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Performing and Non-Performing Notes Overview
We work with real products, not circulated lists that Investors will never close on, either because they don't exist or by the time it reaches them, it’s sold already. We update our lists of available Notes on weekly basis. The Notes are obtained from Small to Medium sized Banks, Finance Companies, Private and Hard Money Lenders looking to re-capitalize. The Assets securing the Notes are high quality Assets and not some swampland or properties that have been boarded up for months with busted pipes and in vandalized war zone neighborhoods. In most cases, they are Builder/Developer’s inventories. These types of Notes will trade between 45-70% of loan value or higher, if they are considered low LTV by the Institution.
We do have sources for the 25-45% of loan value Notes, however, these pools are mixed. They may have a few 1st position, 2nd position, 3rd position, no position, business assets, consumer loans, etc. for collateral. We can have a broader conversation regarding this is this is what an Investor desires.
The Performing Notes will typically trade for 70-95% of loan value, depending on the Asset, Market, and Sponsor Credit. The Assets securing these Notes are typically “Trophy” assets. These Notes will typically have a low risk and yield.
While all Investors are seeking best pricing, keep in mind, these Institutions are also intending on realizing their lowest possible loss.
For Custom Order Request – All of the above procedures will be followed; however, the Investor must submit a summary of what they are in need of. It should include Geographical locations, Limits on Size of Loan, Type of Commercial Assets they desire, and what price Points they are comfortable with.
Common Questions?
1) When was the last payments made on the Note? – You will obtain this information once you have executed our Confidentiality Agreement.
2) Why are some Interest rates missing? - We update our list every Monday and receive new loans and pools every day. Sometimes, depending on when we receive new information, we don't always have the time to analyze the deals before we release the new list. Therefore, some of the information will need to be updated at a later time.
3) What is the Take down price? - On Non-Performing, Sub-Performing and Watch List, we do not have any expectations. This is driven by the Investor's offer and the Bank's acceptance. On the Performing Notes, we will indicate on the list what the Bank's initial expectations are.
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