In this episode of the Paper Trail Podcast, host Chris Seveney delves into the common mistakes investors make when bidding on note investments.

He breaks down a top 10 list of these errors, highlighting the complexities of foreclosure processes, especially in non-judicial states.

Chris provides valuable examples and insights, stressing the importance of thorough due diligence, understanding potential delays, and realistic financial modeling.

The episode is a must-listen for both active and passive investors looking to deepen their understanding of the mortgage note investment space.

00:00 Introduction to Note Investing

01:01 Top 10 Mistakes in Bidding on Assets

02:39 Case Study: Borrower A vs. Borrower B

04:11 Challenges in Foreclosure and Bankruptcy

09:17 Real-Life Examples and Investor Pitfalls

20:03 Understanding Non-Judicial vs. Judicial States

21:24 Conclusion and Resources

2026 Real Estate and Non-Performing Notes Predictions

In this episode of the Paper Trail Podcast, Chris shares his top 10 predictions for the real estate and lending markets in 2026. He discusses tighter lending standards, rising defaults, and the importance of being a disciplined operator. Key trends include the tightening of investor space lending conditions, challenges in the multifamily sector, struggles for sponsors operating outside their expertise, a slowdown in fix-and-flip activity, the rise of build-to-rent, increased defaults on investor loans, the complexities of judicial foreclosures, potential declines in home prices in booming states like Florida and Texas, and the predicted growth of 7E Investments. Chris emphasizes the necessity for consistency, strategic focus, and disciplined underwriting in navigating the year ahead.

00:00 Introduction and Recap

00:12 2026 Real Estate Predictions Overview

01:05 Trend 1: Tightening Lending Conditions

04:07 Trend 2: Multifamily Market Challenges

05:42 Trend 3: Struggles of Inexperienced Sponsors

09:01 Trend 4: Decline in Fix and Flip Activity

10:15 Trend 5: Build to Rent Opportunities

13:31 Trend 6: Rising Defaults on Investor Loans

15:59 Trend 7: Owner-Occupied Market Insights

19:10 Trend 8: Judicial Foreclosure Challenges

23:52 Trend 9: Home Price Declines in Key States

26:18 Trend 10: Growth Projections for 2026

27:47 Conclusion and Final Thoughts

In this episode of the Paper Trail podcast, Chris reviews his 2025 predictions and evaluates his accuracy, covering essential aspects such as interest rates, home prices, mortgage defaults, and the overall economy. He reflects on the media's portrayal of real estate, assesses the impact of interest rates and home pricing, and provides an in-depth analysis of mortgage defaults and delinquencies. The episode also predicts future market trends and emphasizes the importance of real estate experience.

Additionally, Chris touches on short-term rentals, multifamily properties, seller financing, and the economic pressures facing households. This reflective analysis sets the stage for understanding current market dynamics and future forecasts in real estate.

00:00 Introduction and Episode Overview

00:42 Reflecting on 2025 Predictions

02:01 Interest Rates Analysis

04:08 Home Prices Trends

07:38 Mortgage Defaults and Delinquencies

11:41 Economic Pressures and Household Impact

15:58 Short-Term Rentals and Market Shifts

23:34 Fix and Flip Investor Loans

27:24 Macro Observations and Real Estate Trends

31:43 Conclusion and Future Predictions