| "Back in the day" buying portfolios of bulk REO and | | | | The true "deals" in ANY business are all made in the |
| Non-Performing Notes (NPN) was relatively | | | | back room. |
| uncomplicated for two reasons. | | | | Ask yourself: "How many deals do we learn of |
| 1. Very few institutions had distressed assets in large | | | | AFTER they became a closed deal?" More than we |
| numbers. | | | | care to count. |
| 2. Relationships were easier to establish and cultivate. | | | | After years of involvement with some 800 pound |
| Today, NEITHER of those facts are true. | | | | gorillas, I asked myself that same question. The |
| If you're reading this, you KNOW that;'s true - | | | | answer led me to a radical business madel change. A |
| otherwise, you wouldn't still be searching. | | | | change so simple, it seemed too good to be true. |
| Since the advent and implementation of TARP, the | | | | That is, until one day a phone call that would change |
| federal government in essence, removed the | | | | my life came. The voice identified himself as a former |
| motivation for banks to ever sell anything. THAT'S | | | | government employee and bank president. He |
| why no portfolios are being sold. Don't misunderstand; | | | | confirmed that my "thoughts" about bulk asset |
| there ARE billions of dolalrs of distressed assets on | | | | acquisitions was not only probable, but possible, wildly |
| the banks books, BUT, since they've been given billions | | | | profitable and occurring each and every day by those |
| in bailout funds, they don't NEED to sell them, | | | | in the "fraternity". |
| Remember, they're sellers too. And sellers want to | | | | He was one of the "fraternity brothers" whom I cannot |
| earn a profit. | | | | describe here. (A visit to my website will give you |
| So, as a qualified investor asks, "How then, DO we | | | | more information.) |
| purchase distressed assets?" | | | | Needless to say, my "new method" has been validated |
| You can no longer use the front door approach | | | | and put into full action doing precisely what it is |
| throwing your weight and financial statements around | | | | engineered to do. Level the playing field by putting |
| thinking you're the 800 pound gorilla and as such, you | | | | profit hungry investors into the exact vehicle that |
| will be give special treatment. In fact, it's just the | | | | satisfies their insatiable desire to become even more |
| opposite. You need to adopt a back door approach. | | | | profitable. |