Non-Performing notes (NPNs) are accounts of borrowers which have been classified as distressed assets by banks. A perfect example is an overdue mortgage loan that is not producing income because the borrower no longer makes monthly payments. As a result of this, banks through their asset managers sell these notes in bulk to Note Buyers.
The hard to find Asset Managers
Most banks employ tons of gate-keepers that note buyers have to try really hard to get through to the right asset managers. Also, asset managers are often very busy and at times not available immediately to take calls from note buyers, hence regular follow-up is necessary, which in itself can be a time consuming and painstaking process.
Bad Note Brokers and their daisy chains!
Asset managers sometimes give their NPNs to Note Brokers to market them to note buyers. Well that’s an ideal situation; the reality is that most note brokers claim to have access to NPNs but really don’t and they are usually part of a long line of other note brokers making the same claims. A bad note broker is a real time waster because note buyers will spend time dealing with all parties involved in the transaction only to find out at the last minute that the note broker never really had access to any NPNs or a real asset manager in the first place.
The cure! Virtual Assistants = direct access to Asset Managers
Virtual Assistants (VAs) play a vital role in the businesses of note buyers and they have all the time in the day to spend clearing past the bank’s gate-keepers in order to get through to the asset managers responsible for the sale of NPNs in bulk. There are also a lot of tasks that note buyers can delegate to VAs; one of such tasks is for a VA to make sure that the NPNs for sale by the banks are still managed by the asset managers and have not been handed off to note brokers. VAs also makes sure that the assets managers are indeed the decision maker before introducing them to note buyers.
Researching Property Values; Highest and Best use of a Virtual Assistant
As soon as the NPNs have been forwarded to note buyers by asset managers, they can then scrub out sensitive information on the borrowers and send only the addresses of the properties to the VAs. The VAs can immediately assist the note buyers by getting additional information such as the property values. Values are diligently and carefully researched in such a way that only values of comparable properties within a 0.5 mile radius of the property and less than 6 months transaction history is obtained. Hence, note buyers are assured that the values obtained are recent and accurate. VAs make use of several real estate websites to extract the most recent data. VAs can also create Google and Bing maps showing all the pertinent information about each property in one click of the mouse as well as the aerial and/or a street level view.
Banks are affected by the ongoing financial crisis, as a result, many banks have failed or either filed bankruptcy. This situation presents a profitable opportunity for note buyers who are ready to take charge and play a vital role in turning frozen distressed assets into income for banks, hence creating a win-win situation for all parties involved. By buying in bulk, these assets can be bought at a fairly huge discount. With the help of VAs, note buyers will get direct access to the bank’s asset managers responsible for the sale of NPNs in bulk, and also will get the necessary researched information on the value of each property that will allow them to make better buying decisions quickly.
Owen: How Virtual assistants can help non-performing note buyers get direct access to bank asset managers. Non-Performing notes, what are they? Non-performing notes also called NPNs are accounts by borrowers that have been classified as distressed assets by the bank, usually because of non payments by the borrower. Sometimes, over a period of three months or more. A perfect example will be an overdue mortgage loan that is not producing any income because like I said the borrower’s not making anymore monthly payment and as a result, the bank will send this data to the asset manager who pool all this bad notes together and try and sell them in bulk to note buyers.
The hard to find asset managers. Well, It’s known for a lot of banks to employ lot of gate keepers and so for note buyers trying to get access to the right person on the bank, the right asset managers that handle the sales of this non performing notes, it can be difficult. Sometimes you have the asset managers being very busy so even after you found them, you spend the time to dig into calling different department in the bank, whatever, and doing the research and get into the right, find out who the person is that would sell the non-performing notes to you. Now, after finding the information, trying to talk to them personally and get them available so that you can discuss with them and share with them your note buying criteria. That, in itself demands regular follow up and sometimes that follow up process can be time consuming and can be also a painstaking process. Well, you also have the issue of the bad brokers and their daisy chains. Sometimes, as asset managers, give their non performing notes to note brokers to go broker them to note buyers. Well, that’s the ideal situation when you have a broker who has real relationships with asset managers and actually sometimes might even have the pricing expectations at which the asset managers looking to sell the notes but that’s the ideal situation. But the reality is that sometimes you run into a lot of brokers who just make claims or having such relationships and they don’t even have any clear relationships with any asset managers and there might be a chain of several brokers claiming to have relationships with different asset managers and before you know it, you get lured into it, the whole thing thinking that they have the right contact that you need and it goes from this broker, to that broker, to that broker and to that broker before you know you’re in broker daisy chain. So, a bad note broker can really be a time waster for the note buyer and a note buyer might end up spending time dealing with all the parties involved in the transaction only to find out at the last minute that note broker really did not have any access to non-performing notes or even a real asset manager in the first place. So you wanna watch out for such bad brokers you need to be dealing with. If at all you’ll gonna use a broker make sure you’re using a good one.
The cure to this situation is virtual assistants. And to me that equals direct access to asset managers. Well, because the vital assistant can play a vital role in your business as a note buyer. They have all the time in the day to spend making phone calls and getting past the bank’s gate-keepers in order to get you at the right person in the bank who is responsible for the sale of the non-performing notes involved. And then also, even after getting information on the name of the person and the contact information of that person, they can spend all the time in a day trying to get that person, the asset manager, on the phone for you so that once they get the asset manager on the phone, you can actually talk to that manager directly, exchange information and let them know your note buying criteria and you can take it from there. So now, the virtual assistant has helped you get direct access to the asset manager. There also a lot of tasks that a note buyer can delegate to virtual assistant. Trying to get hold of the asset manager is a very difficult thing, sometimes it involves a lot of follow up.
But you can also dedicate different tasks in your note buying business to VA. One of the things you can do is you can also have your VA speak with the asset manager and verify if at all, they do have non-performing notes. At the end of the day, when they send it to you, are they gonna be the person who makes the final decision on the offer that the note buyer will be making. Or even if they’re not the person who makes the final decision, you can have your VA always try to find out okay even after you send me the non-performing notes data okay, who else will be at your bank making decisions, that, at least you have the information upfront before you even start talking to the asset manager.
Some other activities you can have your VAs do: One of the things you can have your VA do is research property value. And to me this is one of the highest and best uses of a virtual assistant. Now, you now have, let’s say, you have gotten past the asset manager, you’ve talked to them, you’ve establish a kind of relationship with them and you’ve impressed them to the fact that they really want now to send you non-performing notes, maybe they’ll send you the disclosure agreement, you sign that and after you finish signing that, they now send you the pools of notes. Well, it’s now the stage where you have to make your bid, your indicated bid on the pool of notes you’re trying to buy. But the situation now is if you now have to work and look through each property in the pool and try to determine what you gonna pay, sometimes, that in itself can be a time consuming process. So, what you can also do is you can have your virtual assistant spend time on the internet using some free real estate website that have some value’s information and they can research the values for you using your system that you’ve created for them on how to do it. And so they can go over into like between 0.5 mile of that property and search for the history and sales transaction for within the last six months. So that, at the time they have done that you can now get some more insight as to what current values are for the property even before you place your indicative bid.
So, you just have to figure out, what are the things in note buying business that you can systemize and hand off to your VA so that they can handle it for you because you want to have them handle this tasks so that they can free off your time so that you can get involved with the more income producing activity.
Some other things you can have your virtual assistant do for you besides getting property values, they can also help you create google maps of the property; there are ways in which they can create an actual map listing of the property so that you can now go on google and use KML graphs and all that and they will attach it so that you can now see the properties just by click of the mouse.
Well, the note buyer plus a virtual assistant equals constant deal flow. Because the banks right now are going through this on going financial crisis and some of these banks have failed and some of them have filed bankrupt so this presents a profitable situation for a note buyer who is trying to be of aid to this bank and making sure that the offer ends up being win-win for everybody because this is the time when which everyone who get into this business and who knows how to get into the business buy, at the right discounts and knows the right strategies to exit the deals. If your goal is to make sure that everybody win, at the end of the day, that’s the best way to go.
So this presents the opportunity for those who actually have the capital to buy non-performing notes involved and by buying in bulky, you get the best discounts and make the best deals for your investors.
So, if you like the content of this video and found it helpful, please go to my blog by using the redirect link, you find that at the very beginning of this document. And if you’re also a note buyer looking for a direct access to asset manager responsible for the sale of non-performing notes involved, please send me an email. My email address is oenaohwo@hireyourvirtualassistant.com
Thank you very much and I look forward to sharing some more content with you in my next video. Thank you.
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