Non-performing notes will throw a combination of good and bad surprises at you. There is a lot of variabilitiy so its pretty much impossible to predict what the retrun on a specific deal will be. But if you do enough volume then these breaks will tend to even out over time. On Friday I ran into both ends of the spectrum.
I woke up to some news that the painters who are working on a rehab job for me are screwing up. They are overspraying light switches switches and failed to prep some of the surfaces properly which is causing problems. At the end of the day I have a general contractor who I know will take care of it, but it adds to my stress and potentially stretches out the rehab timeline longer than I planned. Plus its one more thing that I don’t want to have to deal with. In this case I know the neighbor, who also happens to be a property manager, and he has been keeping an eye on things for me. The general contracfor had previously mentioned he was having the painters redo some work so it wasn’t a complete surprise, but the neighbor was able to give me a lot more detail.
Then about an hour later I received a message from a servicer that a borrower had sent a large wire. This borrower had proven to be extremely untrustworthy over time. The land contract was recently cancelled and I was just waiting for the redemption period to run out and then complete the eviction. Originally the borrower kept saying she was going to get assistance from the state but that never materialized. Right before the hearing where the land contract was cancelled I received a message from the state saying they would pay nearly half of the reinstatement amount, but the borrower would have to put up the remainder first. I figured that’s great but its not going to happen. Then it magically did….
As a note investor you never know what’s going to happen on any given day. So if something goes wrong try not to sweat it too much as the good breaks may not be too far behind.