Note Deal Exit via Short Sale -- Success Story

[Gabe K.]

Hi All,

This is a success story about a non-performing 1st mortgage and note we exited via a short sale.  Here are the facts:

• We purchased a non-performing 1st from a large capital fund in March, 2015 for $105,000
• The house backing the mortgage is located in Hammonton, NJ and was worth $180-$200k
• The current mortgage balance was around $190,000 and was 8 months delinquent
• We attempted to make contact with the borrowers via letters and numerous phone calls and we were ignored
• Our awesome local agent Ricky personally knows the borrowers and called them explaining that a short sale is a much better option than foreclosure
• Within two weeks the borrowers agreed to sell the house, it was listed, multiple offers were received, and we approved the short sale price at $180,000. Escrow on the short sale closed four months after we purchased the note.

Final numbers:

• Note purchase price: $105,000
• Expenses (outside of escrow): $2,700
• Short sale proceeds: $162,800
• Profit of $55,100 or 52.5% in 4 months

How does everyone like this investment we worked on? Thanks for viewing our post.