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By Fuquan Bilal
As most of us know, growth comes with responsibility. Unlike Barbie and Ken, dolls most children used to play with in their younger years, our dream houses come with a cost and they can vary in expense. Money management can be tricky when balancing a 1st and 2nd mortgage. Does it have to be? Believe it or not it, no. The National Note Group (NNG) believes the right strategies can transform non-performing mortgage notes into secured cash flow for companies and performing note buyers as well as help homeowners achieve financial resolution and avoid foreclosure.
What do we do? In NNG our company acquires, manages, and liquidates defaulted residential mortgages. Different from most banks, we do not lend money nor originate mortgages. NNG buys 1st and 2nd lien mortgages, secured by real property, at discounted purchase price and sells to either note buyers or keeps notes in company portfolio. As a note buyer there is a responsibility to manage mortgage notes and collect mortgage from homeowners. Homeowners do not always pay, however, and that can result in nonperforming mortgages notes. Nonperforming mortgage notes develop from owner’s failure to make payments for 90 days or more on their mortgage loans. It might be referred as “bad paper” yet in this real estate market it is fairly common and very inexpensive. We take nonperforming mortgage notes! Some say risky, but it’s not about the house to us. NNG’s 95% of deal execution is focused on borrowers.
Our business model is to purchase bank’s bad asset, contact the homeowner and conduct research on their financial history and what led to these hardships, understand the homeowner’s vision and what can be paid, finally, modify the payment plan so they can access their payments. Because NNG is able to acquire mortgage notes at a discount, we are able to negotiate beneficial terms with the homeowners, allowing them to stay in their homes. So I’ll ask you again, still think non-performing mortgages aren’t worth investing in? Still think maintaining your house isn’t possible?
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.
