Paperstac's 2021 Mid Year Market Report

This report contains anonymized trade data based on hundreds of
Paperstac.com
note closings during
Jan 1 - Jun 30 2021
. Comparison percentages reference sales data from the previous 6 months.

Investment to Balance

(sale price / unpaid principal balance)
46%
Min
84%
Average
101%
Max
8% higher than previous
Performing
1st position
6%
Min
52%
Average
87%
Max
14% lower than previous
Non-Performing
1st position
27%
Min
54%
Average
93%
Max
1% lower than previous
Performing
2nd position
0%
Min
35%
Average
63%
Max
70% higher than previous
Non-Performing
2nd position

Investment to Value

(sale price / property value)
4%
Min
39%
Average
103%
Max
11% higher than previous
Performing
1st position
1%
Min
21%
Average
53%
Max
16% lower than previous
Non-Performing
1st position
1%
Min
5%
Average
30%
Max
29% lower than previous
Performing
2nd position
0%
Min
5%
Average
11%
Max
77% higher than previous
Non-Performing
2nd position

Sale Prices

(per individual asset)
$4K
Min
$39K
Average
$186K
Max
4% higher than previous
Performing
1st position
$1K
Min
$19K
Average
$143K
Max
4% lower than previous
Non-Performing
1st position
$2K
Min
$30K
Average
$86K
Max
5% lower than previous
Performing
2nd position
$0K
Min
$12K
Average
$50K
Max
93% higher than previous
Non-Performing
2nd position

Deal and Asset Overview

(what is selling and how deals are getting done)

Performing vs Non-Performing

Performing

74% of assets sold

Non-Performing

26% of assets sold

1st Position vs 2nd Position

1st Position

84% of assets sold

2nd Position

14% of assets sold

Mortgage Note vs CFD/Land

Mortgage Note

78% of assets sold

CFD/Land

22% of assets sold

Single Asset vs Pools

Single Asset

94% of assets sold

Pools

6% of assets sold

Escrow vs Direct to Seller Payment

Used Escrow

65% of deals funded

Direct to Seller

35% of deals funded

Used a Collateral Auditor

Yes

85% of deals

No

15% of deals

Industry Insights

(analysis from industry experts)
“It's not surprising that, as house prices rise, more mortgages have equity - often substantial - and investors are willing to pay more as a percentage of the balance while still keeping the risk manageable with a low ITV, I do find it interesting that while the gap between NP 1sts and NP 2nds stays healthy, the price of performing 2nds is almost equal to that of performing 1sts. I would imagine this is due to the fact that a higher rate on 2nds generates a higher yield to the investor even with the same ITB. You can have a great cash flow vehicle but make sure you're doing your proper due diligence. More and more investors, including myself, are using Paperstac's escrow services to add a layer of safety to the transaction.”
Guy Sichel
Guy Sichel
Sunlight Associates, LLC
“My first observation is from the escrow numbers. It looks like maybe 35% are trusting the buyers and or sellers. If you have repeat buyers and sellers, I can see this number going down, but it is nice to have your payment held until you know the deal will go through. - I can see that you have a large portion of Mortgages selling versus CFD's. So I can see that maybe either the CFD's having issues with the moratoriums or people holding on to them and dealing with the problems due to the Covid-19 restrictions. - The audit number I feel like should be higher, but I can see if you are using the platform for a private sale that you may not want it. However, as an investor, I like this feature. It gives a 3rd party viewpoint of the information in the collateral file that you will be getting sent. - I can see that some of these Performing assets are going more for what they should. So maybe investors are taking a yield cut in hopes that they will continue the cash flow. - The NPL's are selling at a higher price as well. I know I bought one higher than I wanted, but I was trying to get more deals. I think this will be the case for a while. With the appreciation values, maybe people can either take the property back or get the borrowers to refinance.”
Joshua Scott
Joshua Scott
Scott's Capital Investments, LLC

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407-930-9749

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