Deal of the Week
Investment Playbook: Turning Challenges into Profits with 7e
As the NBA Finals heat up with the Boston Celtics facing off against the Dallas Mavericks, we’re reminded that both basketball and investing require strategic plays, keen insights, and a winning team. Just as the Celtics and Mavericks aim for victory, our asset management team at 7e Investments is dedicated to turning potential challenges into profitable opportunities for our investors.
Asset Details:
- Total Amount Owed: $3,810
- Past Due Amount: $858
- Acquisition Price: $1,000
- Property Value: $90,049
- Status at Purchase: Non-Performing Loan
The Story:
- Acquisition: In October 2022, we acquired this non-performing loan in a larger pool of assets. The loan was mature and due in full, with a demand already sent by the prior owner in July 2022. We had to advance delinquent property taxes totaling $7,813.69 to avoid a tax sale.
- Challenges: The borrower could not afford the payments plus the past due taxes. They agreed to a Deed in Lieu of Foreclosure, but unfortunately, they wouldn’t move out, necessitating an eviction scheduled for May 2023.
- Resolution: In a turn of events, the borrower’s daughter approached us, asking if she could buy the property back for her mother with a $3,000 down payment. We accepted, and she signed a new loan in June 2023 for $20,000.
Outcome:
By August 2023, we sold this restructured loan to another note buyer for $18,000. This outcome was a win-win-win solution, which we always aim to achieve – we win, our investors win, and our borrowers win!
Financial Breakdown:
- All-In Costs: $11,555
- Total Profit: $6,444
Just like a well-executed game plan in the NBA Finals, this transaction showcases our team’s strategic decision-making and dedication to generating winning results for our investors.
If you have any questions about this deal or our investment strategies, we would love to hear from you. Feel free to book a call with one of our team members at your earliest convenience.
