ROI: 67.48%
Profit: $7,589
Total Expenses: $11,248
Hold Time: 11 months
Exit Strategy: Full Payoff Story: This note was a 1st position HELOC on a duplex that stopped paying in 2011. The unfortunate part was the borrower had Alzheimer's and was checked into a care facility in 2012. He passed in 2020. His family was living in the property and wanted to retain the asset, and came through with the payoff after starting the foreclosure process. This was an end of tape note that nobody else wanted. Lessons Learned:
Don't send a demand letter in December. One month isn't likely to kill the deal (or run into statutes of limitations)
Don't try to engage with the borrower's family, leave that to the lawyers.