Jacksonville, FL Case Study

[Jamie Bateman]

Investment Info:

Single-family residence note investment investment in Jacksonville.

Purchase price: $46,500
Cash invested: $50,000
Sale price: $125,000

Non-performing note in Jacksonville, FL The principal balance was $93k+ and payoff was $132k. The borrower claimed they were planning to refinance. but the refinance did not materialize and the borrower went dark. We communicated our intent to foreclose. The borrower was willing to deed the property over would avoid a foreclosure, and would be forgiven over $20k in debt. If we had sold the property, we would have profited $60k in under 8 months. Annualized, this ROI would have been 200%.

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

• Although these returns are not typical, investing in non-performing notes can be highly profitable.
• Note investing can be win-win-win. The borrower avoided foreclosure and was forgiven a significant amount of debt. The occupant was provided 3 months of free lodging in order to transition to his own home where he can begin to build equity himself. And a resident of Jacksonville will be provided affordable housing with quality property management and landlords.

What was the outcome?

We will rent the home for approximately $1100 per month, beating the elusive 2% rule.