Non-Performing Note Buyers in NYC - Is this a good deal?

[Tanya Miller]

The current note holder is a Private Money Lender This is a preforeclosure property. A receiver is in place and collecting rent from all (6) tenants.

All (6) are current on their rent payments.

Unit 1 - $884.76

Unit 2 - $811.71

Unit 3 - $806.80

Unit 4 - $473.58

Unit 5 - $884.76

Unit 6 - $878.02

Income: $56,875

Expenses: $20,100

NOI: $36,775

The current FMV of property is $800,000

The purchase price of the notes is $450,000

I have been offered an opportunity to purchase a Multifamily property located in Brooklyn (Flatbush), NY. This is a 6 family, 100% occupied, preforeclosure property. The seller has offered me the opportunity to purchase the 1st & 2nd lien notes with a combined face value totaling $492,000. The combined monetary value of the principal and interest balances totals $1,030,000. I have spoken with the foreclosure attorney and he explained that the foreclosure process will be completed in the next 6 to 9 months. Do you think this a good JV deal? Please let me know what you think.