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Tax Liens & Mortgage Notes

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Gabe K.
  • Huntington Beach, CA
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Success Story: Note Exit via Trustee Sale

Gabe K.
  • Huntington Beach, CA
Posted Dec 6 2016, 07:19

In March of this year we purchased a non-performing 2nd deed of trust in the Silicon Valley area of CA.  We attempted to work out a loan modification with the borrowers but ultimately needed to foreclose as they were unresponsive. We received a full payout of the loan balance following the trustee sale.

Investment Summary - Foreclosure

Santa Clara, CA

  • Investment Type: Non-performing 2nd mortgage
  • Property Value: $800,000
  • 1st Mortgage Balance: $545,000
  • 2nd Mortgage Balance: $80,290
  • Note Purchase Price: $37,140
  • Expenses: $618
  • Proceeds from Trustee Sale: $80,290
  • Cash-on-Cash Return: $42,532 or 114.5% in 8 months

We believe this outcome is attributable to our extensive research process and detailed due diligence during the note purchase process. Part of this investment was funded by a an IRA account, which means the gains were earned tax deferred.

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