Performing 1st Mortgage - $112k Balance for $72,500 - 8% $850/mo

[Jared Irby]

Original Mortgage: $115k ($165k with $50k down)

Current Balance: $112k

Payment Amount: $850/mo

Current Property Value: ~$125k+ (good condition 3/2 brick house on alligator bayou - pretty well maintained)

Interest Rate: 8%

Term: 350 months (approx 321 months remaining)

Note purchase price: $72,500 (LTV at purchase: 64%)

Return Calculations (various payoffs)
Timeframe (mo)	Monthy Payments	Last Principal Payment	Total Payments	Annualized Return	IRR
12	$10,200	$110,976	$121,176	67.14%	67.1%
24	$20,400	$109,605	$130,005	39.66%	35.8%
36	$30,600	$108,119	$138,719	30.45%	26.8%
60	$51,000	$104,769	$155,769	22.97%	20.0%
120	$102,000	$93,858	$195,858	17.01%	15.5%
To Term	$272,441	$0	$272,441	10.31%	13.6%

The mortgagor is currently paying and has been except for a 2-3 month period where he had a job loss but caught up in full and is on the straight and narrow. He wants to refi in a couple of years to get a lower rate. Only real downside I can see with the note is the almost 30-year term, but I think the odds are low it goes the full term. If it did the yield is still well over 13% really hands off.

The seller is the old man who built the house and lives next door. He owner financed the house to the borrower (who put $50,000 down). He is in his 90s. Really nice guy and I think he is trustworthy and honest. I think its a really solid deal that I personally would like to keep, but have a lot of cash invested all around at the moment. Let me know if you want some more details or not!

Jared Irby

251-202-2222