There’s an avalanche of distressed properties being sold as notes from banks to hedge funds – and ultimately small investors. Even though the numbers are staggering, you won’t find this news in the headlines.

That’s great news if you’re prepared to take advantage of it. Here’s what we know: In January 2016, Fannie Mae sold $1.35 Billion in non-performing assets (distressed properties headed for foreclosure) to hedge funds. Freddie Mac came in likewise with a record high sale of $1.6 Billion.

That’s a crazy amount of mortgages that still aren’t being paid by their borrowers, and it represents a continuing trend that a smart Self Directed IRA investor should be positioned to take part in. (Naturally, you can buy these outside your IRA too!)

Hedge funds will take pools of these mortgages and sell them to smaller investors before they ever show up as foreclosures on the courthouse steps or on the MLS.

All told, experts anticipate about $21 Billion of these assets to go on the market in this year ALONE, topping out sales of $18 Billion in 2015.

I’ve already gotten several of these note pools across my desk, and I can’t possibly buy everything that’s there. These assets sell for pennies on the dollar, and they get scooped up quickly.

These are problem properties waiting for a solution by “rehabbing” the loan. My goal is to actively manage these loan assets in one of several ways by:

  • working out a deal with the borrower to make it re-perform
  • taking back the property through foreclosure
    • creating a turnkey rental that creates monthly cashflow
    • working with a rehabber to create a fix and flip

Each home, each situation, and each mortgage is different, but the end result is a great profit for your Self Directed IRA.

What should you do to take part in this? Tell me if you’re interested in scooping up any of these assets. Simply drop me an email with your contact information and I’ll follow up with you.

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