This is the note that started me down the path of mortgage note investing. It's a performing note, and I'll keep it until it's paid off.
__________________________________________________________________________________
Story: Bought vacant land at a tax deed sale in November 2018. I was experimenting with different strategies for investing. The plan was to get the plans approved to build a good size house and garage on the lot. It was a 2 acre parcel, about 1 acre buildable, and it was land-locked (no recorded easement). You could access it from the end of a private driveway.
The house with the private driveway was in the process of being flipped, and new owners moved in, and started using my lot as a parking lot and storage. I reached out to the new owners, and asked if they were interested in expanding their property by 2 acres. If they weren't, we'd sell to a developer and they're rural feel would disappear. They bought the land in January 2000 with owner financing. It has been happily performing every since.
Numbers:
Total Expenses to purchase land and sell: $23,708.88
Sale Price: $40,000 (FMV close to $70k)
Financing Terms:
$5,000 down payment
5 years with balloon
6% interest
Annual Income: $4,668
Yield: 17.76%
ROI (at balloon): 87%
Hold Time: 6 years
Comments