Deal Analysis and Advice on NPN. Grateful for all feedback!
BP Community-
Thank you for all of the help in advance! Below are two 1st position NPN that I would be purchasing this coming Friday. Any outside advice, perspective, recommendations on exit strategies, areas of concern, etc. would be greatly appreciated! I am contemplating exiting via outright sale of the property, keeping as a rental, or selling via seller carry back.
NPN #1: ON THE LEFT SIDE
The loan is "out of statue" (last payment in 2009) so I am anticipating exiting through the property. Not sure if property is OO or vacant yet.
State: NC
NPN #2: ON THE RIGHT SIDE
The loan would not be foreclosed upon. Borrower has agreed upon a Deed in Lieu. Property is vacant as of now.
| UPB | $53958.97 | $55263.38 | |
| Purchase Price | $5837.00 | $2000.00 | |
| Delinquent Taxes (county) | $2165.78 | $202.00 | |
| Delinquent Taxes (city) | $263.00 | $0.00 | |
| Foreclosure Cost | $3150.00 | $0.00 | |
| BPO | $100.00 | $100.00 | |
| Title Report | $100.00 | $100.00 | |
| Recording of Assignment | |||
| Total Cost of Note | $11615.78 | $2402.00 | |
| FMV | $16500.00 | $5000.00 | |
| Total Cost vs FMV | 70.40% | 48.04% | |
| Cost of Sale (10% of Sales Price) | $1650.00 | $750.00 | |
| Profit | $3234.22 | $1848.00 | |
| Cash on Cash Return | 27.84% | 76.94% | |
| Rent/mo | $400.00 | $500.00 | |
| Rent/year (9 months) | $3600.00 | $4500.00 | |
| Rent Cash on Cash | 30.99% | 187.34% | |
| Total Cost of Both Notes | $14017.78 | ||
| Total FMV of Both Assets | $21500.00 | ||
| Cost of Sale (10%) | $2150.00 | ||
| Profit | $5332.22 | ||
| Total Cash on Cash | 38.04% |