The primary goal of Zenith Property Solutions is to buy residential nonperforming notes (NPNs) at 30% to 40% of the value of the underlying real estate asset (primarily first place mortgages) from banks and apply any or a combination of 6 exit strategies to make a quick profit and yield an Internal Rate of Return (IRR) above 10% per deal within a short period of time. The exit strategies include; selling the note to another investor, getting a refinance for the borrower, accepting a shortsale from the borrower, accepting the deed to the property from the borrower in lieu of foreclusure, foreclosing on the borrower and last but not least, reperforming the loan (through a loan modification, forbearance, principal reduction, payment reduction and so on, basically anything that will keep the borrower current on their payment).
How we will find the NPNs
Zenith Property Solutions will be responsible for finding the NPNs, negotiating the discounts with banks, performing the necessary due diligence, closing on the purchase of the notes, applying the appropriate exit strategies, and the management of the notes after we have bought them from banks.
There are three ways we will get the NPNs; the first and primary way is by buying directly from banks in bulk pools, mini pools or one-off. The second is by having brokers bring NPNs to us. The third is by buying from other investors.
How much capital we need
We need capital in the form of equity financing from investors who have a minimum of $150,000 or more readily available. The investors will be equity partners on deals and they are expected to provide the working capital necessary from when the notes are purchased until the exit strategies are applied and a profit is made on the investment. We will be splitting all profit equally with our investors.We will also be getting additional capital in the form of debt financing from lenders offering Distressed Debt Financing.
There is a prime need by the banks and the borrowers for our services and as we speak there are several big Hedge funds like PIMCO, PNMAC and so on, that have adopted a similar business model. The difference between us and our competition will be our high touch approarch to working systematically with the borrowers to deliver solutions to them that are made with their best interests in mind while at the same time making sure that all decisions we make yield the highest profit for our investors.