Agora Funding Group, LLC

Would you buy real estate labeled as a toxic asset?
What is a toxic asset?

Real estate note investors answer these questions differently than real estate property investors. Most people understand the basic principals of buying and selling physical real estate property and will immediately think that toxic refers to the physical condition of the property and there is damage to the home. However, note investors look at both the physical property as well as the loan controlling the property. Why? Because there may be nothing wrong with the physical property.

Toxic may also mean there was a bad loan written for the property, but the property value itself remains strong pending retail market conditions. Thus creating the opportunity to buy deeply discounted real estate loans well below the market value of the physical property itself.

How does buying deeply discounted notes benefit you? It is possible to buy real estate loans/notes 20-50% below the value of the physical property. Real estate note investors purchase these loans, work with homeowners to get them paying again, thus increasing the value of the note. After 12 months of seasoning, the note can be resold at 80-85% of market value of the physical property. Your purchase of the note investment is secured by the physical property. Unfortunately circumstances will arise where the homeowner simply can't afford to live in the home or refuses to work with the investor and foreclosure becomes imminent. Investor dollars are protected from the sale of the physical property. In some cases, homeowners may not be able to afford the home and just want out, investors have the option of forgiving homeowners for the loan completely in exchange for the keys to the property and the deed.

This is just one of the reasons why people are moving their traditional 401k's and IRA's to Self-Directed IRA's and getting better returns on their money. With your self-directed IRA invested in real estate notes you can expect either of the following:

* Principal and Interest payments from a paying borrower w/terms that results in passive income.
* A note that is increasing in value for potential resale.
* A note with possible property foreclosure that may result in the acquisition of physical real estate property from the note investment.
* Physical property if attained through foreclosure that can be either sold or rented.
* And countless other exit strategies to earn higher returns.....are real estate notes still sounding toxic? or like opportunity knocking?

I was speaking with a listing agent last week and we started discussing real estate property and notes. His comments to me were "Notes are so hard!" This is the natural response of everyone I meet and explains why this market has remained a niche for so many years. I too looked over notes for many years because of hearing the same exact words and feeling they were likely difficult. I beat myself up now, because I didn't look into them further to make my own decision about what was difficult and what was not. Notes are misunderstood by even real estate professionals!

Real estate notes are intangible assets! Buying paper real estate is much less of a headache than buying physical properties. No trash to take out, no clean up, no tenants, but ALL of the benefits of earning tax-free passive income and more.

For Tax Professionals Interested in Real Estate Notes

The Meeting Place for Real Estate Notes. Smart investment alternatives.

Repost! While the stock markets are tanking, a unique opportunity is unfolding as we speak.

Urban Institute: More non-performing loans should be sold to private investors While some prominent figures in the federal government, including Sen. Elizabeth Warren, D-Mass., and Rep. Mike Capuano, D-Mass, have loudly criticized the government’s practice of selling non-performing loans to private investors, a new report from the Urban Institute suggests that selling NPLs to…

Fannie Mae Offers Largest Delinquent Loan Sale to Date: http://www.dsnews.com/news/01-12-2016/fannie-mae-offers-largest-delinquent-loan-sale-to-date

“These transactions are intended to reduce the number of seriously delinquent loans that Fannie Mae owns, to help stabilize neighborhoods, and to offer borrowers access to additional foreclosure prevention options.”
Joy Cianci, Fannie Mae

Real Estate Notes: A Smart Investment Alternative The supply of real estate notes available at discounted prices has not dried up yet.

Wanting to understand real estate notes a little better?
Check out my blog and let me know your thoughts. I'll be adding more and more content so be sure to sign up to keep up with new post. In one post, I discuss a strategy that grows your IRA or 401k Plan. If your sitting in stocks and mutual funds, you can't be pleased with the results.

http://agorafundinggroup.com/blog/

Blog - Agora Funding Group, LLC Real Estate Notes

Actual sample deals have been uploaded to the site. Some things to keep in mind about notes. They are purchases of paper(A mortgage note), an asset, but not the physical property. The ownership of the mortgage note is secured by the property in case of payment default. So the majority of note owners generally don't care where their collateral is located as long as it maintains good market value. Note owners maintain an interest the property, thus they may hold ownership of paper in any state. Remember, you don't own the property, only the note, unless default is imminent.

Check out samples and let me know your thoughts. All questions are good questions so feel free to inbox. Your feedback would be greatly appreciated so that I can make the site better for everyone interested. If this captures your attention, it is only the tip of the iceberg.

Some terms used:
ROI: Return on Investment
COC: Cash on Cash
FMV: Fair Market Value
AVG: Average
NPN: Non Performing Note (see website)
Arrears: a legal term for the part of a debt that is overdue after missing one or more required payments.
SFR: Single Family Residence
JV: Joint Venture
UPB: Unpaid balance of the loan.
Deed in Lieu: To avoid foreclosure, some homeowner will give the note owner the keys and the deed to the property. In return the note owner forgives the homeowner for the entire debt because the note owner has now acquired the property in addition to the note.

Project Available for Bid:

Oak Knoll Lane, Katy TX

Here is a note that was picked up with a Private Investor for $22,900.00 for 60 cents on the dollar. Many investors love Texas because of quick foreclosure times. The value is $37,900.00, and they owe $31,777.66 plus arrears, and $1,341.09 in taxes.
Here are the numbers based on selling for 90% of FMV:

Sale Price: $34,110.00
Total Cost: $24,471.00
Profit: $9,639.00
ROI: 39% split 50/50 or 19.5%
Here are the numbers based on renting for one year:

Average Rents: $648.00 x 12 = $7,776.00
Annual COC Return: 31.7% split 50/50 or 15.85%

Merry Christmas to YOU and YOURS!!!

Thanks for visiting my page and thanks for the likes! My website is about 94% complete and changing every minute. If you would like to see what it's going with Agora before the general release, click on the Sign Up button above or link in the about box and feel free to look around. Remember, it's currently a work in progress so forgive any broken links or content errors. Our launch date is scheduled for Jan. 1, 2016!!! If your unfamiliar with real estate notes, you will learn great information about the other side of real estate. I'm excited about sharing my knowledge with all of you in the coming months. All of your questions and feedback are openly welcomed.