From Risk to Return: Performing vs. Non-Performing Loans

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In this episode, Joseph Ryan Smolarz sits down with Chris Seveney to unpack the world of mortgage note investing, with a deep dive into non-performing loans and what it really takes to succeed in this specialized market. Chris shares how he entered the mortgage note business and why mastering market dynamics matters more than simply chasing yield.

They explore how limited partnerships work in practice, why clear and honest communication with investors is critical, and how today’s economic environment is reshaping opportunities in the mortgage space. The conversation also examines ethical decision-making in distressed lending and the growing role of AI — and where human judgment still matters most.

If you want to understand how non-performing loans work, how to evaluate risk in mortgage investing, and how to build durable investor relationships, this episode is essential listening.

Topics covered:
• How non-performing mortgage loans actually work
• Why market understanding beats guesswork
• How limited partnerships create alignment
• Communicating clearly with investors
• The impact of today’s economy on mortgage investing
• Ethics in distressed lending
• Where AI helps — and where it doesn’t

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