Re: Mortgage Portfolios - Posted by Doug Rink
Posted by Doug Rink on February 17, 2002 at 16:59:44:
I’ve been doing this for about 5 years and I am also a mortgage banker. I have found that buyers for seller held notes and “secondary morgage market” buyers to be two completely diff. animals. I prefer to deal with the seller held guys quite frankly.
Unfortuantely, we haven’t created enough volume of business in the note business to attract the likes of the wall street BIG money.
So while in theory the concept of brokering small banks loans to larger pools will work and might be a great nich, you’ll be suprised to learn that there aren’t many “wisords behind the green curtian” with the money as there once was. Since you know how to originate loans, you might could just “option” the portfolio of loans you find and try to “refi” them for the seller.
I have done this. Since most seller’s know they have to “discount” their loans to sell them and you buy them one-at-a-time anyway, why not develop a wharehouse line of credit (wharehouseline.com is good) and individually refinance the loans. You can make a great spread by having a lower “strike price” with the seller and you and I both know we can earn PAR-PLUS pricinging in the mortgage origination business which is UNHEARD of in the note business alone. Hope this helps.