This week we dive deep into loss mitigation, capital raising, relationship building and more.
On this week’s episode, while Robby is off on vacation in Spain, Chase has a great interview with an experienced note investor named Jay Tenenbaum who is also the Managing Director at Prosperity Investment Fund. Jay will actually be presenting at the IMN conference coming up on September 22nd and 23rd as well. He will be featured in a panel entitled “Getting a non-performer to re-perform in this low rate environment; work out modification & rehabilitation strategies.”
Jay used to be a practicing debt collection attorney for 20 years in Southern California. After closing the law practice, he started investing in judgment liens with a focus on real property. He then attended Scott Carson’s Note Buying for Dummies Workshop in August of 2013 which opened his eyes to this different debt instrument which ended up being an easy transition for him based on his past experience. His company has now bought 198 assets with an acquisition cost of over 3 million in just under 3 years.
Some of the topics that they discuss in the note space are:
- Capital raising strategies
- Loss Mitigation
- Relationship building and partnerships when it comes to growing your team
- Seller relationships & some great insight on building those
- Seller Financing strategies
Jay details his experience as a debt collection attorney and how he came into the note business without any prior investors he could easily reach out to. He reflects back on how he was able to raise capital other than his own money.
When it comes to Loss Mitigation, Jay goes over his initial question that he asks the borrower – “How can I help you?” He goes over his strategies on how he is able to achieve a less than 10% default on his loan modifications and the key is to listen. He also discusses a 3rd party credit counselor called Polaris and an interesting story concerning one of his first deals that he worked out with a borrower.
Another great topic they cover are the partnerships and ways that Jay was able to grow his personal note business which include everything from family to close friends to outsourced agencies. Growing up around service based businesses, Jay was able to leverage that experience to build a solid foundation for this service based business and his vendor relationships.
One of the final concepts they cover is the ability to build lasting relationships with sellers. Jay has some great insight here as he has only worked with 12 sellers for the 198 notes they have purchased.
Listen in to the rest of the episode to learn about seller financing strategies with notes and how to build several revenue streams within the same asset!
That’s all for this week everyone and thanks for listening.
If you have any questions, comments or potential deals to send our way, email us at email@example.com.
Listen & Watch this Week’s Show to Learn:
- How Jay Tenenbaum came into the Note Business & was able to purchase almost 200 notes with an acquisition cost of over 3 million in a little under 3 years
- Capital Raising Strategies to employ at your note business
- How an easy conversation can lead to unbelievable profits
- The best way to build relationships with your sellers, vendors, & borrowers
- Seller financing strategies for notes
- And much more!
Featured on the Show:
- Jay Tenenbaum – Director of Capital Investments for Prosperity Investment Fund
- The IMN’s Inaugural Residential Mortgage Notes, Non- & Re- Performing Loans Symposium
- Scott Carson’s Note Buying for Dummies Workshop
- Polaris – a Non-Profit 3rd party credit counselor
- Building several revenue streams within the same asset
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Thanks for listening to our show! We’ll be back next Wednesday morning.
Chase & Robby