Deal of the Week

Non Performing Loan With Equity

This week our chosen deal focuses on a recent acquisition just outside of Las Vegas, NV. Following our business model, we were seeking a non-performing loan with equity in the property. Below we will dive into the details of the Three P’s our acquisitions team considered while structuring this unique deal.


This asset aligns with our model, boasting an approximate value of $290,000, with a loan payoff of around $85,000, resulting in a Loan-to-Value ratio of 29%. What does this mean? Even if the property’s value was misstated by 50%, we still maintain substantial equity coverage. A low Loan-to-Value ratio attempts to mitigate risk, as the loan amount is well covered by the property’s value.


The original borrower, who was two years behind on payments, has recently passed away. Consequently, the property is now under the management of the family.


Following the borrower’s passing, the previous lender initially collaborated with the daughter on the way forward but has, unfortunately, ceased communication with her for several months. This pattern is commonplace with large funds—they decide to sell the asset and subsequently discontinue all contact and loan management.

Next Steps

Our seasoned, in-house team will collaborate with the daughter to navigate the disposition of the property. Given that the daughter doesn’t reside in the area, she’s likely to consider selling the asset. Upon loan boarding, our servicer will promptly reestablish contact to ensure a timely exit from this asset.