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JF1741: Investing In Distressed Debt #SkillSetSunday with Joshua Jaouli

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Jun 9, 2019
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INSIGHT

Why He Pivoted To Distressed Debt

  • Joshua shifted focus to distressed debt after repeatedly losing overpriced asset bids in a frothy market.
  • He now partners with a capital partner and targets distressed credit where clear value and resiliency exist.
ADVICE

Find Distressed Loans With Bank Data Tapes

  • Use FDIC/TARP-style reports to find banks holding nonperforming loans and request their data tape.
  • Reach out to special assets, workout, or credit officers and sign NDAs to receive the loan data spreadsheet.
ADVICE

Always Underwrite Legal Risk And Foreclosure Time

  • Underwrite whether loans are recourse or non‑recourse and include legal costs and timeline for foreclosure in your model.
  • Also factor in judicial vs non‑judicial states because foreclosure timing and costs vary greatly.
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