We cannot guarantee the outcome from any given deal. If you are interested in investing, email with some times we can call you to discuss expectations.
3086 SW Sunset Trace, Circle Palm City, FL – Foreclosure Deal
1st Lien of $155,968 of UPB (Unpaid Principle Balance) + 2 years in arrears
Purchase Price: $55,000 + Attorney Costs + Fees
Time to Foreclose: 18 Months
This clean, 2 bed, 2.5 bath, 1236 sq.ft. condo note was picked up from a hedge fund. It took 18 months to foreclose after several delays by the borrower’s attorney. It sold at the foreclosure auction for $95,000. Net profit of $40,000 was split 50-50 with the Joint Venture partner after expenses and the original investment were paid back. The investment yielded a 24.2% ROI for the funding partner. Deals usually take about 12 months, this was a little longer.
1621 SW 29th Street, Cape Coral, FL – Deed in Lieu of Foreclosure, REO Sale
1st Lien of $143,750 of UPB (Unpaid Principle Balance) + 3 years in arrears
Purchase Price: $55,000
Received Deed in Lieu of Foreclosure and sold for full price in 60 days!
This note was purchased from another hedge fund whereby it was discovered that the home had been listed for short sale for 6 month prior to note purchase with online photos showing the property in good condition and vacant. Upon closing, a signed Deed in Lieu of Foreclosure was found in the loan file and it was listed immediately as an REO sale with a local realtor.
A full price offer of $110,000 was accepted within a week and closed to a retail buyer within 60 days. This earned $99,000 at the closing table, after taxes and closing costs were paid, yielded a $44,000 profit. After paying $55,000 back to the Joint Venture partner, the profits were split 50-50 for a 40% ROI to the investor in only 60 days.
1034 Dearborn Drive, S. Beloit, IL – Loan Modification
1st Lien of $53,560 of UPB (Unpaid Principle Balance) + 4 years in arrears
Purchase Price: $11,000
Loan Modification in 6 Months of $523.44/month + $5,000 down.
After purchasing the note on this occupied home, contact was immediately made with the borrower via direct mail. Borrower had lived in the 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 to reinstate their loan payments of $523.44/month. This resulted in a first year ROI of 74% ($5,000 + 6 months of payments) and an annual return for year two+ of 57.1%. The deal could have been done in 60 days but the previous servicer dragged things out to 6 months. This deal would qualify for an FHA 10-23 refinance as well at 97.5% of FMV.