ECONOMIC DOWNTURN IS AN OPPORTUNITY.
Why?
Private Money Trust Deed investment market has been absorbed by the Institutional Non-QM Mortgage Companies backed by Wall Street Investment firms seeking high yield investments. Typical Trust Deed Investors are simply being pushed out of the market and replaced by much Larger sophisticated savvy Investors.
Wall Street’s growing demand for these loan products have driven these lenders to expand and ultimately weaken their important underwriting guidelines, similar to what happened in the subprime crash of 2007 – 2008. The Main difference now is that those Bad credit borrowers did not receive higher LTV's similar to the meltdown and the Non-QM loans had much higher standards for qualification with stipulations.
The COVID-19 pandemic and Crash of the Market has created liquidity issues for the Non-QM lenders, causing them as well as Wall Street to rethink their overall position moving forward. As a result, many of these lenders have already gone out of business and the small group of survivors will be forced to extremely tighten their underwriting guidelines or will also be closing their doors indefinitely.
Lenders are in an All Out panic mode and will soon be reorganizing their funding models. In the next 60 – 90 days these lenders will come out with more harsh Strict underwriting guidelines. There is absolutely No choice.
What else does this Mean?
Many Borrowers have been left in the dark or have had transactions that were cancelled by these Non-QM lenders. Many Non-QM lenders will simply not survive this pandemic crisis. Athas Capital one of the leaders if not the leader in volume for Non -QM has even abruptly closed down.
Why is this an Opportunity?
Over the next several months there will be a high volume of good solid loans requiring an experienced Private lender. With Money Market Rates at historically lows, Real Estate Strategies plan is to focus on lower loan to values (60% LTV or less) with yields from (7% – 9%) with 12 month to 3 year terms. This Investment strategy is a conservative strategists dream!
How to take Action!
If you have money sitting in the bank, earning very low CD rates or in this volatile Stock Market losing money, or just would like to diversify give me a call at 310-817-9435 or email me at Restrategiesca@gmail.com.
We are looking for conservative investors 500K – 10M.
