We make money with OPM – Other people’s mortgages!
Welcome To Silver Mountain Financial
ABOUT SILVER MOUNTAIN
George Hajimihalis is President of Silver Mountain Financial, LLC. – an operating entity that manages/buys/sells/holds Real Estate and mortgage notes. George is currently a landlord and has been in Real Estate and Commercial Finance for over 30 years, working for Asset Based Lenders including the prestigious Allstate Financial Corp. (ASFN) traded on NASDAQ. George has held professional licenses including Commodities Futures Broker, Life and Health Insurance, Mortgage Broker, and Real Estate agent.
When a homebuyer or a real estate investor borrow money for their purchase, there’s a Cash investor on the other side of that transaction collecting payments and earning interest. Ever heard of Fannie Mae and Freddie Mac? Remember the sub-prime mortgages from 10 years ago? The ones that keep paying are still around, paying like clockwork every month. For those borrowers, the most important thing is the same payment every month, not the interest rate!
THE BENEFIT OF
The benefit of seasoning: Seasoned notes have been around for a while and give you the comfort of being able to see that the borrower is actually making payments. The challenge in investing in these notes can be finding them to buy. Aside from being an investment that is excluded from market fluctuation, some of the main advantages of investing in notes include the passive cash flow (as mentioned above), the level of volume and control, the collateral behind a secured lien, and the versatility regarding exit strategies for the note.
Benefits of Our Services
Volume and Control
As many of us do, banks also own real estate, but they would rather finance properties than own them. Sure, there’s much less, if any, property maintenance involved, and note portfolios can be managed via phone and computer from anywhere. But the main reason is that loan portfolios are more scalable and more liquid than property portfolios, and banks figured this out years ago. For example, it’s much easier to liquidate/sell a note than it is to liquidate/sell an REO.
Unlike other paper assets (stocks, bonds, certificates of deposit, etc.), a note and mortgage is secured by real physical property. Owning a secured lien tied to a property, especially with equity, involves little or moderate risk, mainly because if the note stops paying, you have the option to foreclose on the property and recoup the initial investment. You also have the opportunity to offer foreclosure alternatives to homeowners, who would like to stay in their home. As “homeowners,” borrowers are less likely to vacate their property due to the emotional attachment (or emotional equity) to their home.
Many investors love investing in property or hard Real Estate for all the varying opportunities it provides for making a profit. What most investors don’t know is that almost anything that can be done with a house can be done with a note.
- Flip or wholesale a note (Example: selling as non-performing, as performing, or as a partial)
- Rehab a note (Example: creating a loan modification or workout agreement with the borrower)
- Borrow against the note (Example: Collateral assignment of note & mortgage)
Now that we’ve covered some introductory reasons to consider note investing as an option for your own portfolio, stay tuned, as we’ll be discussing how you can be successful without quitting your full-time job or necessarily having to pay a high priced guru.
Investors: Weigh in! Do you include notes as part of your portfolio? What are your questions about this form of investing?