Deal of the Week

Non Performing Asset Story

Our Asset Management Team would like to provide insight on an intriguing story that unfolded during our recent due diligence process on a non-performing asset.

This story is ~spooky~ (as it is a property 7e Investments chose NOT to acquire) and felt fitting to share while we are in the Halloween spirit! 🎃👻

The Story:

During our meticulous due diligence process, this particular property, part of a tape of several hundred assets under consideration, revealed an unexpected twist. The asset had been described as a single family blue-painted house in the provided information, but our on-site inspection uncovered a quite different reality. It turned out to be what we could best describe as a “half house.” The blue-painted structure was merely one side of a duplex structure and the fair market value appeared to be that of both structures and not the one side.

In light of this new information and the misalignment with our investment strategy, we made the strategic decision to pass on this opportunity. While this property didn’t fit our criteria, the experience underscores the importance of thorough due diligence in real estate investing. Each asset has its unique story, and discovering the complete narrative is essential to making informed investment choices.

Loan Characteristics:

  • Total Balance: $232,610.35
  • Acquisition Price: N/A
  • Property Value: $265,400
  • Non-Performing
  • IRR: N/A