High Interest Rates’ Impact on Mortgage Note Investing with Chris Seveney

Passive Wealth Strategy Show - Real Estate for Busy Pros

Dive into the high-stakes world of mortgage note investing with Chris Seveney, who's been building wealth off Wall Street and on Main Street since the late '90s. Discover the three P's that Chris swears by when restructuring loans and hear tales of his best triumphs and most challenging lessons, from turning a massive equity gain from his primary residence to the devastating blow from WorldCom. Whether you're curious about the distressed commercial real estate debt market or eager to learn from a pro, this episode promises riveting insights.

[00:00 - 06:01] Opening Segment

• Introducing Chris to the show
• Mortgage note investing involves buying distressed mortgage notes on the secondary market
• How decreasing and then rapidly increasing interest rates have affected the mortgage note market and real estate more generally

[06:02 - 12:42] Debt Distress: How is it Different Today Than 15 Years Ago?

• Most people who have a mortgage think if they miss one payment, the bank's going to come banging on their door and throw them out and foreclose upon you
• Today, most people have 50,000 in equity that they can't buy anything to get the same value or price or same payment
• People are forced to file bankruptcy to try and restructure that debt so they can keep their house

[12:43 - 21:55] The Three P's of Mortgage Note Investing: Person, Predicament, and Property

• Banks have had difficulty selling low-interest-rate loans due to the bid/ask spread not catching up yet
• Track data for trends on what stuff is selling for and whether prices are increasing or decreasing
• Reputation matters as people want to know who they're working with
• Distressed commercial real estate debt is different from 30-year mortgages due to shorter terms

[21:56 - 26:57] Closing Segment

• Best investment: Chris' primary residence
• Worst investment: Investing into a stock called WorldCom
• The most important lesson learned: Focus on what you're good at

Quote:

"Most people with a mortgage think if you miss one payment, the bank will come banging on your door, throw you out, and foreclose upon you. Our average delinquency is probably three to five years." - Chris Seveney

Connect with Chris!

Website: www.7EInvestments.com

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

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