A Quick Turn Around In San Antonio

Purchase Date: 13 OCT 17

JV Funding Date: 17 OCT 17

Sale Date: 30 NOV 17 

Closing of Books: 26 DEC 17

Note Cost: $23,221.03

JV Workout Costs Contribution: $4,600.97

Total Investment: $27,822

Sale Price: $33,640

Check at Closing: $33,640

Payments from Borrower: $345.66

Profit after Expenses: 11,138.70

50/50 Split: $5,569.35

JV Partner ROI: 20% FOR TWO MONTHS

We purchased this note in October of 2017 as a semi performing note for 55% of UPB as part of a pool purchase. During our due diligence, we offered a list of notes to FNAC out of Michigan. They made us some offers ranging between 80-85% of UPB. We accepted their offer and after we closed on the purchase, we started getting ready for the sale of the note. During that time, we collected a payment or two on the notes we were selling. We barely touched the workout funds at all, so we had very little expenses, which is why the profits were higher. Our biggest problem for our investor was what to do with the cash she just invested. Now she has to find another investment.

Want to know more about becoming a JV partner? Send us an email @ adam@ajarealtyinvestments.com

Solid Returns in St Louis

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14% ROI

St. Louis, MO

Purchase Date: 20 SEP 16

JV Funding Date: 20 SEP 16

Sale Date: 13 OCT 17 

Closing of Books: 13 NOV 17

Note Cost: $20,975

Workout Costs Contribution: $8,025

AJA Investment Contributions: $23,644.33

Total Investment: $52,644.33

Sale Price: $71,000 (with some buyer credits)

Check at Closing: $60,765.58

Profit: 8,121.25

50/50 Split: $4,060.62

JV Partner ROI: 14%

In the Fall of 2016, we bought a note in St. Louis. The borrower was deceased, so the exit strategy was pretty well defined since we did not see a Deed in Lieu in the future. We took the property through the foreclosure process. Once we got the property, we rehabbed it and listed it. And while the realtor who did our rehab was more optimistic than what the market would bear, we still came away with a double-digit profit when we sold it in the Fall of 2017. 

Want to know more about becoming a JV partner? Send us an email @ adam@ajarealtyinvestments.com

Lemonade Deal - West Cleveland OH

Purchase Date: 23 AUG 16

JV Funding Date: N/A

Sale Date: 30 MAY 17 

Closing of Books: Still Open 

Note Cost: $5,500

Estimated Workout Costs: $3,500 

Total Investment: $9,000

Sale Price: $15,000

Check at Closing: $5,042.02

Payments: 5 monthly payments @ $1,000

Actual Workout Costs: $4,235.11

Profit after costs: $306.91

Return: 3% 

Not our favorite story, but we got out of this one with our shirt still on. We could pick up this note for pretty cheap. $5500. Our realtor told us we could get $25,000 As-Is once we got it. There were back taxes we had to pay. It was vacant and the land contract was not recorded. We just needed to get the deeds recorded and could flip this property. We secured the property and started preservation.

Then the process of getting the collateral started. After a couple of months of waiting, we received some poorly written deeds. We had to ask the seller for new copies because the legal description was incorrect. After the third version, we had our attorney draft the deeds and then sent them to the seller to sign. Finally, we were ready to record. In Cuyahoga county, all parties have to provide their standing with the state they are from. Our LLC was legit, but the seller was not. We asked for them to get legit thinking they were not aware of the problem, but after another month, we were not getting anywhere. Fortunately, in the State of Texas, the Texas Comptroller is current, but the Secretary of State is a year behind. We were able to find a record showing the seller as a legit business in Texas from the Secretary's website. After six months we had the deed recorded.

During this six months though, the copper thieves paid a visit and ripped out some piping. We had paid to have this property winterized, but someone didn't turn off the water. With the ripped out pipes, the basement flooded. That $25,000 value kept falling with every gallon of water in the basement. After about a month of cleanup, we listed this thing for $18,000. After a few weeks, we got an offer of $15,000. $10,000 down and $5,000 spread out over five months. SOLD!!! We were out of this headache and could move on. And while the return isn't anything to brag about, it's still a positive return. It's our lemonade without sugar story.

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