Inside Performing Second Mortgages: Junior Liens, Private Credit, and Cash Flow | Shawn Muneio
Summary
Sean Munyo, co-founder of BeQuest Asset Management, discusses his transition from tech to real estate debt and the launch of his Regulation A+ fund. The episode details their strategy of buying performing second-lien mortgages that fall out of securitization, focusing on low combined loan-to-value ratios to mitigate risk. Munyo explains the fund’s unique C-corp structure, which allows investors to receive simple 1099s instead of complex K-1s while earning 5-9% returns. He also covers the ease of purchasing bonds through their e-commerce platform and shares insights on the current private cr…
Topics discussed
Introduction and guest background overview
Sean's unique background in tech and real estate
Entering the non-performing loan market in 2015
Founding BeQuest and the shift to performing credit
Current strategy: buying performing second liens
The securitization process and sourcing assets
Credit box details: LTV and equity coverage
Deal flow and buying seasons
Default rates, modifications, and foreclosure risk
Fund structure: Regulation A and bond issuance
Tax benefits: 1099 vs K-1 and oversight
How to buy: e-commerce platform vs traditional brokers
Discussion on commercial NPLs and sourcing strategy
Closing remarks and show notes
Listen ad-free on Castria