All Forum Posts by: Kalonji Mitchell

Our business has pivoted from originating loans to acquiring mortgage notes. We have identified some notes that are not within our acquisition criteria, and we intend to broker those instead. Below is one of these notes

Loan Overview:

- Loan Type: Non-Performing Loan

- Original Loan Amount: $42,500.00 from 12/1/2006

- Unpaid Principal Balance (UPB): $149,372.74

- Note Rate / Interest Rate: 12.50%

- Maturity Date: December 1, 2036

Current Status: Extreme delinquency (see notes below)

- Origination Date: December 1, 2006

Collateral Information:

- Property Type: Multifamily

- Location: Chicago, IL

- BPO: $378,000

- LTV (Loan-to-Value): 39.50%

- Occupancy Status: Tenant-occupied

Property Details: This solid 3-unit multifamily building is in Chicago’s vibrant Woodlawn neighborhood. Each spacious unit offers 2 bedrooms, appealing to the area’s strong rental demand fueled by its proximity to the University of Chicago, the future Obama Presidential Center, and rapid neighborhood revitalization. With average annual income of $59,400 and steady tenant interest, this property stands as a prime opportunity in one of Chicago’s most promising markets.

NOTE: The unpaid principal balance was originally a second-position mortgage, originated on December 1, 2006. However, the first-position mortgage has been satisfied, the second mortgage remains outstanding. Years of missed payments and accrued late fees have brought the total owed to $149,372.74. Although the owner is aware of the obligation, they are unwilling to pay the full amount. There are no other liens against the property.

Givo Aghasi - There is definte opportunity.

Max Feinberg - Yes, the property is listed.

An opportunity came across my desk that I thought you would be interested in. The property has 23 units and is currently listed. Given my work in the secondary mortgage space, I personally know the owner and lender; therefore, there may be an opportunity to be creative with the purchase of this property.

Property Snapshot:
- Asset Type: Multifamily
- Condition: Substantial renovation required

Why This Opportunity Stands Out:
- Value-Add Potential: Significant upside through strategic renovation
- Cash-Flow Play: Ideal candidate for long-term rental income post-rehab
- Market Fundamentals: Washington, PA continues to show stable rental demand and favorable investment metrics

This deal suits investors seeking distressed or underleveraged assets with the ability to reposition and maximize income. We estimate that post-renovation, the property will generate attractive cash-on-cash returns, especially given today’s rental market.

Let me know if you think this opportunity is of interest to you.

@Dave Blackman

Did you ever get any feedback on this scenario.

@Jacob Dancy This deal looks doable from a private lender's perspective especially if you have a decent down payment. Most can close quickly, as well. The rate may have an on your ability to cash flow. However, you are willing to take that temporary hit in order to acquire the deal, I'd suggest it. 

@John Warren I had to thank you for this suggestion. I'm getting into the multifamily/portfolio space using my private money contact. However, I wanted a viable take-out loan option. I appreciate you sharing. 

@John Warren, I too, am looking for an eviction attorney. I will PM you. Thanks, in advance. 

@Ellie Perlman

Excellent article. Systems are essential, and automating those systems can expedite one’s success. I will be implementing your strategies.

Thank you for sharing.

@Bradley Bogdan Great information. As we venture into the multifamily space, this is something that we would highly consider. We strongly believe in supporting our Vets. Thank you.

@Taylor L. Agrees, IF you utilize their full capabilities. However, I’ve been utilizing the free version for years and it’s intuitive enough to proved a decent sales pipeline flow and marketing option.