The Fix
So , think about it . If a borrower could rent out a spare room and cover 90 % of their mortgage payment , wouldn ’ t that be an incredible winwin ?
That would get most mortgage borrowers back on track . Especially if you can modify their loan and roll in any delinquent amounts .
That converts a loan that is on the brink of , or in foreclosure and headed into legal hell , into a strong cash flowing note and more valuable asset for the note holder . It can be kept , or seasoned and resold for great profit thanks to the value add bump .
In other cases , it may even be renting out an air mattress or room on the couch on Airbnb , or renting out the entire home if it is already vacant .
The Challenges
Why aren ’ t all borrowers doing this already ?
Awareness is still a big one . Many don ’ t know they can do it or haven ’ t thought of it . So , education is key . Some haven ’ t really laid out the decision between the inconvenience of renting out a room some of the month , versus losing everything and having to beg to stay on someone else ’ s couch themselves .
Some may feel it is a management and hosting issue , but there are companies that handle that too .
It ’ s worth bringing up , and considering . How many homes and notes could be saved this way ?
Investment Opportunities
Find out more about investing in secured debt and real estate , go to NNG Capital Fund
Image by ErikaWittlieb from Pixabay
ABOUT 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 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 .
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