I’m seeking information on finding sources for distressed Buy Here Pay Here (BHPH) loans in Texas, particularly for investment purposes. Does anyone have recommendations on where to look or contacts who specialize in this area?
Distressed BHPH loans are hard to come by and usually require tapping into less conventional channels. Best to start by networking with local repossession specialists and attorneys who have worked on loan-asset repossessions. Many of these deals are sold off in bulk through auctions or small broker networks that specialize in non-performing loans. I’ve seen investment funds and private equity firms have success by partnering with local banks to buy off portfolios of bad loans. Getting a clear picture of each loan’s paperwork and payoff history is critical due diligence before you proceed.
I’ve been curious about this area myself, and while I don’t have the full map, one idea that stuck with me is to broaden your net a bit outside just the usual financial brokers. I once heard that some local attorneys and even repossession firms have their finger on the pulse of what’s available in the distressed asset market. Here in Texas, there’s a kind of patchwork network involved where you might connect with smaller local players who know a lot about the nitty-gritty of these deals, especially in areas with a high concentration of BHPH lots. It might be worth checking in with local investment groups or even some trade associations to see if anyone has come across bulk offers of non-performing loans. Not 100% sure if that’s the route you want to take, but it could open up some options that aren’t advertised in the usual places.
I’ve been keeping an eye on the growing trend of auto finance portfolios turning a bit sour with tighter lending and increased repossessions lately. In Texas, a mix of local auction houses and regional firms seems to be coming up as good stops to find these distressed BHPH assets. Nowadays, due diligence is more involved than ever given the market’s nuance—interest rates are pushing lenders to tighten credit, so getting a real sense of the loan documentation and payment history is key. I would also consider reaching out to state-level agencies that track repos and loan defaults; sometimes they can point you to less advertised bulk offers. The landscape can be as much about who you know as it is about what’s on paper, so expanding your network to include local trade groups and even lenders directly could be beneficial. It’s a tricky market, but the challenges also mean hidden opportunities for those willing to dig deep. 
Based on my experience, tracking down distressed BHPH loans in Texas often means stepping away from the more well-trodden channels. Instead, focus on building relationships with local asset negotiators and tapping into public records where court filings or county auction notices may reveal bulk sales of non-performing loans. I’ve seen local liquidation firms and even small debt collection outfits compile data that offers a clearer picture of each loan’s risk profile. Direct conversations with these players can uncover pockets of opportunity that aren’t advertised in mainstream channels. Do your homework on the promised loan bundles; hidden liabilities are a real risk here.