Many new opportunities are arising out of the changing economy.
As you know, NNG Capital has been repositioning for a shift in the markets for a while. As we see the trends become more prominent it is clear that we are on the verge of many new opportunities in the real estate and finance space.
Here are just some of those investors may find interesting right now…
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Mortgage Lenders Are Going Broke
Rumors are that mortgage lenders are starting to feel the pinch of the recession too. This seems to be showing up in the form of many lenders finding that their credit lines are being cut short.
If they can’t fund loans, they are going out of business.
It doesn’t matter how great they are at marketing, getting loan applications in the door, or processing them through to clear to close. If the money isn’t there to close the transactions they are toast.
This may yield many opportunities to acquire discounted mortgage loan notes from lenders who are desperate for liquidity and cash.
Many construction loan borrowers may also find that they cannot get the draws or loans to finish their building or rehab projects. Which may yield great deals on real estate assets.
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Getting Paid To Convert From Short To Long Term Rentals
Places in Colorado and Arizona are getting so desperate to find housing for their residents and workers that they are starting to pay $10k to $20k to Airbnb landlords to convert back to long term rentals.
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Zoning Changes
Orlando, Florida is among those considering a variety of extreme measures to keep housing more affordable.
Aside from a proposed additional tax on home buyers at closing, this includes ending single family only zoning.
With the ability to build apartments and even high rises among single family neighborhoods, the highest and best use values and cash flow potential for those holding these properties could skyrocket overnight.
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REI Businesses Getting Scared Out Of The Market
The vast majority of today’s investors, and finance and real estate business owners haven’t been around long enough to see what the full cycle of the market looks like.
At the slightest hint of a slowing of growth, some are already bailing out and are running scared. This is even true of businesses which should be set to benefit from these changes.
This is creating opportunities to acquire entire portfolios or businesses at fire sale prices, from very motivated sellers.
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The Energy Cutoff Tsunami
Bloomberg reports that 20M households are now delinquent on energy bills, and could create the greatest tsunami of cutoffs we’ve ever seen. Even more than seen in distress than during the COVID lockdowns according to the US Census Bureau.
This is sad. Especially as we are moving towards cooler weather seasons.
Landlords are also in danger of big legal problems if they allow utilities to be cut off. Even if tenants are not paying the rent.
This can be a great opportunity to step in and help landlords, homeowners, and borrowers. You can bail them out by buying the assets and debt. You can connect renters and borrowers with resources that can help them, while improving the performance of these assets after buying them at discounts.
Investment Opportunities
Find out more about investing in secured debt and real estate, go to NNG Capital Fund.