If you saw Part 1 last week, you know that we have recently closed on two assets in Ohio. One is in Cleveland and the other in Akron. In Part 1, we talked about our Akron asset. Now we'll talk to you about this little ole note in West Cleveland. It is a single family (SFR) Contract for Deed (CFD). Our Broker Price Opinion (BPO) came back at a Fair Market Value (FMV) of $15,000. To be honest with you, I'm not even concerned about the After Repair Value (ARV) on this one. Why you ask? In Part 1, I told you I had a rocking realtor up there. She tells me that the church next door doesn't have any parking, so we will approach them to see if they want the land. If they do not want it, then she already has an investor or two lined up to pay $15,000 "As-Is". The borrower is gone, the house is secure and in good shape, and as I said before, this is a CFD, so there isn't even a foreclosure. This will be quick and cheap and we'll have the money back in the bank account in a couple of months or less. The price of this note is only $5,500. There are some back taxes and with workout costs we'll be into it for about $9,200. This isn't a home run. It might not even be a double. It's more of a sloppy single, but we are on base and it is looking good.
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