CFD CASE STUDY IN INDIANA 76% ROI!
Case Study of our Kendallville, IN CFD
Ironside Investments purchased this note in October 2017. This is a 4 bedroom 1 bathroom home boasting 1876 sq feet near the fairgrounds in Kendallville, IN. We had some trouble reaching the borrower at first. After about a month our servicer made contact and found out the borrower wanted to stay in their home. We came to an agreement in December for the borrower to make all the back payments in January which they promptly did. This borrower has steadily been making payments since January. The servicer handled all of the paperwork, borrower outreach and we collected the monthly payment. We recently sold our CFD after only a week of being on the market. Here are the numbers:
Original Loan Amount: $ 42,700.00Loan Origination Date: 12/09/2013
First Payment Due Date: 01/01/2014
Last Payment Date: 9/27/2018
Current Loan Balance: $ 41,802.77
Current Interest Rate: 9.900%
Current P&I Payment:$ 371.57
Current Escrow Payment:$ 30.43
Maturity Date:12/01/2043
Term Remaining: 302
Loan Type :CFD
FMV: $87,500
The Workout
We picked up this asset for $18,500 ( 44% of UPB)
Expense Cost: $2000 (Includes, servicing, initial due diligence, forced place insurance, back taxes and misc)
Contingency Fund $2,500
All in Cost= $23,000
8 Months of Payments = $2968
Reinstatemet fee from borrower = $2000
Total Income received $4968
We sold this property after 1 year as a re-performer for $35,500 (Approximately 85% of UPB)
$35,500 + $4968 = $40,468
Total ROI = 76%
We're excited with how this one turned out and can't wait to see what we will do with our next one! What are some of your best note deal scenarios?
Ironside Investments is a veteran owned company out of Fuquay Varina, NC. We specialize in finding and purchasing Non-performing notes and rehabbing borrowers to help them stay in their homes. We focus on Single Family Residential and commercial loans throughout the United States.
We have been investing in real estate since 2013.
Ironside Investments partners with clients who are looking to make higher than average returns using their Self-Directed IRA's. Our exit strategies include reinstatement, forbearance and modification, Deed in Lieu, Foreclosures and Renting out these properties. These strategies allow us to provide stellar returns within a 12-18 month period with security backed by the asset.
http://www.IronsideInvestments.net
Natasha Hunter
What is note investing? You've heard of rehabbing a home? Well we rehab borrowers who have defaulted on their promissory notes. This allows us to help the borrower with their desired outcome whether they would like to stay in the home, lower their payments or walk away from the property without harsh credit consequences.Feel good about your money! Make it a win-win situation!
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