Example Deals

Below are a few sample deals that helps illustrate the concept of buying non-performing real estate notes and making them profitable. Almost all deals we purchase are non-performing real estate loans.

3086 SW Sunset Trace – Foreclosure Deal

This real estate note was foreclosed on and yielded a 24% profit.

1st Lien UPB (Unpaid Balance) of $155,968 + 2 years rearranges

$55,000 Purchase Price + Attorney Costs + Fees

$100,000 FMV (Fair Market Value)

18 Months to Foreclose

We picked up this clean 2 bed, 2.5 bath, 1236 sq ft condo note from a hedge fund. It took us 18 months to foreclose in Florida after several delays by the borrower’s attorney. We sold it at the foreclosure auction for $95,000. We netted a $40,000 profit that we split with our Joint Venture partner on a 50/50 split after expenses/investment was paid back. The investment yielded an annualized 24.2% ROI (Return On Investment) for our funding partner. This deal took a little longer than our normal 12 month time frame.

1034 Dearborn Dr, S. Beloit, IL – Loan Modification

This loan modification deal resulted in a profit of over 50%.

1st Lien UPB (Unpaid Balance) of $53,560 + 4 years of rearranges

$11,000 Purchase Price

$35,000 FMV  (Fair Market Value)

Loan Modification in 6 Months of $523.44 month + $5,000 down.

We purchased this note on this occupied home and made immediate contact with the borrower on our first direct mail piece. Borrower had lived in home for 18 years and continued to pay taxes on time. They had been attempting to do a loan modification for 4+ years but their loan had been sold several times.

Borrower was willing to bring $5,000 to the table for us to reinstate their loan payments of $523.44 per month. This resulted in a first year ROI (Return On Investment) of 74% ($5K + 6 months of payments) and an annual return for year 2+ of 57.1%. We could have had this done in 60 days, but the servicer dragged things out to 6 months. This deal would qualify for a FHA 10-23 refinance as well at 97.5% of FMV (Fair Market Value).

1621 SW 29th St, Cape Coral, FL – DIL REO (Deed In Lieu Real Estate Owned) Sale

This Deed in Lieu of Foreclosure deal resulted in a 40% profit.

1st lien UPB (Unpaid Balance) of $143,750 + 3 year of rearranges

Purchase Price of $55,000

$110,000 FMV (Fair Market Value)

Received Deed in Lieu of Foreclosure and sold full price in 60 Days!

We purchased this note from another hedge fund and discovered that the home had been listed for short sale 6 months prior to our purchase with online photos showing the property in good condition and vacant. Upon closing, we discovered a signed Deed In Lieu of Foreclosure (DIL) in the loan file and we were able to list it immediately as an REO (Real Estate Owned) sale with a local realtor.

We received a full price offering of $110,000 within a week and closed on a sale to retail buyer in 60 days. We ended up netting $99,000 at the closing table after taxes and closing costs were paid yielding a $44,000 profit. We paid back the investment of $55K to our JV (Joint Venture) partner first and split the profits 50/50 yielding in a 40% ROI (Return On Investment) to our investor in 60 days.