My first non-performing note

[Rob Pattison]

Investment Info:

Single-family residence note investment investment.

Purchase price: $9,750
Cash invested: $9,750

I bought a non-performing note with a value of $16,000 for the price of $9,750. My exit strategies include motivating the borrower to perform, which will give me approximately $22,000 over 7 years, to foreclosure, which will give me the $16,000 plus expenses and interest, to finally, cash-for-keys which will give me possession of a house valued as is at $36k to $60k.

What made you interested in investing in this type of deal?

I'm interested in the potential returns with this type of investment

How did you find this deal and how did you negotiate it?

I looked at 100 notes from a broker rejecting some, bidding on others and losing until I finally scored.

How did you finance this deal?

My self-Directed IRA

How did you add value to the deal?

I will get this note to perform.

What was the outcome?

TBD

Lessons learned? Challenges?

I'm learning about the non-performing note industry. This note is my first non-performing note. The borrower has declared chapter 13 bankruptcy, so I've hired a bankruptcy attorney to navigate around that challenge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes.