We have two deals from NE Ohio
Here is one of them
We have recently closed on two assets in Ohio. One is in Cleveland and the other in Akron. You might ask why we get so many in that area of the state. It's because we have a rocking realtor up there. She keeps us in the good hood and helps us find those sweet little under valued deals.
Today we are looking at one asset in Akron. It is a single family (SF) Contract for Deed (CFD). Our Broker Price Opinion (BPO) came back at a Fair Market Value (FMV) of $38,000 and an After Repair Value (ARV) of $50,000-$60,000. The borrower is behind by 8 months and has an Unpaid Balance (UPB) of $31,094. The price of this note is $14,500. There will also be a workout cost ranging from $2,500 to $6,000. We have several workout strategies in place and the returns range from 34% to 180%. We are always looking for JV partners.
If you want to learn more about a Joint Ventureship, call or email me now.
Type: Nonperforming Contract for Deed
Property: Occupied – SF Home in Akron, OH
Fair Market Value: $38,000
After Repair Value: $54,000
Unpaid Balance: $31,094 + arrears
Monthly P&I payment: $296
Monthly Rent: $750
Summary of investment opportunity:
We are buying this asset from a hedge fund. This CFD is a SF home in Akron, OH. The property is a 3 Bedroom, 1 Bath, 1236 sq. ft. house built in 1941. It is located in a moderate rental and a stable resale area. This is a good opportunity for a JV Partner to earn between 12%-60% ROI.
The exit strategy on this note is to contact the borrower and try to reinstate the loan. If we are successful this will dramatically reduce our legal costs and we expect a 35% ROI. Plus they get to keep their home. However, if this fails then we would offer some assistance to move, Cash for Keys or other incentives, and then try to sell the property to another investor for rehabbing. If the property is acquired, we will list it at 90% of FMV or as a new CFD at 100-110% of FMV depending upon the internal condition of the house. If the property does not sell within 60 days, we will rent it at $750 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 to 18 months if we rent it and sell it as a turnkey investment property.
If you are interested in forming a Joint Venture partnership, contact me now or fill out the investor questionnaire.