NPL funds with secured claims: the safe Fund there are NPL funds, the in secured claims invest and NPL funds, which invest in unsecured claims. Both variants of interest can be from point of view of the investor. “But if it shows off the security of investment” goes, then the NPL funds with claims secured clearly the arguments on his side. Anyone who deals with the topic of NPL, know that an unsecured claim only arises if the secured claim is recovered. Here is the collateralization usually always on the real value of “Real estate”. The risk to suffer a loss of his landscaped capital is much higher for unsecured claims. Still may not be forgotten, also with unsecured claims, good money can be made if you have a good servicer.
The servicers, who works off the claims, is the key to success with both types of claim ultimately. Often, we’ve been approached on the risk of real estate recovery. Realistically, there is This risk but hardly. Because the one is the real estate investment is currently asked as never before, on the other hand, as in unsecured claims also, each to buying debt of course incoming undergo an assessment. The audit process at a real estate is much longer to fix, as testing for unsecured claims. Still, there is also immediate income from the rental of real estate with the acquisition of real estate. Since typically 80% of the real estate are rented and monthly revenue. These are the purchaser the secured claim of course fully to good.
This is a difference from the unsecured exposure. The unsecured claim arises when the secured claim is recovered. This means, the buyer’s secured the claim has then ever get money, if the buyer of the unsecured exposure just begins to make his any business. The unsecured claim is problematic even if the relationship between Bank and debtor as shattered to consider is. Often, the debtor is yet then “squeezed out like a lemon”. As much sensitivity is required the target that he pays anything to get to the target. Of course this is also the possibility but in both cases economically on the legs to come. Many debtors are open here for solution discussions. The solution conversation leads to success, then the servicer has worked well and ultimately generates revenue for the purchaser.