Historic Cleveland, OH Foreclosure-Fix-Flip - Silverwood Capital
We were given the opportunity to purchase a defaulted 1st Lien Non-Performing note/mortgage on a 2 story, historic building in Ohio City, less than two miles from the Rock & Roll Hall of Fame & the Cleveland Browns Stadium.
We had passed on it last fall due to the price being pretty high for the note. At the time the property was valued @ $70,000 range by Valuation Vision, who's BPOs I take with a grain of salt. I believe the note price was in the $35k range. We passed and went on with out lives.
We ended up seeing it again this year and the BPO was now $33,000.00, and we dug further. There were no recent comps, though the neighbors property 2 doors down sold for $290,000.00, in August 2013, so I knew we were on to something.
We picked up the note for $9,850.00, and covered the past due taxes of $4,479.90 to keep it from being lost. This deal was very hairy as after we ran an O&E Report, we found out there was a $37,001.72 IRS Lien, and 5 State Tax Liens totalling $9,750.02.
Our Foreclosure attorney assured us the liens would be removed after foreclosure, so we deducted the property taxes from the purchase price and it was ours.