Behind on Payments, Ahead on Equity – Chris Seveney’s Note Strategy Explained

Dave sits down with note investor Chris Seveney to unpack how buying non-performing first mortgages at a discount can lead to win-win outcomes. Chris shares a clear, numbers-based case study: acquiring a $100K delinquent loan for $70K, collecting an upfront reinstatement plus six months of payments, modifying the loan, and reselling it as a re-performing note for ~$80K. They discuss realistic timelines (often 12–18 months), what “bread and butter” deals look like, and the messy, real-world parts (paperwork delays, missed payments, bankruptcy stalls). Chris also explains his “3 Ps” buy box—Person, Property, Predicament—and why he favors owner-occupied homes with demonstrable equity, borrowers facing temporary hardship, and properties that are still lived in. They cover where deals come from (whole-loan trading desks and broker networks), how exits work, and how his fund serves investors with a preferred return (with some share of upside depending on class). Looking ahead, Chris sees more payment distress with high equity—“cash-poor, equity-rich” owners—creating opportunity for creative, ethical workouts (modifications, deed-in-lieu, assisted sales) while protecting downside risk. Time, he says, is the real cost driver.     - Get Interviewed on the Show! - ================================== Are you a real estate investor with some 'tales from the trenches' you'd like to share with our audience? Want to get great exposure and be seen as a bonafide real estate pro by your friends? Would you like to inspire other people to take action with real estate investing? Then we'd love to interview you! Find out more and pick the date here: http://daveinterviewsyou.com/