Non-Performing Notes Restructuring and REOs Fund

 

In the current mortgage and real estate market downturn, most investors focus on finding foreclosure deals that are significantly under value and profit either from flipping properties or holding for the long-term. However, any investor who has attempted to find the deals understand the difficulties, and the amount of effort and expenses involved to make a deal work.

Luckily, there are more passive ways to profit from the current market condition, and better yet, even become a joint force to help expedite the market recovery and stabilize the economy. If you are looking for a passive approach to get 20% to 40% Return on Investment (ROI) by partnering up with a company that has been prepared for this day way before the storm, please read on!

As the number of foreclosures skyrocketed, many investment groups have been actively buying non-performing assets from the major lenders and try to profit from flipping hundreds of properties and mortgage notes at a time. Unfortunately, some of these groups and hedge funds only had their eyes on the profit and lack the expertise in handling the large volume of properties in the open market, thus causing further instabilities in some markets. In the recent months, an affiliated company of ours has established exclusive relationship with a major national lender to continuously buy down their non-performing mortgage notes at 19% of the note value before they head to foreclosure sales. Each notes portfolio is around $4M to $6M of size, with properties all over the nation and loan amounts under the median value of the market.

The key distinction between this company and others is the process after acquiring the non-performing notes. Instead of flipping the notes to another investment group at a higher price or letting all properties securing these notes go to foreclosure, this company actually works with each homeowner holding the note to work out a solution which helps them stay at their homes and make payments at levels they are able to make each month. Buying these notes at deep discounts opens up the possibility to forgive the late payments the homeowners had on the notes and most importantly giving equity back to the owners to allow for a refinance over a short period of time. This restructuring step brings back value to the mortgage notes when the previously non-performing assets return to performing assets.

 

Monthly Mortgage Rate Resets Graph Shows The Subprime Meltdown is near Its Peak

 

This system of restructuring creates WIN-WIN to all parties involved and has the following benefits:

1. It helps homeowners to stay in their homes and avoid foreclosure which will ruin their credit, not to mention the trauma caused by going through a foreclosure

2. It helps reduce the number of foreclosures and bank owned properties which will lead to faster market recovery and stabilization

3. It helps the lenders to unload non-performing assets which will allow them to recoup some losses for their stockholders and focus on their primary business to continue to lend money.  This will also help recovering the mortgage market

4. Lastly, it helps you the investor to profit handsomely while helping out for a great cause!

 

Here are the basic features of the investment fund:

1. Each Notes portfolio package will be purchased by an LLC to hold the assets. Each investor/entity will contribute the capital and become a member of the LLC

2. Each unit size is around $50,000 [1]

3. The investment is completely passive, including the restructuring of the notes

4. Once the notes become performing assets after restructuring, the investors will receive the mortgage payment cash flow on a quarterly basis

5. The exit strategies after the notes become seasoned (6 months and longer) include refinancing the notes and selling the performing notes back to the large institutional lenders

6. The expected time to receive the investments back is around 18 months to 24 month maximum

7. A small percentage of the note package will become REOs (bank owned properties) and will be sold in the open market, which will result in higher and faster profit

8. A portfolio size around $5M is expected to be acquired each month for the next 3 years. Investors have plenty of opportunities to continue to invest in different portfolios over time.

9. This is opened only to accredited investors [2]

 

If you are interested in this wonderful investment opportunity, please contact us for more detailed information and schedule for a phone appointment for the project overview.

 

To obtain the following information, please download the Non-Disclosure, Non-Circumvention (NCND) form and send us the signed form via e-mail or fax.

1. Investment Product Overview
2. Investment Fund Profit Projection
3. Operating Agreement of the LLC holding the assets
4. Subscription Agreement of the LLC

 

Footnotes:
[1] JNK Ventures allows a smaller contribution of $20,000 per unit by investing together with the JNK Ventures fund as a group.  A 5% acquisition/servicing fee of the fund value will be charged which slightly reduces the investment return.
[2] Definition of accredited investor: a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase; Please consult the SEC website for additional definitions.

 

E-mail: info@jnkventures.com