Note Investing Options
We are continuing our series on diversifying your portfolio through passive investing. Today we're going to talk about win-win investing.
Martin Saenz of CO founded bequest funds with the dual purpose of helping investors grow their wealth and helping mortgage borrowers stay in their homes through mortgage note investing. Who wouldn't like to make passive income while helping people stay in their own homes?
Martin, brings social good into smart investing. Martin is a Managing Partner of Bequest Funds. Renowned as a thought leader in the mortgage note investment industry, Martin is generous with his first-hand expertise, to the benefit of his many clients and followers.
In this episode we’re discussing…
· [2:07] What means Note Investing and it’s kind of asset class
· [3:46] The mission of his company, to help homeowners stay in their homes with payments they can afford
· [5:03] How it works, the common practice they have in place and the risk they handle
· [9:17] The process itself on the Institution states that the person is in foreclosure and they buy a note
· [10:32] The growth of this industry given the equity spikes across the country
· [12:42] The process of how they provide cash flow for investors that go with them and the return rate they have.
· [18:32] He has an asset management team, they do all the bar outreach and the bar workouts
· [19:22] Why it’s a win-win relation within the investors
· [25:33] The reality of companies from large corporations now they’re small business due to the COVID and why this is a good opportunity to invest in.
Martin’s Top Tips
· “Our mission very much is working with the homeowners. So, we'll take those mortgages that are in default, and we'll make reach will make outreach to the bars and work with payment plans”
· “We purchase those mortgages at discounts, we're able to extend some of those discounts over to the bar in the form of forgiveness. We figure out what the borrowers can afford, and we create loan modifications and other creative solutions so that we can prevent foreclosure from happening”
· “We actually put heavy emphasis not only on vetting the property, which is the collateral, we also put a lot of emphasis on betting the bar and their ability to pay prior to purchasing that asset”
· “Our company has purchased $23 million of mortgage debt across the country. So, we're a pretty active player in right now how we have things set up, we have an Income Fund called be quest funds, whereby investors can invest passively into the Income Fund, and receive monthly payments as a result”
· “If you put in $100,000, then it would pay $8,000. And you would divide that $8,000 by 12 months, and that would be your monthly payment”
· “If I'm able to look at someone, and I'm able to say, look, they should be paying 600 a month, but they can pay 400 a month, and I'm still going to do extremely well, from a return-on-investment perspective, then I'm going to take the 400 in the borrower is going to be appreciative, and make their monthly payments”
· “And those that have multiple streams of income, that those that are not solely reliant on an employer, or one stream of income, are going to be the ones that are going to survive. And right now, building multiple streams of income for yourself is about survival”
· “Building streams of income is something everyone can do, everyone knows some skill set, or has some special quality, that they can go and hone into an additional stream of income into in some way. And I just think like the ones that the people that that focus on education, focus on taking action are going to benefit from it”
Mike’s Top Tips
· “It seems like this is a just a really nice way to get that passive income to diversify your portfolio, I always say that you should have at least six different branches of diversified income streams, and especially in passive”
· “t's fantastic that you're helping them, you're also making money, you're doing what you love. And it's just kind of when I've done not with the notes, but some of the other things around that type of thing, giving people second chances in homes”
· “It's so important and you know, some of the books I've read throughout the years it just after goes it beats that in your head at time and time again, you have to rely and work on all these different types of income streams.
Resources from Martin
Website bqfunds.com | Note Investing Made Easier | LinkedIn | Note Investing book
ABOUT MARTIN SAENZ
Martin Saenz brings social good into smart investing. Martin is a Managing Partner of Bequest Funds. Renowned as a thought leader in the mortgage note investment industry, Martin is generous with his first-hand expertise, to the benefit of his many clients and followers. Genuine, loyal, and passionate about creating a better world through profitable business, he works hard to share and spread success.
Together with business partner Shawn Muneio, Martin co-founded Bequest Funds with the dual purpose of helping investors grow their wealth and helping mortgage borrowers stay in their homes. Martin owned and operated multiple successful companies prior to launching Bequest. A successful entrepreneur and real estate investor for over 15 years, he brings a high level of strategy and experience to the Bequest model.
He has directly helped over a thousand families stay in their homes, and countless more through the influence of his mentorship.
Martin holds a BA degree in Philosophy from U.T. — San Antonio, an MBA from Drexel University, and a M.S. in Project Management from George Washington University. Martin, his wife Ruth, and their four children live in the D.C. area. Together, they enjoy exploring the history and natural beauty of state and federal parks and being a part of their church community.