Our firm has closed over 300 deals on mortgage loans valued at over $75 million dollars, with an average discount of 40%.
Our firm has closed over 300 deals on mortgage loans valued at over $75 million dollars, with an average discount of 40%.
Scottsdale Mortgage Investments is a nationwide mortgage loan investment hedge fund headquartered in Scottsdale, Arizona. Our Non-Performing Loan, (NPL) strategy was created to profit from opportunities in the defaulted residential 1st position mortgage market.
Ideally borrowers that fall on hard times should be given every opportunity to stay in their homes. The first approach on most non-performing loans is to reach out to borrowers and attempt to modify the loan or have it reinstated. Since we purchase loans at a discount we can offer lower payments to the borrowers.
Once a loan is performing it can be sold at a profit.
If negotiations with borrowers do not lead to a re-performing loan, the property itself can be seller financed to other borrowers. In this way we can keep as many homeowners as possible in their homes.
Investing in mortgage loans is an ideal acquisition strategy that guarantees a below market purchase price.
Investing in NPL's requires a legal process that leads to foreclosure, then auction where Scottsdale Mortgage Investments as the owner of the loan takes on the role of the bank. At the auction the loan can ideally get paid off.
If the minimum bid that we set at the auction is not met, possession of the property is taken. From that point multiple exit opportunities are available to profit, they include: loan modification, wholesale to flippers, fix and flip, seller finance to a new borrower, and more.
Having both multiple investments in a syndication and exit strategies reduces the risk of each investment.