Why Invest In Second Position Mortgage Notes with Bill McCafferty

Investing in non-performing second position notes can be quite risky. For Bill McCafferty, the founder of People’s Mortgage Relief II, doing so is well worth the risk. Being involved in note investing for over a decade, he equips us with the right strategies for managing second position mortgage notes. He discusses the differences in the process of handling first notes versus second notes. For him, being laser-focused and sticking to a well-thought-out process and system within the business are key to handling non-performing seconds.

Learn more from Bill as he shares the importance of sourcing in the notes business, what people fear most in non-performing seconds, buying notes, and running a note investment business.

Bill shares his journey into note investing, his focus on non-performing and re-performing second mortgage notes, and the differences between investing in seconds versus firsts. They discuss key strategies, insights into managing non-performing seconds, the importance of systems, and Bill’s unique approach to asset management.

If you’re interested in learning more about note investing, managing a portfolio, or looking for practical tips to scale your business, this episode is for you. Bill also touches on his new educational platform, designed to help investors gain a deeper understanding of the non-performing note space.

Chapters:

0:00 Intro
0:07 Guest introduction: Bill McCafferty
0:52 Bill’s background and entry into the note business
1:59 Managing non-performing and re-performing second mortgage notes
3:00 Differences between firsts and seconds in note investing
4:32 Exit strategies in second mortgage notes
5:10 How Bill got started in second mortgage investing
7:01 Learning from mentors and keeping processes simple
8:46 The importance of systems and scalability in the note business
10:22 Working with non-performing seconds for investors
12:00 Starting with seconds and the learning curve
13:10 The role of patience in second mortgage investing
15:02 Dealing with foreclosures and legal processes
16:05 Bankruptcy and how it impacts seconds
18:00 The patience game: managing cash flow from non-performing notes
21:30 Real-life example of a second mortgage situation
23:30 The challenges and waiting game with second mortgages
25:00 Costs involved in managing second mortgages
27:05 Differences between lines of credit and fixed second mortgages
28:28 Negotiating with borrowers in second mortgage deals
30:00 Bill’s approach to loss mitigation and workout strategies
33:00 Calculating returns and the challenges with second mortgages
36:00 Current supply and demand in the second mortgage space
39:02 Pricing strategies for non-performing and re-performing second mortgages
48:00 Launch of Bill’s note investing education platform
52:00 The importance of the back office and note business management
56:10 Reporting and communication systems for asset management
1:04:00 Closing thoughts and how to connect with Bill McCafferty

Don’t forget to subscribe and hit the notification bell to stay updated on our latest episodes!




https://www.7einvestments.com

#noteinvesting #passiveincome #mortgagenotes
#PassiveIncome
#MortgageNotes