Is Airbnb the Secret to Re-Performing Mortgage Notes ?
Image by InstagramFOTOGRAFIN from Pixabay
By Fuquan Bilal
Could Airbnb be the best tool available to help investors turn NPLs into more valuable , cash flowing reperforming notes ?
My team has done a lot of crazy things to help out our borrowers over the years . We ’ ve acquired tapes upon tapes of nonperforming mortgage notes . We ’ ve been able to maintain an extremely high workout rate . It ’ s great when you are able to help someone keep a roof over their family ’ s head . Especially when that also creates a win for all of the investors involved . That can take going above and beyond , and we do that .
We ’ ve helped delinquent borrowers find resources to get back on track with their utilities and get their monthly finances in order . We ’ ve even helped them get jobs .
Airbnb
Airbnb is expected to be heading for an imminent IPO , with a valuation of almost $ 40B . They have millions of listings and hundreds of millions of guests each month . According to
Airbnb ’ s own stats , the average rent per night in some cities is $ 214 . In many cities Airbnb reports that property owners can achieve 90 % to 106 % of median area monthly rent for a whole 2 bedroom apartment , just by renting out one spare room on Airbnb , around 60 % of the month . Remember that median
74 rents are now frequently much more expensive than mortgage payments .
Meanwhile , in New Jersey , 1 in every 499 housing units was in foreclosure in June 2019 . Statewide , those
foreclosure numbers may be down month over month and year over year , but they ’ re still looking very much like 2008 numbers .
In other places like Naples , FL , bank owned properties have recently surged 150 %.
At the same time we are just coming off peak home values and equity in this cycle . That ’ s something no homeowner should want to lose .
Awareness is still a big one . Many don ’ t know they can do it or haven ’ t thought of it . So , education is key .