How Investing Works
Invest in confidence.
US banks of all sizes have approximately $248 billion in non-accrual and late mortgage loans that ATTAIN has access to. These mortgage notes offer 7 times the inventory of traditional REO (real estate owned) investments and are secured against actual real estate properties.
Unlike individual real estate projects such as development, rehab, land lording and wholesaling, with ATTAIN – investors have the freedom to not be locked into a certain geographical region as well as being free of dealing with a myriad number of potential pitfalls that comes with land development, market timing, location scouting, obtaining permits with various local government agencies, construction overruns, finding the right tenants, realtor commissions and management fees. These are just a few of the issues that investors can avoid by including ATTAIN in their portfolio because we handle all the painstaking details.
Debt investment is safer than investing in equity.
Unlike equity or eREITs (Electronic Real Estate Investment Trusts) where investors become shareholders in a particular project, our investors invest in loans secured against property.
Debt is the safest type of property investment. It’s senior to the borrower’s equity and acts like a cushion that protects your investment.
There are three distinct advantages to ATTAIN’s platform over traditional investments:
1. Risk – With traditional investment vehicles such as individual stocks and mutual funds, investors are exposed to risk without any security. Even with various equity-based funds, investors have the potential for risky returns but with an inevitable downside. Asset managers utilizing modern portfolio theory (MPT) by including ATTAIN, can construct an efficient frontier to offset market volatility. ATTAIN deals only with real estate note investing where the property is the investors collateral.
2. Return – Another difference between traditional investments and ATTAIN is the net average rate of return. Most vehicles return between 1.5-6% per annum. ATTAIN offers consistent and preferred returns of 10% per annum. On top of this, ATTAIN qualifies as a 721 Exchange that allows property owners to defer capital gains taxes.
3. Technology & Team – With ATTAIN, our management team of data scientists, asset managers and real estate professionals, along with our proprietary machine learning algorithm, analyzes the most profitable notes to purchase.
Why Risk Mitigation is important.
ATTAIN utilizes embedded securitization and risk mitigation strategies. We only invest in first lien positions meaning that our funds are the first to get paid if there is a downtrend occurrence.
ATTAIN’s engineers set parameters: exposure caps, tax liens, the credit of the borrower, run exit models, etc. Compliance and risk management rules are ingrained into our system’s DNA. These constraints set up the borders within which the machine does its work. The system then seeks out patterns, making connections among the data that humans can’t see.
Machine learning is a broad, catch-all term for a wide range of computer algorithms designed to identify repeatable structures and relationships in data without needing explicit instructions about what to look for. ATTAIN’s platform is always evolving to meet market changes.
These are some examples of US property mortgage notes that ATTAIN has worked on.
The Woodlands, Texas
3 bedroom 2 bath single family home. LTV: 51%
Missouri City, Texas
3 bedroom 2 1/2 bath single family home. LTV: 48.9%
4 bedroom 3 bath single family home. LTV: 48%
Circle Palm City, Florida
2 bedroom 2 1/2 bath condo. LTV: 52%
South Beloi, Illinois
2 bedroom 2 bath single family home. LTV: 49%
Cape Coral, Florida
1 st lien UPB of $143,750 + 3 year of rearages. Purchase Price of $55,000. $110,000 FMV