Patience Is Worth A 1st Year 34.9% Cash On Cash Return!

We picked up this 1st Lien Non-Performing Note in Port Huron, Michigan last year with one of our Joint Venture Partners. When I saw the property, I made a quick offer that was accepted, and we started contacting them to try to work it out.

The prior owners had tried for a while to get them repaying, and I just had a hunch that they wanted to stay by looking at the property. Well kept, grass cut, taxes paid, and the Piece de Resistance, a flag flying out front! Always a great sign. Not sure why our Realtor framed the picture with the neighbors trash can...

We finally made contact with the homeowner, and they had been traveling frequently to California to be with a dying family member. After many letters and calls, we brought in the big guns, our great law firm that we use in Michigan for all of our foreclosures.

As predicted, they got in touch with us and I was able to negotiate a $2,000.00 reinstatement amount, to show some skin in the game, and a 6 month, non-binding forbearance plan at the loan amount of $699.95! Lets go over the numbers.

We purchased the note for $27,500 and have spent $2,248.96 so far for a total of $29,748.96

• Down Payment: $2,000.00
• 12x Payments of $699.96 = $ 8,399.40
• Total: $10,399.40
• Divided by Investment: $29,748.96
• 12 Month Cash On Cash Return: 34.9%

AND we found out Michigan will restart its Hardest Hit Funds in Q2 of 2016, and we plan on applying as soon as possible. This could be another $20,000.00 to $30,000.00 to help pay down the UPB (Unpaid Principal Balance) of the note.

We are looking at a number of other nice Senior and Junior liens if anyone else is interested in working with us. PM me for more info.

Christopher Winkler
Silverwood Capital, LLC