How to lose $20k on a Non Performing Ohio Loan

[Steve Hodgdon]

All we ever hear is the good news. Brokers and gurus promoting 25%+ returns. Promises of quick turn arounds. No sweat, no strain.

Many times that’s true. I’ve built a portfolio of performing loans that more than pays my bills. But sometimes things don’t work out. And nobody ever talks about it. Why? Obviously sales folks don’t want to hurt their sales. Gurus want to get you into their high priced mastermind training programs. Plus, we all have a natural aversion to talking about losses.

Sharing the truth is about building trust and community. I’m telling you what’s happening with me to help and build a real community. 

Long story short, I bought a $21k note, paid tons of back taxes and legal fees. House was lovely on the outside and a disaster in. Sold it to a flipper because I have no boots on the ground today in Cleveland. If this had been in Florida or Indiana where I have trusted partners, maybe a different story. 

[Mike Hartzog]

I have purchased a lot of good assets in OH, however, I am in the process of taking it on the chin on one of them. I don't think one can play this game without an occasional loss as we are dealing with some unknowns, primarily collateral condition, and that is the reason we can buy them at a significant discount to value/UPB. As long as the wins greatly outnumber the losses, it's just a cost of doing business.