Ep 39 - In this episode, we welcome back Lorraine Millington as she discusses the benefits of purchasing non-performing loans and doing due diligence before purchasing those notes. Lorraine shares her experience in a recent loan where she and her joint venture partner was able to get a high roi on the note. She also talks about building business with brokers, mentors, and the bank and the importance of having knowledge of the basics of notes. ________________________________ FREE Discovery call for The Microfamily Investing Accelerator https://calendly.com/noirvest/microfamilymavericks ________________________________ [00:01 - 05:29] Benefits of Purchasing Non-Performing Loans
- Check out part 1 of the interview with Lorraine!
- Non-performing loans are secured by a hard asset
- There is a potential to pick up properties under market value
- Doing due diligence to make sure the value of the asset supports the debt being purchased
[05:30 - 11:06] Experiences in Passive Paper Investing
- Did a joint venture with a client who wanted to start in note investing
- After doing a close on the loan found out the initial borrower was still making payments
- Discovering that the ROI on the loan is continuing to increase
- Importance of always asking the seller for information
[11:06- 16:05] Where to Purchase Notes
- Look for brokers, mentors, or coaches who have great relationships with banks
- Banks are looking for purchasers who can solve the problem of getting that asset of their books
- Make sure you have an accredited investor and enough money in the bank
- Importance of having knowledge of what notes are and JV partners
[17:30- 26:09] Closing Segment
- The final questions
- Diversification as being a protection against ignorance is that we can't believe that one stream, one strategy is going to blow it up for us. We have to make sure that we have our eggs in different baskets
- Lorraine shares his strategy in choosing between Baltic Avenue and Boardwalk
- What’s next for Lorraine?
- Connect with Lorraine!
Key Quotes “A non-performing loan can definitely be an option for you. But then also, if someone is looking for passive income opportunities, and maybe the stock market is a little bit too volatile for you, maybe the cryptocurrency market is, is a little too volatile for you. Cuz those are two of my better examples of a more passive paper income type of strategy.” - Lorraine Millington “The debt is still the debt, and you know, we're, we're not necessarily going to adjust that or modify that.” - Lorraine Millington Connect with Lorraine Millington through
www.melaninhomes.com. Follow her on
LinkedIn and subscribe to their
Youtube channel. Contact her at +1 440-305-5195. Let’s get connected! You can find Nicole on
LinkedIn,
Instagram, or
Facebook. Visit her website
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