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Vacant Land in Tampa FL Case Study

As I exit assets, I plan to share the details of the asset. The following was purchased in my Solo401k. I spoke about it on the Naked Notes Podcast, Season 5 Episode 20 (100th episode).


Story: Purchased asset in June 2020. Once boarded, reviewed escrow and discovered huge overage (~$7500). Borrower decided to pay $5k principal and ~$1600 to the next payments, making his next due 3/1/22. Total expenses at that time was $6246.02, total income $6937.00. All money returned within 2 mo of purchase. Cash on cash return at that point was 111%.

Got everything recorded into my company in April 2021. Decided to offer early payoff discount of 20% UPB for best return. Servicing fees took half the monthly payment and I wasn't receiving a payment until 2022. Borrower took it and paid off discount in May 2021.

Final numbers:

  • Total Expenses including acquisition: $7333.22

  • Total Income: $9692.63

  • CoC: 132.17%

  • ROI: 32.17%

  • Hold time: 11 months


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