Deal of the Week

Investing In Notes

One of the great advantages of investing in notes over traditional real estate is the house does not have to be the prettiest to generate great revenue.

This 2 bed 2 bath 1300 square foot home in Indiana was worth $100,000. The borrower had passed away and the son had taken over the mortgage payments. When we acquired this performing loan in October of 2022 the property had a $56,000 balance. We acquired the loan for $31,000 due to the interest rate on the loan being 5%. When loans have a lower interest rate, they have a greater discount, especially in high interest rate environments.

In September we reached out to the son to let him know the loan was maturing in December and the loan would have to be paid off at that time. We wanted to provide him with ample time to pay off the loan. After assistance from our servicer on options for refinancing and paying off the loan, last week the borrower did just that. We received approximately $54,000 from the borrower. Including the $5,000 we received in payments from the borrower over the past year, you can see this was a great deal for 7e Investments.