The current director of NPL Auction Academy is making a big decision to reveal it.
An authentic textbook on investing in bad debt, with real-world examples!

There has never been an NPL book like this before.
I personally purchased bad debts
Includes actual documents that generated profits through dividends or inflows!!

“Working harder and longer doesn’t necessarily mean you’ll make more money.
“The reason you can’t get rich no matter how hard you try is because the basic rules are wrong.”
- Rob Moore, [Leverage]

Advantages of NPL Investment (Comparison of NPL and Auction)

1.
Advantages of Buying Bad Debt
① The advantage of bad debt is that it can be purchased by a financial institution at a discount on the principal or overdue interest.
② You can receive a mortgage loan using bonds as collateral, and you can receive a higher loan amount compared to the amount actually invested.
③ Purchasing bad debt has the advantage of allowing for a variety of investment methods.
After purchasing bonds, you can resell them or receive dividends through auctions, and if necessary, you can win the bid through inflows.
④ In the case of investment through resale or dividend, the recovery period of the investment is shorter than that of an auction, and the recovery time is also predictable.
⑤ In case of investment in the form of dividends, a third party will win the bid and the investor can receive dividends equivalent to the amount of the right to exercise the claim. If there is a shortfall in the dividends, the investor can exercise the right with the remaining claim by receiving a supplementary statement from the relevant auction company.
⑥ In case of investment through the method of inflow, the capital gains tax can be reduced when selling real estate because the property is acquired through inflow (successful bidding) with the amount of the bond exercise right.
⑦ Since you are participating in the bidding after purchasing bonds rather than bidding at a general auction, the possibility of being selected as the highest bidder is very high.

2.
Disadvantages of Buying Bad Debt
① If the collateral is poor compared to the bond, losses may occur.
In other words, if you purchase bonds without properly assessing the value of the collateral, you will incur losses.

② You can receive a mortgage loan using the mortgage as collateral, but you must pay the mortgage loan interest until the loan is concluded.
③ If the purpose is to attract capital, a large amount of initial funds may be required due to bond purchases.
④ If the debtor files for rehabilitation after the purchase of the bond, the auction may be suspended. (In this case, if a mortgage loan is received, the interest payment period will be extended.)

3.
Comparison of NPLs and Auctions through Case Studies
① Owner and debtor Hong*ok received the apartment for approximately 470,000,000 won on April 29, 2005, and registered the transfer of ownership of only the exclusive portion, but the land rights were not registered, and he received a loan on November 17 of the same year.
② If we analyze the contents of the bond of 2015Ta-Gyeong 25524, the Mi*Nonghyup Cooperative loaned the principal amount of 250,000,000 won on November 17, 2005 and established a mortgage with a maximum bond amount of 300,000,000 won.
③ At the time of transfer of ownership, there were many unoccupied properties, so the commercial space was vacant and interest and management fees began to fall into arrears.
④ The auction was in progress and a lien right of 35,000,000 won was reported from the developer, **Development, under the name of delinquent management fee.
⑤ As the land rights were not registered and the lien rights were exercised, the commercial property with an appraised value of 310,000,000 won was lowered to the lowest price of 106,330,000 won (34% of the appraised value).
⑥ Nonghyup Asset Management Company, the assignee of the bonds of the National Agricultural Cooperative Federation, is in a position where it has no choice but to sell the bonds, considering that the minimum auction price has been significantly lowered compared to the principal amount of the bonds and the late payment fee.
⑦ The amount of the bond exercise right, including the principal of 250 million won and overdue interest, exceeded 460 million won.
This bond was purchased at a discount for 152,000,000 won.
⑧ Although dividends could have been received through bond resale or dividend induction, the bonds were initially purchased for the purpose of inflow.
⑨ Eight people participated in the bidding on June 10, 2016, and the highest bidder was selected with a high price of 97% of the lowest price of 34%.
⑩ Looking at the second place bid, it was obvious that dividends were possible.
Everyone who participated in the bid must have been confused.
I participated in the bidding as a proxy by receiving a power of attorney from the bond purchaser.
⑪ After paying the amount and transferring ownership on August 3, 2016, the unregistered land rights were restored, and after about 10 months of litigation with the lien holder, the possession rights were returned and the matter was concluded by agreement that there would be no mutual claims.
⑫ Currently, it is leased (20 million won deposit, monthly rent of about 1.3 million won), the commercial area is stable, and it can be sold for more than 300 million won, and even with a loan, it is possible to get about 80% of the purchase price (about 240 million won).
Above all, there is no capital gains tax up to the purchase price of 300 million won and the amount including acquisition and registration taxes.

--- p.26 ~ 28