Capital Gains -

How do you go from comfortable affluence to real wealth? Listen to the Capital Gains podcast, by, with host and professional real estate investor Jonathan Twombly. In interviews with top professionals, we'll discuss alternative investments you might not have known about that can help you go beyond merely obtaining a passive income to growing your asset base and becoming truly wealthy.
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Capital Gains -



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Sep 26, 2017

Entrepreneurs looking for lucrative and impactful investments have an opportunity to solve the mortgage crisis and make massive gains.

Serial entrepreneurs Rick Allen and TJ Osterman are seizing that opportunity. They believe in this real estate investment strategy so much that they’ve built an online tool to help other investors get in the game.

In this episode of the Capital Gains podcast, Rick and TJ show how it’s achievable by detailing their own success and explaining the process for other investors who want to enter this lucrative market.

Why Invest In Non-Performing Mortgages?

For the past five years, they have been purchasing non-performing mortgage loans and returning double-digit profits. Not only that, they have given low-income families the opportunity to keep their homes removing the stress and low confidence that comes with being on the brink of a foreclosure.

Purchasing these seemingly unattractive loans is an opportunity that more and more investors are exploring, and there are educators, resources, and technologies which open the world up to anyone interested in moving into this attractive space.

But, how easy is it to get into? Rick and TJ talk to us about the strategy, how to make that strategy successful for you, and making social responsibility a component of your business.

Earning A Substantial Yield from Untapped Inventory

Five years ago, Rick and TJ were offered the opportunity to purchase their first small balance mortgage loan when a bank agent called them and asked if they wanted a frame duplex. The property had $100,000 of debt attached to it, but they took a chance and bought it for $8,400.

The first five properties they invested in within this market went so smoothly, they couldn’t believe how easy it was. They were contacting borrowers and offering to take their vacant properties off their hands, arranging foreclosure agreements, and paying them for their time.

In one case Rick and TJ acquired a vacant property from a lady who was happy to hand over the keys in lieu of foreclosure. They gave her $100 for her time and sold the property for $28,000.

From contacting the borrower to selling the house, the whole process took 15 days.

The discounts on a mortgage note can range anywhere between 20-50% and can cost from $25,000 to $150,000. Why are the discounts so big? Because no institution has the ability to handle them.

The discounted purchase of the mortgage means that Rick and TJ are able to offer a lowered rate for the borrower. In this episode of the podcast, they say that they have sometimes initially been out of pocket as they work to build the trust with the borrower.

But because of the cut-price they paid out, in the beginning, they are able to create an affordable home for the borrower and still make a double-digit profit from their investment.

Creating Affordable Home Payment Plans For Struggling Americans  

Rick and TJ soon learned that the reward from investing in mortgage notes was more than just financial.

The unexpected but emotional impact of helping buyers to keep their homes was huge. Rick and TJ are passionate about their business because it has the ability to improve the lives of thousands of homeowners. That’s why they launched

Rick and TJ created to help people find buyable mortgage notes. With around $400bn of unpaid principal balance non-performing loans still waiting unclaimed, it’s a market with massive financial and emotional gains to be had.

Borrowers have had the fear of losing their home hanging over them, and investment serves as an opportunity to remove that fear with an affordable housing plan. The pair has the goal of saving 10,000 low-income family homes in the future. Learn more in this episode of the Capital Gains podcast.

Connect with Rick and TJ

Visit for more information on their fund if you are interested in learning more as a passive investor.

Check out where you can buy and sell mortgage notes and learn more about what’s available.

More to come soon on the Money With Meaning website:

Richard Allen on LinkedIn

Richard Allen on Facebook

Richard Allen on Twitter

TJ Osterman LinkedIn

TJ Osterman on Twitter

Papterstac on Twitter


Connect with Jonathan Twombly at

Jonathan Twombly on Twitter

Jonathan Twombly on LinkedIn

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