Buying Discounted Performing Mortgages instead of rental properties
Gemini Capital Advisors has worked with a number of real estate investors who have converted from buying rental properties to buying discounted mortgages notes and trust deeds. There are pros and cons to both investment strategies which will be covered below. Part 1: Buying Performing Mortgages Instead of Rental Properties for Cash Flow Pros: No Maintenance Costs Purchase Mortgages with a built in discount Ability for both monthly cash flow and windfall profits when homeowners sell or refinance to pay you off in full Less Competition from other investors since this is a growing niche market Cons: If a homeowner stops payment the foreclosure process is typically longer and more ...
Investment Philosophy
Purchasing discounted portfolios of mortgages and trust deeds from institutional lenders and private equity funds seeking liquidity
Types of Investments
Non Performing First MortgagesRe-Performing First Mortgages
Discounted Performing First Mortgages