Success Story: Note Exit via Trustee Sale

[Gabe K.]

In March of this year we purchased a non-performing 2nd deed of trust in the Silicon Valley area of CA.  We attempted to work out a loan modification with the borrowers but ultimately needed to foreclose as they were unresponsive. We received a full payout of the loan balance following the trustee sale.

Investment Summary - Foreclosure

Santa Clara, CA

• Investment Type: Non-performing 2nd mortgage
• Property Value: $800,000
• 1st Mortgage Balance: $545,000
• 2nd Mortgage Balance: $80,290
• Note Purchase Price: $37,140
• Expenses: $618
• Proceeds from Trustee Sale: $80,290
• Cash-on-Cash Return: $42,532 or 114.5% in 8 months

We believe this outcome is attributable to our extensive research process and detailed due diligence during the note purchase process. Part of this investment was funded by a an IRA account, which means the gains were earned tax deferred.