I had a conversation with a new Note Buyer the other day, and he told me that he was launching himself into buying defaulted mortgages after spending a long time wholesaling properties.

The thing that worried me was when he made the following statement. He told me that the reason why he was getting into the business of buying defaulted mortgages was not only for some good cash flow, but also to keep people in their houses.

I do admit that Humanity counts, don’t get me wrong. But…

Don’t lose sight of the forest for the tree.

Don’t Try to Use Only One Exit Strategy For Buying Defaulted Mortgages

It just won’t work.

You see, you may WANT to pursue A SINGLE exit strategy for the defaulted mortgages you purchase (in this case, he was looking to re-perform all the notes he bought – possibly by modifying them all – and then to hold them for cash flow).

Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages

In order to invest successfully in defaulted mortgages, you need to be like Rafael Nadal.

With an amazing serve, grass court and clay court experience, and a great forehand, Nadal is a well balanced tennis star.

You should have the same approach when you are buying defaulted mortgages. Have the ability to pursue multiple exit strategies at once in your note buying business.

Be careful you don’t “stick yourself” with one note buying strategy.

Buying Defaulted Mortgages – Using Foreclosure as a Tool

Sometimes it takes starting a foreclosure action to get a borrower to cooperate with you in getting a loan modified.

And you might ask why?

The foreclosure action acts like a wake up call to someone who has been missing payments on a regular basis. That in combination with your help in their loan modification may be just what they need to get going to work their way out of their situation.

Don’t fall into the same trap the investor I talked to did.

Don’t think that 1 Exit Strategy to your Defaulted Mortgage Buying business is enough to make you successful.

If you want to do well in the note buying business, you need to be a jack of all 5 Exit Strategies.

Related posts:

1. Things to Research in a Community Before Buying Pre-Foreclosures
2. Buying Dallas Condos
3. Avoid Foreclosure By Negotiating With The Lender
4. How to Stop Foreclosure
5. Tips For Stopping Forclosure