Hey everybody, this is Scott Schmitz with Northstar Investment Group. Today, I’m going to go over a recent cases study of a non performing note that we purchased up in Panama City Beach. I’ll post this little flyer of the deal in the link to the description below in the YouTube comment sections. Here’s the deal, here what this was. This was a fantastic deal that we purchased. We found it from a nice lady up in Georgia. Had a defaulted mortgage and she didn’t know what to do with it. It was an owner financed deal so we bought it. The property, when I went up to look at this because I was on my way to do some other things up there, right across the road from the ocean. Hilton’s on one side. Holiday Inn’s on the other. There’s this condo right across the beach. It would have made a great rental but we decided that we were just going to so a short pay off offer with the borrower.
Kind of a unique situation. Lady had died. HOA had foreclosed on it. Somebody else had purchased it subject to the existing lien. We bought the mortgage knowing that that person that’s in there now is still liable for the mortgage. We reached out to them. We struck a deal. They gave us payoff. From start to finish, we were in and out of this deal within 90 days. Here’s how it looked like. I’m not going to give you the address but it was in Panama City Beach. You can actually look at this worksheet if you want to go get the address.
When we purchased the loan for $10,000, the unpaid balance was $48,000. We had about $2,500 in attorney’s fees and closing costs. Our total investment in was $12,500. This property, when we did this deal a few months back, was worth $75,000. Today, it’s worth $95,000. Looking back on it, we probably should have foreclosed and taken the property back. You know what, this was a win-win situation for everybody. We offered them a short payoff of $43,000. They decided to take that rather than lose their property. We subtract our 12.5, there was a $30,500 profit. We split that with our joint venture partner, so each party, us and them, walked away with about $15,000 worth of profit in our pocket, within 90 days
Now, let me preface this. Not every deal goes that quick, but the numbers on deals, we see them all the time. We get deals like this across our desk, we’re closing them every single month, every single week. If you would like to discuss some opportunities to partner with us on some deals just like this, please give me a call or email. My email address is scott@northstarinvestmentgroup.com or you can catch me on my phone. Number is 1(754)223-9970. All right, look forward to speaking with you. Have a good weekend.
