Deal of the Week

Non Performing Asset

In this week’s remarkable “Deal of the Week,” a non-performing asset with a Total Balance of $53,330, acquired at $35,450, and valued at $262,000, took center stage.

We bought this loan located in Montana, which was apart of a larger pool of 20+ assets. Unfortunately, Montana is a state 7e Investments does not usually acquire loans due to the low volume of available assets. Currently, we do not have any assets located in Montana, necessitating the need to find a new attorney and servicer. These additional complexities increased the risk associated with managing this loan, leading us to decide against including it in our long term portfolio.

A third party, who we know acquires loans in Montana, expressed interested in purchasing this loan from us. Thus, upon acquisition we recognized the opportunity to sell this asset for profit at approximately $39,300. The total costs incurred stood at $35,630, resulting in an impressive profit of $3,661, showcasing an exceptional 216% IRR and a solid 10% ROI.

This quick and profitable sale highlighted a unique exploration into an unconventional market, emphasizing the agility and adaptability of our investment strategy.