Individual investors can now bid on notes on a new website, BigBidder.com. Newport Beach, California-based BigBidder.com throws out the traditional business-to-business model of buying and selling mortgage debt notes. BigBidder.com offers open access to qualified investors to purchase individual or pools of notes secured by real estate. Investors can bid on mortgages, deeds of trust, land contracts throughout the county.
Buying and selling notes have been a way for investors and institutional firms to make money for decades. Offering online auction of notes is a move towards an innovative way for many to profit and help in rebuilding the secondary mortgage market. The creators of BigBidder.com, the LFC Group of Companies, have spent decades in the commercial and residential online real estate auction businesses. Paul Lyons, SVP at LFC, explained, "For years institutional firms and savvy investors have bought and sold notes for profit and to maintain cash liquidity. Were breaking away from the traditional paradigm with this powerful tool allowing individual qualified investors and small investment consortiums to diversify their portfolios by investing in notes via a fair and transparent retail process."
John Kohler, managing director at 12th Street Capital, a secondary market investment firm specializing in mortgage-backed securities (MBS), said, "BigBidder.com fills a void in the market for notes. The BigBidder.com business model is unique in the way it delivers price discovery to the individual investor, which is key to getting their participation. And I think institutional sellers will see BigBidder.com as an efficient way to reach that broader retail audience and improve liquidity in their product."
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