1st Lien UPB of $143,750 + 3 Years of Arrearages
Purchase Price of $55,000
Received Deed In Lieu of Foreclosure and sold full price in 60 days
We purchased this note from another hedge fund and discovered that the home had been listed for short sale 6 months prior to our purchase with online photos showing the property in good condition and vacant.
Upon closing, we discovered a signed Deed In Lieu of Foreclosure (DIL) in the loan file and we were able to list it immediately as an REO sale with a local Realtor.
We received a full price offering of $110,000 within a week and closed on a sale to retail buyer in 60 days. We netted $99,000 at the closing table, after taxes and closing costs.
The closing yielded $44,000 in profit. We paid back the investment of our JV partner first, then split the profits 50/50. The resulted in an ROI of 40% in 60 days.