Buying Performing Note in Maine

[Tanya Brown]

Is anyone buying performing notes in Maine? The one I'm looking at is newly originated as of Dec 2019. All payments are current to date. UPB of $143000, current rate 3.5%, payment $644, and not much equity at all since it was newly originated. It's a VA loan deeply discounted by bank with asking price btwn $80-85k. Exit plan is to hold for a year and then sell with a 14% yield to buyer. Concern is that this is VA loan (cant be insured) in Maine. Foreclosure, if it becomes NPN, could take 2-3 years and if it stays performing is there a market for notes in Maine...would I be able to sell it quickly? Or possibly do a partial? Buyer is solid based on credit. One investor said to stay out of Maine, especially with VA loan, but he also said if the numbers work, it may be a good investment. The numbers work, but I'm looking at other factors and if Maine is that much of a pain to be in that state, then I don't want to get caught up just because the numbers look good.

Thanks for any suggestions.