The Life Cycle of a Non-Performing Note

The life cycle of a Non-Performing Note can lead in many different directions depending on the situation.  As an Investor, you must be willing and able to adapt to the situation at hand.  If you are too rigid and stick to only one strategy, you will miss out on many profitable deals.  You may even lose money trying to fit a square peg into a round hole.  At Oakwood investments, we understand that every Note is different, and every borrower’s situation is unique to them.  

One reason Oakwood Investments focuses on Non-Performing Notes, is that there are so many ways to profit from them. Or as we like to say, there are so many ways to “get to the green”. That will make more sense when you examine the diagram below.  It begins in the purple bin, with the purchase of the Note and winds through the cycle, until it reaches its conclusion in one of several green bins. Hence the saying “get to the green”.  

Though the diagram may appear confusing, notice how many green bins there are. Each green bin represents a different exit strategy.  The more exit strategies an investment has, the more attractive and safe the investment is. The swifter you can navigate your way through the life cycle of a Non-Performing Note, the more profitable your investments become.