Finding Real Estate & Note Deals In 2020: You’d Better Partner Up

By Fuquan Bilal

Looking for real estate and mortgage note deals in 2020?

Where are the best deals? What are the challenges? What’s it going to take to get your hands on the most profitable opportunities?

The Search For Inventory

One of the top challenges for investors this year is going to be finding deals. At least deals where the numbers really work, the margins are good and you aren’t just speculating.

There is plenty of property up for sale. There are going to be many motivated sellers and agents. Yet, many of them are going to have to get more realistic.

Where The Best Deals Are

While many retail sellers and their agents are cutting their listing prices, they still aren’t pricing in line with where the market is, and more importantly, where they need to be for investors.

Foreign investors and the biggest pension funds may be okay with zero yields. That’s probably not going to cut it for you though.

That leaves bulk deals. Whether that is pools of notes, entire condo buildings, or portfolios of properties from other investors, bulk acquisitions are where the profits and lower risk deals are.

What It Takes To Get Them

When we’re talking about bulk deals, we’re talking millions of dollars. Sometimes a lot more than that. That takes capital. For most investors this also means some form of leverage. Even if you have all the cash, sharing that risk and bringing in others who can help in various ways is just smart.

Cash isn’t the only thing you need. There are few people with these portfolios. That means you need connections too. You’ve got to have the relationships, or someone with them to get access.

Even then, you need experience and a solid resume. Sellers have to be even more careful who they are selling to today. You also need to know how to handle portfolios of this size. Again, all leading back to the need for and advantages of having partners.

Who will you partner with this year?

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.