Deal of the Week

Turning Non-Performing Loans into Profitable Investments!

Turning Non-Performing Loans into Profitable Investments!

Our strategic approach to mortgage note investing

This week at 7e Investments, we’re excited to showcase a success story that highlights our strategic approach to mortgage note investing and our ability to turn challenging situations into profitable outcomes. Here’s a deep dive into our latest “Deal of the Week.”

Investment Overview:

  • Property Value: $311,000
  • Total Amount Owed: $6,687
  • Past Due Amount: $2,175
  • Acquisition Price: $500
  • Sale Price: $4,300 in March 2023
  • Total Profit: $4,009

The Situation:

In October 2022, we acquired a non-performing note as part of a larger pool of assets. When we buy multiple assets, sometimes smaller ones are included, but we can get a greater overall discount. This borrower had missed payments since July 2022, accumulating over $2,000 in unpaid charges. Despite these challenges, the borrower was actively communicating with the servicer, which opened a pathway for potential resolution.

Strategic Solution:

Understanding the borrower’s willingness to cooperate, we offered a loan modification that would wrap all past due charges into the new unpaid balance. This strategic move not only increased the loan’s value but also repositioned the mortgage from non-performing to a performing status.

Performance and Outcome:

The borrower signed the loan modification and resumed making regular payments. By March 2023, with all-in costs totaling $1,077 and having received $786 in payments from the borrower, we successfully sold the now-performing loan for $4,300. This resulted in a total profit of $4,009.

Why This Matters:

This transaction exemplifies our expertise in asset management and our commitment to creating value through strategic interventions. By converting a non-performing loan into a performing asset, we not only secured a healthy return for our investors but also provided a sustainable financial solution for the borrower.

We are proud to share this achievement with you and look forward to identifying and capitalizing on similar opportunities. If you’re interested in learning more about our investment strategies, please don’t hesitate to reach out.

Thank you for your continued support and trust in 7e Investments. Together, we are transforming challenges into profitable opportunities.