Deal of the Week
Turning Challenges into Triumph
We are thrilled to share a success story from our recent financial dealings.
In October 2022, we acquired a loan for a property with 2 bedrooms, 1 bathroom, spanning 1197 living sqft, and a fair market value of $76,500. The purchase price was set at $27,000, and the loan presented its own set of challenges as the borrower consistently fell behind on payments.
Taking decisive action, we initiated a Notice of Demand in May 2023, prompting discussions with the borrower. After mutual agreement, a reinstatement plan was devised, involving three substantial payments to be made by September 2023. However, despite their best efforts, the borrower continued to pay one month behind. After working even more closely with the borrower, our perseverance paid off and in November 2023, the borrower successfully paid off the loan, totaling an impressive $47,873. This outcome not only demonstrates our commitment to working with borrowers but also highlights the efficacy of our strategic approach to loan resolution.
In terms of financials, our all-in costs amounted to $31,109, resulting in a substantial profit of $16,764. We take pride in turning challenges into opportunities and look forward to more successful ventures in the future.
STORY – ACTIONS TAKEN:
- Fair Market Value of $76,500
- Purchase Price: $27,000
- Purchase Date: October 2022
- Demand Letter: May 2023
- Borrower paid off loan: November 2023
- Received $5,136 in borrower payments
- Borrower paid off loan in amount of $47,873
- Total all in costs: $31,109
- Total Profit: $16,764
