We are Back from Napa!!
A long weekend with
Scott Carson's Mastermind Group
and that means
Lots of wine and lots of tapes and tons of business ideas with other note investors. I'd say I'm exhausted, but I'm pumped. I've got more wine for my racks and more deals to bid on. Check out this one below. The Due Diligence is done and we will be funding it next week. If you are interested in doing a Joint Venture on this one, shoot me a message. Here are the details
Type: Nonperforming 1st position note
Property: Secured Vacant – SF House in Akron, OH
Unpaid Balance: $73,351 + arrearages
Monthly P&I payment: $381.76
Note Purchase: $37,000
Monthly Rent: $850
Summary of investment opportunity:
We are buying this asset from a hedge fund. This mortgage note is on a SF home in Akron, OH. The property is a 2 Bedroom, 2 Bath, 832 sq. ft. Ranch style home built in 1951. It is located in a moderate rental and a stable resale area. This is a good opportunity to earn between 10-25% ROI.
The exit strategy on this note is to contact the borrower, who lives in Florida, and attempt to get a Deed in Lieu instead of proceeding with a foreclosure. If we are successful this will dramatically reduce our legal costs. Once the property is reacquired, we will list it at 90% of FMV or as a new “contract-for-deed” (CFD) at 100-110% of FMV depending upon the internal condition of the house. External repairs are estimated at $2,000. If the property does not sell within 60 days, we will rent it at $850 to generate cash flow for 6 months and then sell it as a turnkey investment property at 100% FMV. The timeline for this investment is expected to be 6-9 months if we sell it, or up to 12 months if we rent it and sell it as a turnkey investment property.
Estimated workout costs: Foreclosure: Ohio has initiated new laws to speed up foreclosures on vacant properties. Assume 3-4 months for Deed in Lieu + 1 month rehab process: $6,000 (includes approx. $3500 for foreclosure attorney, $500 servicer fees, $500 document fees and $1,500 servicing fees)
AJA Realty Investments is seeking a joint venture partner to fund this note. Projected returns are not guaranteed.
If you are interested, please contact me.