Performing Note Investment

[Judith Richard]

Investment Info:

Single-family residence note investment investment.

Purchase price: $169,000
Cash invested: $169,000

Purchased performing note at a discount for $169,000
Current borrower balance ~$214,000
Strategy - Hold the note for 3 years and cash flow it; Refi borrower out
Estimated cash flow profit: $~72,000
Estimated refi profit of ~$39,000
Total projected profit ~$111,000

What made you interested in investing in this type of deal?

Looking for passive income opportunities secured by real estate rather than the real estate itself.

How did you finance this deal?

My own funds

How did you add value to the deal?

Purchased the note at a discount and will refi borrower out in 3 years

What was the outcome?

Property is cash flowing

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Got BPO on property after offer was accepted

[Chris Seveney]

Quote from @Judith Richard:

Investment Info:

Single-family residence note investment investment.

Purchase price: $169,000
Cash invested: $169,000

Purchased performing note at a discount for $169,000
Current borrower balance ~$214,000
Strategy - Hold the note for 3 years and cash flow it; Refi borrower out
Estimated cash flow profit: $~72,000
Estimated refi profit of ~$39,000
Total projected profit ~$111,000

What made you interested in investing in this type of deal?

Looking for passive income opportunities secured by real estate rather than the real estate itself.

How did you finance this deal?

My own funds

How did you add value to the deal?

Purchased the note at a discount and will refi borrower out in 3 years

What was the outcome?

Property is cash flowing

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Got BPO on property after offer was accepted

 what was the interest rate on the loan? How confident are you that you can get the borrower to refinance? What is the value of the property?