Message From The Founder
Trust me when I say, the “flipper’s” margins are long gone. There are far too many novice investors buying at prevailing retail prices. By the time the property is rehabilitated and carried until re-sale, the margin of return shrinks to single digits, or all but disappears. Investors continue to strive for yesterday’s returns, which just cannot be achieved in today’s market.
Lunar had the VISION three years ago to purchase Non Performing Loans (NPL’s) rather than buying property.
The purchase of NPL’s at a reasonable discount allows for a “significant margin of safety”. Banks contract with Lunar to handle their Non Performing Assets, which are in the process of being transferred to the liability side of the balance sheet. In order to not jeopardize their credit ratings and maintain reserve requirements, banks must sell off their bad debt. This creates an opportunity for Lunar and it’s investors.
By acquiring these assets Lunar, becomes the beneficial owner of the first secured mortgage on the property. The borrowers are often many years behind on their loans and face foreclosure or forced lock out by the County Sheriff. Lunar provides borrowers with dignified alternatives like “cash for keys”, which incents the borrower to transfer the rights to the home to Lunar. This allows the borrower to avoid the embarrassment and credit implications of foreclosure. Lunar assists in what becomes a far better outcome for the borrower and the community, as a whole. (We have all witnessed these easy to identify homes by their uncut grass, piled up newspapers and general appearance).
Once Lunar takes title, the asset automatically appreciates to the market value. How? Because many of these homes are “underwater” meaning the borrower owes more than what the property is worth. This prohibits a normal sale, as the mortgage payoff would be higher than the net proceeds from the sale. When the borrower turns the property back to Lunar we immediately zero out the borrowers debt and report the loan “satisfied for less than the full amount”. However, Lunar is paying a percentage of the current market value and often that percentage is 35-40% less.
We have access to billions of dollars of this type of inventory to be purchased at a fraction of the current value. You owe it to yourself and your family to take advantage of this opportunity.
John Giorgi, Esq. MBA
Lunar Investments, LLC