Week in the Life of a Portfolio Manager (week #50 / 2025)

Happy Friday! Another week of full-time note investing work in the books!

As you may know, we provide portfolio management & run loan sales for a handful of private clients.

Our top client currently holds 2,716 mortgage notes, approximately 300 are cash-flowing and the vast majority are non-performing (NPL). FIXnotes' job is to get those NPLs back on track or sold.

So to help the community run efficient operations of their own (or as a service for other investors), I'm going to start documenting our progress - giving you a peak inside a business that brings in $5MM+ per year in mortgage note revenue (2025 has been a banner year with over $8MM grossed).

So what did we do this week?

Year End Cash-Flowing Audit

On a regular basis it's important to ensure that your performing loans are performing as expected. This month we did a heavy audit of all of our client's cash-flow and initiated a campaign to get any re-defaulted accounts reinstated. Essentially - that means we told the borrowers how much they needed to pay to get caught up, while extending an olive branch for a revised modification if necessary. Thanks

@Bill McCafferty

for heading up this initiative!

Data-Mining for Current Vintage versus Historic Performance

I spent many hours this week pouring over our latest portfolio performance (we call each portfolio a separate "vintage") and comparing this against past efforts gives us a good understanding of how the trade stacks up against our historic results. I prepared two reports (in Excel) including line graphs: "% of UPB Resolved" & "Cumulative Basis Recovered". Here's a little detail about each:

% of UPB Resolved

This report reveals the percentage of unpaid principal balance that was turned into successful loan modification or payoffs within distinct time periods measured from the data of acquisition. Month 0 has a handful of resolutions as the seller occasionally sends "interim payoffs" that clear after our contract cut-off date. Then we measure in 3 months chunks: Months 1-3, Months 3-6, Months 6-9 etc. We plot the results on a line graph to see how the portfolio performs over time against similar portfolios that were acquired in the past.

Cumulative Basis Recovered

This report was a bit more interesting. It is also visualized on a line graph and shows the cumulative earnings for the portfolio divided by the cost basis (what we paid for the assets). We use the same 3-month chunks to see how the portfolio developed over time. As the line approaches 100% we get closer to break-even and then profit on the portfolio. The current portfolio is compared against previous portfolio results over time (spoiler - the latest portfolio is outperforming)

Loan Sales Preparation

We got approval to list our next cherry-pick NPL loan sale in January. We haven't identified the specific assets yet but we have the go-ahead to prep a portfolio of 1st & 2nd position non-performing loans to sell to the Mastermind Accelerator members in about a month from now! Click here to book a Strategy Session to learn more about participating in the next loan acquisition opportunity.

Let me know what you thought of this post in the Poll below!

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