In 2008, mortgage-backed securities and derivatives’ values were destroyed, after banks had combined performing and under-performing mortgage notes into collateralized debt obligations (CDOs) and sold them to investors. This practice of grouping loans with varying performance, and then getting them AAA rated, contributed to one of the most significant financial crises in US history.  
 
At 7e Investments, we as portfolio managers, invest in under- or non-performing mortgage notes where, often due to reasons such as loss of a spouse, a job, or other reasons, borrowers were unable to make their mortgage payments. Whereas the “typical” course of action is foreclosure of the home and a loss for the lenders, 7e takes another approach, case by case, borrower by borrower, homeowner by homeowner. 
 
7e looks at each situation, not in bulk and not by merging all types of mortgages into a new investment, and decides if this single mortgage note meets our criteria for investment. We look at the borrower’s history and the property, and create a three-dimensional picture of the note. If it meets our criteria and passes our due diligence, we purchase the note at a substantial discount, typically 40-50% of its original value. This saves the bank the headaches of foreclosure, eviction, property maintenance, and an eventual sale, a partial win for the original lender as these are all non-core activities.
 
7e, now the owner of the mortgage note at a serious discount, renegotiates the terms of the note with the borrower/homeowner, calculating a payment plan that is more realistic for the borrower to meet their payments, and for 7e investors to profit from their investment in the note. Our goal is to keep borrowers in their homes whenever possible. This positively impacts the family of the borrower, and their community by not producing another foreclosed home in their neighborhood. 
 
Currently, we are aiming for an 8% annual return (distributed monthly) on your initial investment, a higher return than many bonds and ETFs considered “high-yield.”
 
Because we are not a bank or a company interested in financial engineering, we do not have an incentive to group together many mortgages for maximum short-term gain. Instead, we have a careful, thorough due diligence process seeking the best outcome for our investors, and the  individual borrowers. 
 
Do you want to receive above market monthly income that aims to keep people in their homes? It may be time to take a look at 7e Investments. Plus, if you invest now, you may be eligible for bonus shares of up to 7% of your original investment. 
 
To invest, or simply to learn more, please visit our offering page. Here you can read our SEC-qualified offering circular. 
 
Have more questions? Please send us an email at invest@7einvestments.com.