Turn your borrower (who has gone through bankruptcy) into an investor?
What the heck could this mean!
A good percentage of my borrowers have gone through bankruptcy. When someone goes through bankruptcy, their entire financial life is made public on the Public Access to Court Electronic Records, better known as pacer.gov
Many people have some form of retirement plan, IRA 401K etc, which is listed in the voluntary petition.
When I see this I go right into the conversation with the borrower “How are your returns in your retirement account?”
I have never once been asked how I knew they had one, they were too fired up to tell me about the losses they have incurred over the years.
Instead of the pity party they were expecting…
…I tell them how they can get an immediate 50% return on their investment using the equity in their home.
They are all ears at this point!
I tell them “every 1 dollar they give us toward their mortgage, we will give them $1.50 in pay down of their debt which translates into equity in their home!” This is only offered once and they have 15 days to fund this deal.
At this point they are scrambling to figure out how to pay us which is a good thing!
$10k in payment 15K in payoff, 20k payment 30k payoff – We offer them this deal, as the bank.
Who else is offering them this type of deal!!