Podcast
The Paper Trail
Hosted by Chris Seveney · EN
Welcome to The Paper Trail, where we follow the journey—my journey—through the world of mortgage note investing. I'm Chris Seveney, and after years of buying, managing, and selling notes with 7e Investments, I'm here to share the real stories behind the deals—what went right, what went wrong, and what I wish I knew earlier. From non-performing loans to seller financing to private lending, this show is about more than strategies—it’s about learning to follow the paper trail and doing the due diligence that separates the pros from the rest. Let's hit the trail.
24episodes
Episodes
Newest firstAll episodes
358 | Tariffs, Labor Costs, and the Double Squeeze on Real Estate
2w ago00:17:02Tap to summarizeIn 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 Crunch01:44 Tariffs Raise Material Costs04:00 Labor Shortage Hits Timelines07:21 Double Squeeze on Supply08:57 Market Examples: DC vs Florida10:27 Passive Investor Checklist13:02 Budgeting and Capital Stack14:36 Wrap Up and Next EpisodeLearn MoreTo learn more about how 7e approaches note investing, underwriting, and market strategy, visit:https://7einvestments.comThis content is for informational purposes only and is not intended as investment advice.
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357| The Tax & Fee Anatomy of a Real Estate Syndication
Apr 2200:35:27Tap to summarizeIn 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 Overview01:21 Capital Stack Basics02:24 Debt vs Equity Taxes04:24 Gross vs Net Returns06:51 K-1s Depreciation Recapture10:50 Syndication Fee Breakdown14:48 Fees vs Waterfalls Promote19:07 Sponsors Cant Give Tax Advice22:07 IRA Investing UBIT Trap24:50 Multi-State Filing Costs28:33 Choosing the Right CPA30:42 Wrap-Up Key Questions34:10 Final Thanks and Sign-Off
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356 | AI IN REAL ESTATE: The Good, The Bad, The Ugly
Apr 100:15:04Tap to summarizeIn 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 Timeline00:00 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 StepsLearn MoreTo learn more about how 7e approaches note investing, underwriting, and market strategy, visit: https://7einvestments.comThis content is for informational purposes only and is not intended as investment advice.
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355 | Private Credit Is Cracking, Here’s Why We’re Not In That Trade
Mar 2500:18:02Tap to summarizeIn 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 Timeline00:00 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
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354 | We Are Entering The Uncomfortable Cycle Of Mortgage Note Investing
Mar 400:20:41Tap to summarizeThe 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 Covered00:00 – Welcome and episode introduction01:34 – Where we are in the mortgage and housing cycle02:12 – Market stress, liquidity conditions, and lending standards03:35 – Changes in borrower behavior and workout dynamics04:52 – Why hands-on asset management matters more now05:47 – Pricing discipline and evaluating new deals07:21 – Time as the biggest risk variable in note investing10:25 – Common mistakes investors make during this phase of the cycle13:01 – How 7e is adjusting its 2026 strategy13:51 – Fraud risk, collateral control, and documentation verification16:05 – What investors should reevaluate in today’s market18:00 – Why discipline and process matter most19:21 – Final thoughts and closing
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353 | How Cost of Homeownership May Lead To An Increase in Non Performing Mortgages
Feb 2500:22:05Tap to summarizeIn 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 Renting00:50 Reading the Rent vs Own Chart01:43 1980s Interest Rate Shock03:50 Rents Rise and 1998 Crossover05:09 2000s Bubble and Crash06:43 Inventory Problem Not Homes08:28 2012 Recovery to Pre Covid Balance09:46 Covid Era Price Surge11:39 Why Buying Makes No Sense Now14:04 What It Means for Note Investors16:47 Case Study Smokies Reality Check19:27 Crystal Ball and Final Caution20:44 Wrap Up
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352 | How Political Policy May Reshape Mortgage Note Investing
Feb 1800:21:10Tap to summarizeIn 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
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351 | The Foreclosure Shift and Trends Reshaping Todays Market
Jan 2100:25:07Tap to summarizeIn 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 Podcast00:40 Diving into Foreclosure Trends02:00 Historical Foreclosure Data Analysis06:45 State-Specific Foreclosure Insights11:37 Metro Area Foreclosure Hotspots15:18 Foreclosure Timelines and Challenges22:07 Future Market Predictions and Opportunities24:45 Conclusion and Call to Action
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350 | The Importance of Title Insurance
Jan 1400:25:26Tap to summarizeIn 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 Trail00:41 Today's Topic: Title Insurance00:55 Insights from Marco Bario03:00 The Importance of Title Insurance05:24 Understanding Title Insurance Policies09:25 Common Title Insurance Issues13:27 Case Studies and Real-Life Examples18:45 Final Thoughts and Recommendations24:30 Conclusion and Farewell
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349 | Common Mistakes Investors Make in Non-Judicial State
Jan 700:22:22Tap to summarizeIn 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 Investing01:01 Top 10 Mistakes in Bidding on Assets02:39 Case Study: Borrower A vs. Borrower B04:11 Challenges in Foreclosure and Bankruptcy09:17 Real-Life Examples and Investor Pitfalls20:03 Understanding Non-Judicial vs. Judicial States21:24 Conclusion and Resources
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