Hi, everybody. This is Scott Schmitz with Northstar Investment Group. Today, I’m going to go over a few deals that we’re currently underwriting. We just got a tape of about 90 assets across the country. We’ve narrowed that down to 5; 1, 2, 3, 4, 5; 5 assets here in Florida that we’re going to be putting offers in on over the weekend.
I’ll give you a quick rundown of what we’re looking at here. The 5 deals, the 5 non-performing notes are scattered throughout the state. 2 are in Orlando, 1’s in Jacksonville, 1 of them’s in Holiday, Florida.
If you’ve ever been to Holiday, Florida; it’s a fantastic little city that’s just North of Tampa. It is on the Western Coast of Florida. It would be on the Gulf of Mexico side. The population’s about 30,000 people in Holiday, Florida. I personally like it. It’s where they have the Tarpon Fishing Tournament everywhere off in Tarpon Springs. It’s not far from there.
Of these 5 loans … There are 5 loans we’re going to be putting offers in on. There’s 2 that I really like. The 2 that I really like, the reason why I like them is because 1 of the borrowers is deceased. The property’s vacant. What that means for us is a slam dunk foreclosure. We’ll get the property back in REO.
The nice thing about where this property is … Let me look at my sheet here. It rents out every month for $600 a month. If we could rent that over the next year after we buy it, we’ll … If we could just calculate that we’re going to collect 9 months worth of rent. That’s $5400. That return on investment is 27%.
Our acquisition cost on that, we’re going to offer around probably $13,000, we’re going to go in. I expect that we’ll probably pay more than that. It is a competitive bidding situation on this take. That’s where we’re going to be.
Since it’s in our backyard, I have a good feeling that we’re going to be able to get that 1. The other 1 that I wanted to highlight is over in Orange County. It’s actually in Orlando. What is fantastic about this is it’s in a very well-established community. The neighborhood’s been around since 1950. The houses have all been remodeled. This property is owner-occupied.
What the great thing about this is, the owner’s been paying their taxes every year. What that tells us when we’re looking at these assets is the owner wants to stay in the house. Most of the time, when we look through these [takes 00:02:52] and there’s delinquent taxes and the current bank or institution servicer, they’re not keeping up on the taxes; what’s that mean? That means the homeowner really doesn’t care if they lose the asset. We’re going into that deal. We’re going to offer around $15,000 for that.
The great thing about that is let’s say that the borrower doesn’t want to reinstate, that property rents out for $750 a month. It’s not far from Disney. It’s only an hour from East Coast. It’s a great vacation rental. With that, I’m going to be submitting these offers coming in on Monday. If there’s any of who’d like to get some more information about how you can joint venture with us on deals like this and other deals that we’re currently underwriting, please contact me.
I’ll put my link in the description below. It’s scott@northstarinvestmentgroup.com. Give me a call. Our phone number is area code, 754-223-9970. Thanks. Have a great day.
