I just exited out of a deal that turned out to be a home run. I’ll start with some words of caution, not all deals turn out this way…. This one was great but please don’t assume this always happens. As you’ll see in this case study you can have a lot of ups and downs with a non-performing note. The video below has all of the nitty gritty details and lessons learned, but here are some of the highlights: UPB: $36,273 BPO: $60,000 Status: 12 months delinquent Acquisition Price: $15,124 Total holding costs, workout expenses: $7,987 Total profit: $22,010 (95% total return, 48% to JV) Timeline: 11 months Surprises: -The loan performed for the first few months -Got stuck with almost $1,600 in water bills -Large cleanout, removed 45 cubic yards of junk from a <1000 sq ft home with 1 car garage -Home was in good shape when we took possession |
| Case Study Link |
