Deal of the Week

Strategic Insights and Portfolio Optimization

Success story from our portfolio in this week’s Deal of the Week

We’re excited to share another success story from our portfolio in this week’s “Deal of the Week.” Each week, we take pride in showcasing how our asset management strategies transform potential setbacks into profitable opportunities.

Asset Spotlight: A Strategic Turnaround

Asset Details:

  • Total Amount Owed: $13,500
  • Acquisition Price: $3,000
  • Property Value: $40,000
  • Status at Purchase: Semi-Performing

Navigating Challenges

Acquired in October 2022 as part of a larger portfolio sale, this asset initially showed promise, but soon faced hurdles as the borrower fell 1-2 months behind in payments. Despite consistent payments, by January 2023, the situation escalated to 90 days overdue, prompting us to engage legal counsel to issue a demand letter.

Strategic Resolution

As we grow our investor base and continue to scale, we are always looking to enhance operational efficiency. One of the ways we do this is by selling smaller balance loans and replacing them with larger balance loans, which helps keep the total number of loans we manage scalable.

In March 2023, we strategically included this asset in a larger tape of assets put up for sale. This approach garnered a competitive bid of $8,000 that would result in achieving our targeted yield and made sense for us to accept. This move reflects our team’s ability to assess numerous exit strategies and is part of our broader strategy to maximize operational efficiency.

Our Commitment to You

This transaction exemplifies our proactive approach in managing and adjusting strategies to increase efficiencies and put our investors first. Our ability to navigate and adapt ensures we maximize returns, even in challenging situations. This particular case illustrates how our team is constantly evaluating exit strategies to optimize returns through thoughtful asset management.