpo 2019

NoteExpo 2019

Do not miss out… the next major industry-related event us coming up.

The NoteExpo 2019 will take place in North Dallas, Texas, November 1-2, 2019.

“Distressed debt is the hottest niche in real estate investing. And NoteExpo has one goal…to help you capitalize on it now while the opportunity is at its peak.

The first annual NoteExpo was launched to fill a void in the Note Industry. Even though note investing events have proliferated over the past few years, we hear from our clients that they want one big event that combines education, networking, a vendor exhibition area of the highest quality, and they want it to be run as professionally as you run your business, including a premium venue, sessions that start and stop on time, and an atmosphere where guests aren’t subjected to nonstop sales pitches.” To view the agenda please click here.

What You Can Expect to Learn

  • To capitalize on the boom in distressed assets.
  • Higher yield on their capital.
  • Greater security.
  • Less risk.
  • Additional passive income streams.
  • Vital connections to a community of like-minded, successful entrepreneurs & investors.

To purchase your tickets, please visit the NoteExpo’s registration page by clicking here.

Opportunity Zones | What You Need to Know

Last week Revolve Capital attended the IMN Opportunity Zones (Midwest) in Chicago.

The conference discussed Opportunity Zones surrounding the Tax Cuts and Jobs Act of 2017. Opportunistic zone areas include neighborhoods infected by factors such as distressed mortgages, lost jobs or boarded up neighborhoods. By building in these areas, investors can actually retain their capital gains tax instead of paying it to the government. What exactly are opportunity zones, who can invest in them and how can you benefit from these incentives?

What are opportunity zones?

According to the IRS, the Tax Cuts and Jobs Act (TCJA) is a “Major tax legislation that will affect individuals, businesses, tax exempt and government entities”. The Act added the IRS Code of 1986, which essentially effects multiple major taxed sectors: individuals, estates, business taxation, corporate tax, churches and nonprofit organizations, distressed communities, and more.

Opportunity Zones are defined as “economically-distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment”. These qualified zones were “created by the 2017 Tax Cuts and Jobs Act. Designed to spur economic development and job creation in distressed communities throughout the countries, they provide tax benefits to investors who invest eligible capital into these communities.”

Who can invest into these zones?

These opportunity zones are open to every private investor that has the sophistication and wherewithal, who knows how to structure their fund based on the rules and limitations of the Jobs Act, and who would like to tap into the opportunity zone revenue dollars and concurrently defer capital gains taxes. Historically, these types of opportunities were sometimes available only to accredited investors (typically requiring a net worth of $250-500K+) to invest in these projects. The Qualified Opportunity Zones program can be utilized by investors on any end of the spectrum… whether you are a private investor, a small investor, a new investor or a larger seasoned investor, you can benefit from the advantages of building in these areas.

Note, there are special reporting requirements. Reporting ensures the restabilization of the distressed area is being pursued.

How can investors benefit from these types of investing opportunities?

If you are interested in diversification into other asset classes or are already diversified, then investing in opportunity zones might be a revenue stream you should explore. Sectors such as commercial, strip malls, communities, hotels, gas stations, land, homes, etc. can take part in building in the distressed zones. By looking for ways to invest dollars to A) avoid capital gains taxing and interest from the IRS to be retained into your projects; and B) seeking to find a way to help revitalize these opportunities (by purchasing acres for housing development, revamping strip malls, creating gas stations and hospitals, etc.) you can play a part in this economic development tool. Revolve Capital Group has product (both non-performing and re-performing loans) located across the nation, many assets being directly located in these areas of opportunity.

By utilizing alternative asset class diversification, our investors can segue way into putting single-family home investments into the fund. Meanwhile, making these areas livable, appealing and fundamentally opportunistic. In return, we can expect an influx of first time home buyers, renters, borrowers, and families. When you create charming up-and-coming neighborhoods filled with Walmarts and Targets then people will be incentivized to move there, filling the demand of customers.

There is a big crossover between building in opportunity zones that lasts between 7-10 years and economic growth of communities that have been boarded up, people have moved out, building has been condemned. Communities that might have previously been more attractive, had a larger population, and where investors and developers were once putting their investment dollars. That is the crux of the message… that these opportunity zones create a number of different ways to invest into single-family homes, commercial properties, land, etc. in terms of both long-term and short-term benefits. Now that we are 11 years removed from one of the biggest crisis since 1929, you can tell banks, lenders, communities, developers, builders are not interested in those areas. The government is creating an opportunity to go back to these areas and develop.

Revolve Capital Group has continued to be at the forefront of revamping communities. Our firm and many of our investors purchase homes that are pre-foreclosure all the while helping families avoid foreclosure altogether.

What are the disadvantages?

While anyone can benefit from investing in these areas, the only way to qualify for the tax incentives is by purchasing the investment through a qualified opportunity fund. EIG.com released information explaining “You cannot simply purchase real estate in an opportunity zone, there has to be improvement to the property to ensure it meets the qualifications of the investment and providing economic stimulation. Additionally, the Fund must invest at least 90% of their assets in a qualified Opportunity Zone.”

According to the Economic Innovation Group, Opportunity Zones incentives are “tied to the longevity of an investor’s stake in a qualified Opportunity Fund”. They continue on explaining…

“There are three core tax incentives:

Temporary deferral: A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the Opportunity Zone investment is disposed of or December 31, 2026.

Step-up in basis: A step-up in basis for the deferred capital gains reinvested in an Opportunity Fund. The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15% of the original deferred gain from taxation.

Permanent exclusion: A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years. This exclusion only applies to gains accrued on investments made through an Opportunity Fund. There is no permanent exclusion possible for the initially deferred gain.”

Essentially, if you choose to invest in qualifying opportunity zones your capital could be tied up for 7-10 reducing additional opportunities to invest in a variety of other asset classes.

The Opportunity Zones is a step in the right direction for the government to stimulate economic growth in underserved areas; however, our company firmly believes it is more advantageous for investors to focus on preforeclosed assets. There is not a requirement to hold a distressed note investment for an extended period of time if it is not providing the expected return, you have the option of investing in any nationally located area, and most importantly you can still revamp communities by choosing to keep families in their homes

For a more passive income stream that provides economic stimulation, potential growth for lower income distressed neighborhoods and multiple exit strategies we suggest considering notes for your future investments. Contact us today to learn more information on how we can help you grow your portfolio.

Are you following us on social media? Keep in contact with us and see the latest news and updates by following us on your favorite social media outlets:

LinkedIn
Facebook
Twitter
Instagram

Sources:

Economic Innovation Group (2019), Opportunity Zones FAQs
Retrieved from: https://eig.org/opportunityzones/faq

IRS (2019), Tax Reform
Retrieved from: https://www.irs.gov/tax-reform

IRS (2019), Opportunity Zones Frequently Asked Questions
Retrieved from: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

IMN Chicago Midwest Recap

IMN Opportunity Zones Forum (Midwest) Recap

Last week Revolve Capital attended the IMN Opportunity Zones (Midwest) in Chicago.

The conference discussed Opportunity Zones surrounding the Tax Cuts and Jobs Act of 2017. Opportunistic zone areas include neighborhoods infected by factors such as distressed mortgages, lost jobs or boarded up neighborhoods. By building in these areas, investors can actually retain their capital gains tax instead of paying it to the government.

In the next coming weeks we will be posting content surrounding the opportunities available. Stay tuned for more…

Man working with a computer, search flights on the screen, offic

Join Us in Chicago

IMN Opportunity Zones Forum (Midwest)

We are one week away from the IMN Opportunity Zones Forum (Midwest) in Chicago, Illinois. Join us September 19th to hear key speakers such as Chaz Guinn and Anthony Scaramucci. Guinn will be discussing “Accessing Creative Financing to Close Deals Outside of Primary Markets”.

The forum will all also provide an update on QOZs from the following perspectives:

• Legal & Regulatory Implications
• Tax & Accounting Considerations
• Investment & Community Impact
• Deal Flow Management & Fund Structuring
• Market Selection & LP Relations
• Risk/Rewards & Deal Due Diligence

To learn more event highlights, please visit our former blog post regarding the conference.

We look forward to seeing you there.

Please visit the IMN’s registration page by CLICKING HERE to purchase your tickets.

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.

Are you following us on social media? Keep in contact with us and see the latest news and updates by following us on your favorite social media outlets:

LinkedIn
Facebook
Twitter
Instagram

IMN: Opportunity Zones Forum (Midwest) 2019

IMN Opportunity Zones Forum (Midwest)

We are excited to announce we will be sponsoring the upcoming IMN Opportunity Zones Forum (Midwest) in Chicago, Illinois, September 19, 2019.

“This one-day conference will dive into real-life applications of the community development tool established by Congress in the Tax Cuts and Jobs Act of 2017. Attendees will learn how their peers are executing long-term investments in low-income urban and rural communities nationwide.”

Since their inception, Qualified Opportunity Zones (QOZs) have drummed up a host of questions about how the program will work and how commercial real estate developers, fund managers, family offices, wealth managers and their legal and tax advisers can tap into these new tax-advantaged opportunities.
Chaz Guinn, the President of Revolve Capital Group, will be discussing Accessing Creative Financing to Close Deals Outside of Primary Markets at 4:10pm. To view the agenda please CLICK HERE.

Event Highlights

7:45 am

Registration & Breakfast

8:40 am

Anthony Scaramucci, American financier, entrepreneur and political consultant who briefly served as the White House Director of Communications, will be speaking at the event to discuss Unlocking the Potential of Opportunity Zones.

Anthony Scaramucci is the Founder and Co-Managing Partner of SkyBridge Capital. He is the author of four books: The Little Book of Hedge Funds, Goodbye Gordon Gekko, Hopping Over the Rabbit Hole (a 2016 Wall Street Journal best seller), and Trump: The Blue-Collar President.

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001. Earlier, he was a vice president in Private Wealth Management at Goldman Sachs & Co.

In 2016, Scaramucci was ranked #85 in Worth Magazine’s Power 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst & Young’s “Entrepreneur of the Year – New York” Award in the Financial Services category. Anthony is a member of the Council on Foreign Relations (CFR), vice chair of the Kennedy Center Corporate Fund Board, a board member of both The Brain Tumor Foundation and Business Executives for National Security (BENS), and a Trustee of the United States Olympic & Paralympic Foundation. He was a member of the New York City Financial Services Advisory Committee from 2007 to 2012.

In November 2016, he was named to President-Elect Trump’s 16-person Presidential Transition Team Executive Committee. In June 2017, he was named the Chief Strategy Officer of the EXIM Bank. He served as the White House Communications Director for a period in July 2017.

Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.”

4:10 pm

Chaz Guinn will be discussing Accessing Creative Financing to Close Deals Outside of Primary Markets.

“Chaz Guinn is the President and Managing Director of Revolve Capital Group “Revolve”. Chaz, specializes in 1st lien NPL/RPL whole loan trading, and has built a track record of structuring, negotiating, and executing some of the largest trades in the lower-valued market segment.

Over the past decade, Chaz established whole loan trading desks for two large private equity firms in the U.S. that managed well over a billion dollars in delinquent loans. Chaz has been focused on building lasting relationships with Wall Street, Investment Banks, GSE’s, large real estate funds, qualified national vendors and servicers to allow Revolve Capital Group to become a household name.

Chaz and his partners decided to form Revolve Capital Group, whose primary objective is to be a market leader in the lower-valued asset-class and provide solutions to both the banking sector, distressed homeowners, private investors, and local communities that have been affected by the financial downturn in the housing market. Our focus is centered on loans secured by properties with market values of less than $150,000.

Chaz is positioning Revolve to be one of the largest private real estate groups acquiring non-performing/re-performing debt. Combining his education in Finance and Economics with the practical management of supply and demand, Revolve made a conscious strategy to allow other private investors, real estate funds, family offices, and non-profit organizations to participate in this recovery as well.”

Who Should Attend

  • Commercial Real Estate Developers
  • Real Estate Private Equity Firms
  • Institutional Investors
  • Family Offices & High
  • Net Worth Individuals
  • Registered Investment Advisers (RIAs)
  • Fund Administrators
  • Law/Accounting/Consulting Firms
  • Federal, State and Local Government Entities

To purchase your tickets, please visit the IMN’s registration page by CLICKING HERE.

How to Get Quality Note Deals; Podcast with Ken Shortle and Chaz Guinn

Podcast Interview with Chaz Guinn and Kevin Shortle:

We are excited to announce Chaz Guinn, the president of Revolve Capital, was interviewed by Kevin Shortle of Prospeak Productions to discuss obtaining quality note deals and current note inventory.

Shortle and Guinn discussed note deals, explaining how to obtain quality note deals and current inventory.

“The inventory is not gone, especially on the nonperforming side. It has simply shifted and it’s going in a different direction. Chaz Guinn has been on the side of the industry that most people don’t get to see, those people that buy in bulk and then go through due diligence to get that inventory out to individual investors. Chaz is the President and Managing Director of Revolve Capital Group, a real estate firm that is an active purchaser of seasoned or re-performing loans. He shares some tips on how you can get your hands on quality note deals and shares his insights on the quality of inventory he’s seen, why they created the firm, and the key focuses they’re looking at.”

Listen to the Podcast now by visiting the website: CLICK HERE

Are you following us on social media? Keep in contact with us and see the latest news and updates by following us on your favorite social media outlets:

LinkedIn
Facebook
Twitter
Instagram

IMN: NPL Notes & Default Servicing Forum (West) Recap

IMN Notes & Servicing Forum Recap

Last week Chaz Guinn, the President of Revolve Capital Group, moderated a panel at the IMN Notes and Default Servicing Forum in Dana Point, CA.

Of the five gentlemen on the panel combined had over $10 billion of single family homes that they owned under management.

The IMN is bringing together all of the movers and the shakers in our business to be able to teach you, the everyday investor, how to get into our space and do it safely, properly and in the comfort of your own home.

It is an alternative investment for those of you that are stuck in the stock market, a little scared of where the market is going. We’re all seeing domestic tariffs, global trade issues happening, what is happening with interest rates… this is where people are learning alternative ways to create a long term sustainable retirement plan backed by single-family homes.

To view upcoming IMN Conferences CLICK HERE.

National Secondary Market Conference & Expo, New York – 2019

MBA’s Secondary Market Conference

We are excited to announce we will be attending the upcoming National Secondary Market Conference & Expo in New York, May 19-22, 2019.

“Attend MBA’s National Secondary Market Conference & Expo to make the connections you need to take your business to the next level. It is the place for wholesale and correspondent lenders to connect, along with lenders and vendors that contribute to the pipeline of selling loans into the secondary market. We bring together the regulators, experts and key industry officials that help inform and educate you on the latest happenings in our industry in order to create the opportunities and inspire the innovation to produce market-based solutions. See the full agenda for informative General Session, break out sessions, networking events and more.

Who Should Attend: industry leaders and decision makers from residential and capital markets, including CEOs and senior-level executives, mortgage investors, investment bankers, rating agency professionals, risk managers, mortgage lenders, mortgage insurers, FHLB members, regulators, REITs, wholesale, correspondent and retail production executives, buyers and sellers of distressed assets, mortgage brokers and warehouse lenders.”

To purchase your tickets, please visit the Mortgage Bankers Association registration page by CLICKING HERE.

IMN: NPL Notes & Default Servicing Forum (West)

IMN Notes & Servicing Forum

We are excited to announce we will be sponsoring the upcoming NPL Notes & Default Servicing Forum (West) in Dana Point, California, June 3-4, 2019.

“IMN is excited to announce its 4th Annual NPL, Notes & Default Servicing Forum (West) is returning to Dana Point, CA this June 3-4. Last year’s West Coast Forum welcomed 350+ Institutional NPL & Note buyers and service provider participants as well as 20+ exhibitors/sponsors. The program once again will feature Large Institutional Buyers, Mid-Sized Funds and Smaller private buyers, with scheduled networking activities to meet your educational and networking needs.”

Chaz Guinn, the President of Revolve Capital Group, will be hosting on a panel Monday morning at 9:30am. Guinn will be asking the panel questions about the topic Large Institutional Players: How are Your Strategies Changing as the Expensive Gets More Expensive and the Scarce Gets More Scarce. To view the agenda please click here.

Who Should Attend: Accounting, Bankers, Brokers, Econometric Services, Insurance, Law, Lenders, Mom & Pops/Fix & Flippers, Property Analytics, Property Auction, Property Broker, Property Management/Property Management Services, Rating Agencies, Single Family Investors, Single Family Owners/Operators, Service Providers/Vendors”

To purchase your tickets, please visit the IMN’s registration page by CLICKING HERE.

Structured Financial Industry Group – Vegas 2019 Conference

SFIG Conference

“The Structured Finance Industry Group (SFIG) is excited to once again present the largest capital markets conference in the world, SFIG Vegas 2019, February 24-27, 2019, at the Aria Resort & Casino in Las Vegas. The three-and-a-half day program is developed by leaders within the structured finance industry representing the full spectrum of industry participants including investors, issuers, financial intermediaries, regulators, law firms, accounting firms, technology firms, rating agencies, servicers, and trustees.”

“The SFIG Vegas 2019 App is now available to download! Simply search for “SFIG Vegas” in the Apple App Store or Google Play, and download it to your iPhone, iPad, or Android device.”

“Join the online #SFIGVegas conversation and expand your professional network!”

Who Should Attend

  • Accounting Firms
  • Analytics & Big Data Firms
  • Broker-Dealers
  • Commercial Banks
  • Consulting Firms
  • Endowment Funds 
  • Finance Companies
  • Government Entities/Regulatory Bodies
  • Hedge Funds
  • Insurance Companies
  • Technology Companies
  • Law Firms
  • Mutual Funds
  • Originators
  • Pension Funds
  • Rating Agencies
  • Retail Banks
  • Servicers 
  • Trustees

To purchase your tickets, please visit the SFIG Vegas 2019 Registration Page by CLICKING HERE.

Delinquent Loans May Still Be Distressing Housing Industry

Since the 2007 recession, most of America has believed our economy is on a steady incline and we are free and clear of another recession. According to Keith Jurow, in his article written “Why bubble-era home mortgages are a disaster waiting to happen” this is actually not the case.

“The truth is these mortgages are still dangerous and could soon undermine the housing recovery.”

KEITH JUROW

The below chart shows the drastic increase in loans delinquent more than 5 years… Hawaii (for example) once only had 4% delinquency rate went up to 67% in 2018.

His explanation points to factors such as homeowners who stop paying their mortgages without consequences…

Jurow’s claims are strengthened by the actions of Fannie Mae and Black Knight Financial Services. These companies regularly provide delinquency rate statistics, but for the past 2 years, the data has not been provided. The last available stats showed the re-default rates were nearly 40%.

To find out more about why Jurow believes we are only 6-12 months away from another housing bubble, visit his article HERE

The IMN’s 3rd Annual NPL Notes & Default Servicing Forum, Florida – 2019

We are excited to announce we will be attending the upcoming IMN’s 3rd Annual NPL Notes & Default Servicing Forum in Florida this upcoming February 7th thru 8th, 2019.

“IMN is excited to return to Fort Lauderdale, Florida on February 7-8th, 2019, for our next NPL, Notes & Default Servicing Forum. In its third year on the East coast, we look forward to welcoming back large institutional buyers, mid-sized funds and smaller private note buyers to discuss market trends, with new sessions addressing RPL securitization and REO to rental property strategy.

“In addition, we welcome a new crop of servicers and default professionals to discuss topics surrounding foreclosures and default servicing. These fresh supplements to the program and delegation promise valuable opportunities for information sharing and networking.”

To purchase your tickets, please visit the IMN Registration Page by CLICKING HERE.

Freddie Mac Mortgage Rates Raising for Four Consecutive Weeks

According to the HousingWire… “Mortgage rates inched forward for the fourth consecutive week, according to Freddie Mac’s latest Primary Mortgage Market survey. Freddie Mac Chief Economist Sam Khater said the 30-year fixed-rate mortgage increased once again to its highest level since May.”

“Amidst this four-week climb in mortgage rates, the welcoming news is that purchase applications have risen on an annual basis for five consecutive weeks; however, given the widespread damage caused by Hurricane Florence in the Carolinas, the next few months of housing activity will likely be somewhat volatile.”

SAM KHATER

Please click HERE to read the original article.

How to Manage a Successful Out-of-State Investment Property

When our new investors begin learning the many benefits of investing in the distressed mortgage note space, they frequently ask us an important question…

How do I invest outside of my own backyard?

Ethan Roberts has addressed some of the pros about investing out-of-state, and ways to ensure your property is a successful investment decision.

 

Read more now by visiting his blog post HERE.

Welcome to Revolve Capital Group

Revolve Capital Group (“RCG”) is a privately held real estate investment firm located in Anaheim, CA. We specialize in the acquisition, management, and sale of non-performing and re-performing mortgage notes across the United States. Since 2007, our management team has been at the forefront of the U.S. mortgage market downfall. Between 2010 through 2018, RCG’s management team purchased, managed, and sold over 7,500 single family homes and nearly one billion in total debt.

We have experience in many facets of real estate including residential, commercial, multi-family, hard money loans, servicing, foreclosure, bankruptcy, rental, fix/flip, and other alternative real estate investments. RCG executives and board members form a unique team of accomplished professionals from an array of different backgrounds. Including Digital Media Advertising, mergers/acquisitions, IPO, accounting, Triathletes, and life-long entrepreneurs.

Many owners and holders of severely delinquent loans, such as Tier 1 banks, expanded their loss mitigation capabilities over the past several years, and the internal efficiency on managing these loans continues to decline making the sale of these loans out into the secondary market an attractive strategy for these sellers. Larger transactions are often conducted on a negotiated basis with major investment banks acting as dealers and reselling the loans to mid-size companies for a spread. The banks and other institutional sellers also place loan portfolios for sale through an advisory or auction process.

 

However, many smaller investors are unable to acquire product directly from these institutional sellers, either in a negotiated sale or by bidding at an auction, because they cannot meet the stringent buyer qualification requirements of the seller, such as demonstrable financial strength, proof of funds and infrastructure necessary to manage a multi-state portfolio of notes. Furthermore, smaller investors are uninterested in acquiring large portfolios along a broad spectrum of loan characteristics and geographic locations, preferring to focus on specific types of loans (i.e., nonperforming, sub-performing, re-performing, occupied, vacant) or within certain states or markets.  Conversely, many institutional sellers are less inclined to work with buyers interested only in small portfolios with specific criteria.

 

RCG, continues to foster and build strong relationships with Tier 1 banks, GSE’s, Institutional Sellers to build the proper bridge allowing the everyday investor to get into the business of buying, owning, and managing their own real estate portfolio from the comfort of their home or office. We show you the step by step approach of buying, owning and managing notes to accomplish your overall strategy. Over the last decade, our management team has developed one of the largest followings to purchase short or long-term residential note opportunities. Whether an investor is seeking a long-term strategy (Cash Flow) or short-term strategy (Quick Flip), our team has assisted over 10,000 individual investors grow their portfolio from owning one note/property to owning thousands in their portfolio. No amount is too small to invest with Revolve Capital Group. Many of our clients/note buyers, are buying “1-5 notes (monthly)” or buying as many as “50-100” monthly and growing. We encourage you to check out our platform and take the step forward to your future!

24th Annual ABS East 2018

24th Annual ABS East 2018

The conference will take place September 23-25 at the Fontainebleau in Miami Beach, FL. With more than 2,000 investors and issuers already registered, ABS East 2018 is on pace to be our biggest event yet. We’re pleased to welcome back so many leaders in the space and are looking forward to bringing together the biggest and brightest securitization players for three days of non-stop content, networking and deal-making opportunities.

Join your colleagues from across the industry for quality content and expert insights. There is something for everyone at ABS East, which is a testament to our democratic process for selecting speakers that allows everyone to have a voice. Working together with our Investor Advisory Board, which is composed of 18 of the largest and most influential ABS investors, we select only the most high-quality speakers from across the industry.

With an expected delegation of over 4,000 structured finance professionals, including more than 2,000 issuers and investors in the ABS market, ABS East is where you go to get deals done.

Who Should Attend

  • Regulators
  • Fixed Income Investors
  • Issuers Funding via Debt Capital Markets
  • Underwriters/Structurers
  • Rating Agency
  • Analysts
  • Trustees
  • Servicers Technology Platform Providers
  • Analytics Firms