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Apollo Financial Group LLC purchases and sells non performing bank notes. We negotiate with homeowners to create a win-win situation for Apollo Financial Group and the homeowner. This gives Apollo Financial Group a solid return of of a non performing note and gives the homeowner a chance to make good on his default debt. We also resell the default loans that we pick up from distressed debt first and second lien mortgage note portfolios to any note buyer that is interested in mortgage notes for sale.
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Apollo Financial group has developed relationships with a few larger institutions whom have access to distressed debt bank portfolios. Using our proprietary model we are able to cherry pick out of this pool of default loans to achieve superior returns. We pursue various exit strategies to achieve the desired return. We purchase first and second lien mortgage notes to achieve our goal. When entering a position we have two things in mind, to achieve a substantial return and to create a favorable outcome for a willing homeowner that wants to fix his default debt. This creates a win-win situation for both parties. We also extend this opportunity to the distressed debt note buyer whom are interested in buying notes. We have various mortgages notes for sale that are first and second lien.
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What are Non Performing Bank Notes? |
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Non Performing Bank Notes are bank originated loans that are no longer performing according to the terms they were written. The non performing notes that Apollo Financial Group deals with are usually promissory notes that have an underlying mortgage or deed of trust that secures the loan by a collateralized property, also known as secured loans. |
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Debt Investing vs. Equity Investing |
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99% of the real estate investors invest in the equity side of real estate. This is because that is what the world mostly knows. Debt investing is a whole different ballgame that can be just as profitable with a fraction of the headache. As a notebuyer that is basically a debt investor, you have less to worry about than the one who owns the money. The homeowner is the one responsible for his own equitable interest to take care of the property and fights to keep his home. The notebuyer takes more of a back seat and only geta more involved if the note is not performing. Most people do want to save their homes and you will find that as a notebuyer you can work to achieve a solution that can help both parties in event of default note. |
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In addition to purchasing first and second lien mortgage notes and having mortgage notes for sale, we also purchase distressed debt that are portfolio's of charged off consumer debt and credit cards. The default debt purchased are always with statue of limitations and are generally anywhere between a few months old to a few years. We outsource all our collections to minimize overhead so we can just focus on acquiring default loans. |
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Why Would a Note Buyer Buy A Second Lien Mortgage Note? |
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Second lien mortgage notes are riskier than first liens mortgage notes which is why they can be purchased cheaper. The fact that they are cheaper gives the note buyer alot of leverage. Its important to note that when entering into a second lien mortgage note position to make sure that your original investment is adequately covered by the equity in the home. This will give your more negotiating room if your exit strategy is a short sale or if you need to foreclose on the property to recover your funds.
A note buyer that picks up a note cheap also presents a tremendous opportunity for the homeowner. By the note buyer accepting a principal reduction the note buyer can give the homeowner a huge incentive on getting him to reperform.
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