"As a professional investor, the factors that always reign supreme are Security and ROI and distressed debt investing offers both,” - Ricky Brava, Senior Partner at Apollo Financial Group
New York, NY (PRWEB) October 10, 2012
For more information
866 825 9350
Apollo Financial Group finding real value in distressed debt.
Based in New York, the Apollo Financial Group is making a name for itself in financial circles by dealing with distressed debt, more specifically troubled mortgages.
The company uses a proprietary formula to cherry pick default loans from under performing mortgages pools created by some larger banks. Apollo buys such debts with two things in mind:
- Achieving a substantial return on the investment
- Assisting the homeowner who is willing to work things out on the default debt
According to Apollo CEO Dean Anastos, this creates a “win-win” for both Apollo and the homeowner.
“We can buy these distressed debts for very attractive percentage on the dollar,” he said. “Because we then have less invested than the originating bank, we’re able to work with the homeowner to achieve a healthy return on investment. Over the years, history proves distressed debt investing has always outperformed all other types of investment vehicles.”
DEBT INVESTING v. EQUITY INVESTING
What sets Apollo apart from financial institutions that make, buy and sell mortgages as a matter of practice is those firms are investing on the equity side of the transaction. By investing in the debt, Apollo does not concern itself with maintenance of the property. That’s the homeowner’s responsibility.
The real change is visible when a homeowner is not able to meet the terms of the original mortgage. Apollo is able to work with the homeowner in ways traditional mortgage holders can’t, so the homeowner has more incentive to pay off the debt. Loan modifications are much easier to make under a distressed debt sale. Most homeowners will go to considerable lengths to keep their home, Mr. Anastos said.
Because the upfront investment is less, Apollo has room to work with the homeowner to reduce the principal, the interest rate or both.
Apollo Senior Partner Ricky Brava said because this is the way distressed debt investing works, it tends to be more secure than other investments.
"As a professional investor, the factors that always reign supreme are Security and ROI and distressed debt investing offers both,” he said. “At Apollo, we are leading the way in this kind of investing. Our track record shows we have a healthy history of both ROI and keeping the initial investment secure.”
Apollo buys first and second mortgages, understanding there is a higher risk associated with a second mortgage. Because of this, the terms to buy such debts are often more attractive too.
“If you can buy the second mortgage at a sharp discount, then you obviously have less invested than the company which made the second mortgage. Since you have less invested, you can take less in monthly payments and still realize a satisfactory profit,” Mr. Anastos said
Apollo buys and sells distressed debts. These mortgage notes are offered to registered clients. For more information about buying and selling mortgages or the distress debt business in general, visit their Distressed Debt trading website. You may also visit them at their Facebook page .
For more information visit http://www.ApolloFinancialGrp.com or call 866 825 9350.