Since the company was founded in 2017, the Principals of Scottsdale REI, LLC have invested in over 1,100 total mortgage loans and properties valued at over $160 million dollars at an average discount of 40%.
This track record has provided superior returns to investors on a consistent basis since the firm began acquiring investments in the Fall of 2017.
Investing in mortgage loans is an ideal acquisition strategy that guarantees a below market purchase price.
Investing in NPL's requires a legal process that leads to foreclosure, then auction where Scottsdale REI, LLC as the owner of the loan takes on the role of the bank. At the auction the loan can ideally get paid off.
If the minimum bid that we set at the auction is not met possession of the property is taken. From that point multiple exit opportunities are available to profit. they include loan modification, wholesale to flippers, fix and flip, seller finance to a new borrower, and more.
Having both multiple investments in a syndication and exit strategies reduces the risk of each investment.
Ideally borrowers that fall on hard times should be given every opportunity to stay in their homes. The first approach on most non-performing loans is to reach out to borrowers and attempt to modify the loan or have it reinstated. Since we purchase loans at a discount we can offer lower payments to the borrowers.
Once a loan is performing it can be sold at a profit.
If negotiations with borrowers do not lead to a re-performing loan, the property itself can be seller financed to other borrowers. In this way we can keep as many homeowners as possible in their homes.