Catherine Bell explains why investors buy nonperforming notes, mortgages where borrowers stopped paying. Investors acquire them at steep discounts, then restructure payments so borrowers can stay in their homes. It's like treasure hunting with a financial upside.
Hey everyone, this is Katherine Bell. I'm here with Titan Impact Group and I'm here to talk about why invest in non performing notes? And so what is a non performing note? It is simply a mortgage that somebody has stopped paying for whatever reason. And why do we invest in them? It's because of the discount it comes with. So one of the things that we.
Love to personally do is we love to go treasure hunting. We find all sorts of antiques and amazing treasures that way.
And distressed debt is kind of the same thing. And so what happens is we are.
Able to get these at deep discounts from the bank and then we turn around and love to work with the borrower to get the borrower figure out what's going on that they weren't paying it, and then figure out how we can restructure it so that they can keep paying it and stay in their home and stay in their community. So it's kind of a big old treasure hunt for us.
We love numbers.
I am a numbers nerd. I love spreadsheets and that's why we love doing what we do. I have a whole history of being a real estate investor for over 25 years of buy and holds to hundreds of fix and flips to a hedge fund with Airbnbs. I've done all that. But at the end of the day, being the bank is the most fun. And that's exactly what we do when we invest in non performing notes. So our investors that get to come work with us, we end up matching up one investor per note and so all their money is fully backed by that note. And we go together and we work with the borrower to get them re performing again and then turn around eventually and sell it. And our investor gets all their money back plus all the interest that was earned and we just keep doing it again and again. And the investor gets to know that they were a very active part of making sure that they are leaving every person, property and community better than we found them. Because that's what we do at Titan Impact Group. Thanks everyone.
