We Purchase Non-performing, First-lien Mortgage Notes, Secured by Residential Homes
Welcome to AW Notes, LLC. Thank you for visiting our website and your interest in learning a bit about Notes! We purchase non-performing, first lien mortgage notes secured by residential homes. Our #1 goal is always to reach out to the borrower and keep them in the home, if they desire, allowing them to retain their property. Of course there are many other exits strategies but we always start with the borrower. We are based out of Torrance, California but we invest nationwide.
At AW Notes, we have a Joint Venture Program where we partner with our investors to offer passive income or grow their IRA (tax free). Our goal is to offer above average returns, ranging from 10%-30%, over a period of time that may last 12 – 18 months.
Since we purchase these notes at such a discount from banks or hedge funds, we can work with the borrowers to keep them in the home. This is our #1 exit strategy. If the borrower stays in the home and our investors make a great return on their investment, then everyone wins. That is our goal. Of course, many other options exist to exit and still help the borrower, such as a Deed in Lieu of Foreclosure or Cash for Keys with the goal of getting the property back and either selling it or keeping it as a rental.
About Me: Eric Hyde
I grew up in Northern California, started college at the University of Oregon where I ran track and ultimately transferred to UC Davis where I earned my degree. Years later I moved to Southern California where I met my wife, Lily, and started my family. I have two beautiful boys, Aidan & William (thus, AW Notes). After I graduated from UC Davis in 1996, I started investing in real estate in the Sacramento area. Well, the 2008 bubble happened and I learned what I was doing wrong. I wasn’t investing in NOTES! Fast forward to today, 2018, and AW Notes is growing! As a student of Scott Carson, President of We Close Notes, I continue to learn the industry, network with the best and close deals for my investors!
Real Life Example
We purchased a NON PERFORMING contract for deed in Alabama from a hedge fund for $8,500. The borrower still owed over $23,000 which means we bought the balance of $23,000 for the price of $8500! The house was valued at approximately $35,000 and rents of $650 in the area. Principle and interest payments were $250 per month. Well, shortly after boarding the loan with our licensed loan servicing company, we began outreach to see if they wanted to stay in the home. Well their monthly payments started coming in which told me they wanted to stay! After receiving these payments consistently, we were able to sell this loan to another investor as a PERFORMING note. We sold it for $17,800 at over a 14% yield. Our investors were happy, the borrower was happy to stay and we were happy too, obviously! No need to get your calculator out, I’ll tell you what that return on investment (ROI) was…..over 97% ROI. We held that note for only 5 months.
Buying non-performing notes (NPN) is a great way to invest in real estate but without the headaches of fixing a roof or leaky toilet. Our notes are often purchased at 30-50% of the value which gives us flexibility to work with the borrower in order to get them paying again. Often they reinstate but if not, we can modify the loan, ofter cash for keys, deed in lieu of foreclosure or even foreclosure since WE are the BANK. Because of these options and the deep discount, we typically earn a higher than average return.
Did you know you can also invest in notes in your IRA? Many Joint Venture partners are funding these deals from their Self Directed IRA and earning a double digit, tax free return! Click Here (email address) if you are interested in learning more.