Apollo Financial Group 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 on 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 note buyers that are interested in mortgage notes for sale.
What Do We Do?
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 buyers whom are interested in buying notes. We have various mortgage notes for sale that are in first and second position with a mixture of non performing and some that produce cash flow.
What are Non Performing Bank Notes?
Non Performing Bank Notes are bank originated loans that are no longer performing according to the terms they were written, thus are not producing a cash flow. 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.
Why Would a Note Buyer Buy A Second Lien Mortgage Note?
Second lien mortgage notes are riskier than first liens mortgage notes, which is why they can be purchased at a lower cost. The fact that they are purchased for a large discount gives the note buyer leverage. It's important to note, when entering into a second lien mortgage note position to make sure that your original investment is adequately covered by the equity of the property. This will give you 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 at a low cost, can also present a tremendous opportunity for the homeowner. The homeowner can benefit if the note buyer accepts a loan modification by reducing the interest rate and/or principal.
What Else Do We Do?
In addition to purchasing first and second lien mortgage notes and having mortgage notes for sale, we also purchase distressed debt that are from portfolios of charged off consumer debt and credit cards. The default debt purchased are always within the 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.
Debt Investing vs. Equity Investing
99% of the real estate investors invest on the equity side of real estate. Debt investing is a whole different ballgame that can be just as profitable with just a fraction of the headache. A notebuyer is basically a debt investor. As a notebuyer, you have less to worry about than the one who owes 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 get 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.
What is Cash Flow?
Cash flow is the transfer of capital directly into as well as out of an organization, endeavor, or economic product. It will always calculated for a specific duration. The calculation of cash flow may be used for figuring out additional parameters that offer information about a business's worth and state of affairs. Cash flow may be used, as an example, with regard to determining variables:
To find out a venture's yield or worth. The time period of cash flows straight into and out of endeavors are utilized as inputs in financial models as in the internal rate of return(IRR) besides net present worth.
To discover problems with a firm's solvency, being in the black doesn't signify being liquid. An organization can certainly stop working because of a shortage of money while profitable. By way of example, a company may very well be solidly in the black yet producing very little money (as often is the scenario for an organization that trades its own goods as opposed to selling for money). When this happens, the organization can be drawing additional operational money through issuing stocks and shares as well as raising additional monetary debt finance. Cash flow enables you to ascertain the 'quality' of income gained by way of accrual accounting. Whenever net gain comprises great non-cash products it's regarded as substandard quality.
To gauge the risks inside a financial product, e.g., complementing cash requirements, examining default associated risk, re-investment requirements, and so forth. Cash flow is a commonly used term used in different ways based on the framework. It could be defined by users regarding their own uses. It might make reference to actual past flows or forecast upcoming flows. It may possibly relate to the total of all flows included or maybe a part of those flows.