Advertise on podcast: The Paper Trail

In this episode of The Paper Trail, host Chris Seveney breaks down the “double squeeze” currently pressuring real estate construction from two directions at once: rising tariffs on building materials and a tightening construction labor market. Drawing from nearly 30 years of experience in construction and development, Chris explains how these forces are changing the economics of new development and why passive investors should pay close attention. Episode Timeline00:00 Tariffs and Labor Crunch 01:44 Tariffs Raise Material Costs 04:00 Labor Shortage Hits Timelines 07:21 Double Squeeze on Supply 08:57 Market Examples: DC vs Florida 10:27 Passive Investor Checklist 13:02 Budgeting and Capital Stack 14:36 Wrap Up and Next Episode Learn More To learn more about how 7e approaches note investing, underwriting, and market strategy, visit: https://7einvestments.com This content is for informational purposes only and is not intended as investment advice.

In this episode of the Paper Trail Podcast, Chris Seveney breaks down how real estate syndication returns change once taxes, fees, and deal structure are fully accounted for. Rather than focusing on headline IRR, the discussion centers on what investors actually keep after understanding their position in the capital stack, the tax implications of debt versus equity, and the impact of layered fee structures. Chris also highlights retirement-account pitfalls such as UBIT/UDFI in leveraged non-corporate deals, multi-state filing costs for K-1 investors, and the importance of using a CPA experienced with real estate and passive loss rules, urging investors to ask sponsors detailed structural questions before investing. 00:00 Welcome and Overview 01:21 Capital Stack Basics 02:24 Debt vs Equity Taxes 04:24 Gross vs Net Returns 06:51 K-1s Depreciation Recapture 10:50 Syndication Fee Breakdown 14:48 Fees vs Waterfalls Promote 19:07 Sponsors Cant Give Tax Advice 22:07 IRA Investing UBIT Trap 24:50 Multi-State Filing Costs 28:33 Choosing the Right CPA 30:42 Wrap-Up Key Questions 34:10 Final Thanks and Sign-Off

In this episode of the Paper Trail Podcast, Chris Seveney takes a practical look at how AI is shaping real estate and mortgage note investing today. Moving past the hype, he outlines where AI is already improving underwriting and valuation, where it may be narrowing investor advantage, and what structural risks are often overlooked as these tools become more embedded in the market. Episode Timeline 00:00 AI Wake-Up Call 00:56 The Good: Where AI Is Already Adding Value 01:53 Faster Property Valuations 02:42 Smarter Borrower Risk Assessment 03:19 The Bad: Shrinking Information Advantage 05:20 Execution Becomes the Edge 06:03 The Overlooked Risk: Chip Dependency 06:56 Taiwan and Supply Chain Exposure 09:17 Avoiding Over-Reliance on AI 09:49 Why Note Investing Remains Durable 10:58 PropTech vs. Fundamental Models 12:08 Final Takeaways and Next Steps Learn More To learn more about how 7e approaches note investing, underwriting, and market strategy, visit: https://7einvestments.com This content is for informational purposes only and is not intended as investment advice.

In this new episode of the Paper Trail Podcast, Chris Seveney breaks down the growing stress in private credit and draws a clear distinction between corporate direct lending and asset-backed mortgage note investing. Chris Seveney walks through what is actually happening beneath the headlines, why parts of the market are showing strain, and how structural differences in collateral, underwriting, and resolution paths can lead to very different outcomes. Episode Timeline 00:00 Overview of recent developments in private credit markets 01:10 Definition and structure of private credit 03:03 Factors contributing to current market stress 04:52 Structural differences in note investing approaches 06:20 Role of asset-backed collateral in credit strategies 09:12 Observations on tech-enabled real estate lender activity 13:24 Considerations when evaluating loan pools 14:18 Summary of key discussion points 16:09 Additional resources and closing remarks

The easy part of a credit cycle is when rising home prices hide mistakes. That phase appears to be ending. In this episode of the Paper Trail podcast, Chris Seveney, CEO of 7e Investments, shares a grounded view of where the mortgage note market sits today and how his firm is adjusting its strategy for 2026. Drawing on direct asset management experience across performing and non-performing loans, Chris explains why today’s environment demands tighter underwriting, deeper operational oversight, and more disciplined execution. While housing stress is not yet broad across the market, it is becoming more concentrated and visible. Liquidity remains available, but it is increasingly selective. Lenders are tightening guidelines, appraisal scrutiny is rising, and the margin for underwriting mistakes is shrinking. For note investors, this shift matters. In prior years, rapid home price appreciation often covered operational errors. Today, asset performance depends far more on borrower behavior, collateral quality, and execution during workouts. Chris also discusses how borrower options are changing. With refinancing pathways narrowing and affordability pressures rising, some borrowers are turning to bankruptcy filings earlier in the process, reducing the number of quick resolutions that investors have become accustomed to. That shift places greater emphasis on hands-on asset management and flexible resolution strategies. A key theme throughout the discussion is time risk. In judicial foreclosure states especially, delays can compound legal costs, extend timelines, and significantly alter expected outcomes. Chris explains why relying solely on foreclosure as a strategy can expose investors to unnecessary risk and why maintaining multiple resolution paths is critical. The conversation closes with a look inside how 7e is adapting operationally, including tighter collateral controls, stronger vendor oversight, and underwriting models that reflect real historical timelines rather than optimistic projections. For investors navigating the current credit environment, the message is straightforward: opportunity still exists, but success increasingly depends on discipline, patience, and operational execution. Topics Covered 00:00 – Welcome and episode introduction 01:34 – Where we are in the mortgage and housing cycle 02:12 – Market stress, liquidity conditions, and lending standards 03:35 – Changes in borrower behavior and workout dynamics 04:52 – Why hands-on asset management matters more now 05:47 – Pricing discipline and evaluating new deals 07:21 – Time as the biggest risk variable in note investing 10:25 – Common mistakes investors make during this phase of the cycle 13:01 – How 7e is adjusting its 2026 strategy 13:51 – Fraud risk, collateral control, and documentation verification 16:05 – What investors should reevaluate in today’s market 18:00 – Why discipline and process matter most 19:21 – Final thoughts and closing

In this episode of the Paper Trail podcast, Chris Seveney, CEO of 7e Investments, breaks down a long-term historical comparison of renting versus owning from 1970 through 2026 and explains why today’s cost imbalance matters for mortgage note investors. Rather than focusing on headlines, Chris walks through decades of data to show how housing costs and rent tend to revert toward historical norms after periods of distortion. The core message is simple: real estate moves in cycles, and disciplined investors position themselves accordingly. 00:00 Buying vs Renting 00:50 Reading the Rent vs Own Chart 01:43 1980s Interest Rate Shock 03:50 Rents Rise and 1998 Crossover 05:09 2000s Bubble and Crash 06:43 Inventory Problem Not Homes 08:28 2012 Recovery to Pre Covid Balance 09:46 Covid Era Price Surge 11:39 Why Buying Makes No Sense Now 14:04 What It Means for Note Investors 16:47 Case Study Smokies Reality Check 19:27 Crystal Ball and Final Caution 20:44 Wrap Up

In this episode of the Paper Trail podcast, Chris breaks down three major political and policy developments being discussed right now and what they could really mean for homeowners, investors, and the non-performing mortgage note space. No political spin, just practical analysis. 00:00 — Intro About Chris & 7E Investments01:30 — Topic #1: Credit Card Interest Rate Caps07:00 — Topic #2: Executive Order on Housing & HUD Loan Sales11:00 — Topic #3: Privatizing Fannie Mae & Freddie Mac15:30 — Early loan defaults & what they reveal about current lending18:30 — Recap & key takeaways

In this episode of the Paper Trail podcast, Chris discusses themes related to note investing with a focus on foreclosure trends. With 10 years of experience in mortgage notes and 25 years in real estate, Chris provides insights into the state of the foreclosure market post-COVID, contrasting it with the 2008 financial crisis. Key topics include foreclosure statistics from 2006 to 2025, varying foreclosure timelines by state, and the impacts of economic factors such as taxes, insurance, and interest rates on foreclosure trends. The episode also delves into how these trends affect note investors, emphasizing the opportunities in the growing non-performing mortgage note space. 00:00 Introduction to the Paper Trail Podcast 00:40 Diving into Foreclosure Trends 02:00 Historical Foreclosure Data Analysis 06:45 State-Specific Foreclosure Insights 11:37 Metro Area Foreclosure Hotspots 15:18 Foreclosure Timelines and Challenges 22:07 Future Market Predictions and Opportunities 24:45 Conclusion and Call to Action

In this episode of the Paper Trail podcast, Chris delves into the intricacies of title insurance, emphasizing its significance for mortgage note investors. Chris discusses the roles of owner's policies and lender's policies, presents real-life case studies of title claims, and highlights the pitfalls of neglecting title insurance. He also shares insights from Marco Bario's valuable article on the subject, stressing the growing importance of due diligence amid increasing fraud in the industry. Chris wraps up by providing tips on assessing title policies when acquiring notes and underscores the necessity of title insurance for every originator. 00:00 Introduction to the Paper Trail 00:41 Today's Topic: Title Insurance 00:55 Insights from Marco Bario 03:00 The Importance of Title Insurance 05:24 Understanding Title Insurance Policies 09:25 Common Title Insurance Issues 13:27 Case Studies and Real-Life Examples 18:45 Final Thoughts and Recommendations 24:30 Conclusion and Farewell

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

In this episode of the Paper Trail Podcast, Chris Seveney breaks down the most common misconceptions surrounding DSCR (Debt Service Coverage Ratio) loans. Whether you’re a first-time real estate investor or looking to scale your portfolio, this no-fluff episode is packed with insights that could save you time, money, and frustration. 00:00 Introduction and Overview 01:04 Understanding DSCR Loans 01:55 Myth 1: Credit Score Doesn't Matter 04:13 Myth 2: 100% Financing 05:56 Myth 3: Only for Commercial Properties 07:55 Myth 4: No Documentation Required 10:06 Myth 5: Funding Rehabs or Fix and Flips 11:59 Myth 6: Quick Closures 13:31 Myth 7: Prepayment Penalties 18:11 Conclusion and Final Thoughts

Understanding Recent Changes in Credit Scores and Mortgage Terms In this episode of the Paper Trail podcast, Chris discusses two significant topics affecting the note investing space: the potential for 50-year mortgages and changes in the Fannie Mae and Freddie Mac credit score requirements. The host explains how the removal of the 620 credit score floor could impact loan qualification and why the idea of 50-year mortgages may not gain widespread traction. Emphasizing the importance of understanding the 'rules of the game,' the host advises investors to stay focused on their business fundamentals and not get distracted by industry hype and external chatter. 00:00 Introduction and Episode Overview 01:01 Credit Score Changes and Their Impact 03:18 The 50-Year Mortgage: Pros and Cons 06:03 Focus: The Key to Successful Investing 11:15 Understanding the Rules of the Game 19:55 Conclusion and Final Thoughts

In this episode of the Paper Trail Podcast, host Chris shares insightful stories from his years of experience in note investing. He reflects on his journey since rebranding from the Good Deeds Note Investing Podcast and delves into two detailed case studies involving complex loan situations. Chris discusses the importance of patience, direct involvement, and the value of understanding both consumer and investor laws. He also emphasizes the necessity of proactive management and communication with borrowers to protect investment interests. As always, listeners are encouraged to interact and learn more about investment opportunities with 7E Investments. 00:00 Introduction and Podcast Rebranding 00:29 Early Podcast Days and Lessons Learned 01:51 The Slow Pace of Note Investing 02:21 Case Study 1: Investor Loans and Extensions 09:24 Case Study 2: Builder Loans and Foreclosure 12:39 Dealing with Difficult Borrowers 18:08 Conclusion and Final Thoughts