Gordon Moss buys non-performing junior liens on single-family homes as an option play, betting on borrower workouts rather than foreclosure exits. He wrote a book on the strategy in 2014 and returned to it in 2020 expecting COVID-related distress.
May 3, 2020.
www.realestateandnoteinvesting.com.
2014.
Hello everybody, it's Gordon. Director, Quixote ventures Research Institute QBRI we're here on May 3rd in beautiful Del Mar and look at these flowers behind us. This is really unique. It's a May spring day. Amazing out here. I get a question a lot people say hey, you named your site realestateandnodeinvesting.com real estate investing. We get that with the node investing. They say note kind of confuses us. They say Gordon. And you keep getting real specific about who you are. We say gordon, okay, you're the note guy. And I say no. They say oh yeah, you're the non performing note guy. And I say no. They say well what are you then? And I say I'm the non performing junior league guy. And they're like whatever that means. So I say hey, here's the bottom line. I found the best option play for single family house notes. As a non performing junior league, they could be bought for not much which was key. That's my option play. The banks had no clue what to do with them. They couldn't fix them and we can and make a huge split. So do I understand the note game? I do. Do I understand the non performing note game? I do. Do I understand the non performing first loan game? I do. I watched it and studied it enough to realize it wasn't for me. The exit was through the house, meaning you take the note that's not being paid, you foreclose on the people and you push them out of their house. I said I'm not a vulture. I said that's not me. The non performing junior league game had notes that weren't working that the banks created but couldn't collect on and they were willing to give them to me. Pennies on the dollar. I said wait a minute here. And the exit strategy was through the borrower. I would call these borrowers and say hey, tell me the story. What happened? Well, you know, I got this note and I can't pay it. What were you paying before? $800 a month? Well I say what did you pay now? Would you pay $100 a month, 200 dol month to keep your home, to keep everything the way it is? They said yes we could. And I said okay, that's a win win. So working it out through the borrower, the non performing junior lien strategy, I actually got so focused on it I wrote a book about it in 2014. Now it's 2020 now and I've come out of retirement and said, you know What? This whole 2020 COVID 19 debacle is going to light up like nobody's business. There's going to be a lot of bad debt out there. So I dec step up re engage myself and help people. So if this interests you, and if you want me to take it to a little bit more granular level to explain it to you, come to my website www.realestateandknowinvesting.com. there's a lot of information. I've made speeches for the last seven years. I think it could be of help to.
