12 Mortgage Note Case Study With Eddie Speed - Real Estate Investing
PROPERTY overview: - Class D- property that was neglected and very distressed - termites, bad roof, no heat or AC, bad wiring and plumbing - Original plan was to remodel for a rental (would have lowered the rehab costs by perhaps $5k) but a visit in Jan '19 changed our plans - Upon joining NoteSchool in Jan '20 we flipped to selling this house and holding the note - We did the demo and gutted it and used our contractors to add a new roof, added HVAC, repair termite damage, new electrical, new plumbing) and remodeled the entire interior - Highly stable workforce neighborhood with long term home ownership and few rentals - Low crime, excellent elementary and middle school within the community - Purchased the property in 2017 using money out of pocket and a small 2 year note and which we paid off prior to closing - At the time of sale (July '20) we were at $88,770 (in the property) = $58,250 (purchase) + $30,500 (rehab) NOTE TERMS overview: - Sales price of $145,000 - PBB Buyer, D-F Qualified, $4000 down, escrowed T&I - Note Price $141,000 which we papered using a Title company as $98,750 (sales price to lower tax basis) + $46,250 (repair cost) @ 6.5% for 360 months - PI of $891.22 - Secured a PLEDGE at the time of closing for $40,000 for 4 years at 6% to recoup the rehab costs and 10k above that - We plan to secure additional Pledges when this one expires as well as consider Partials Uncover Why Savvy Investors Use Proven Mortgage Note Strategies for Massive Monthly Profits In Today’s Ever-Changing Market… Risk-Free! Discover more about Note School and profiting without Tenants, Toilets and by taking our FREE one day class: https://new.noteschool.com/TV Latest Class Information: https://noteschool.com/3-day-classes/pop/ Download a Brand-New eBook by Eddie Speed It’s A Whole New Ball Game With Creative Financing https://lp.noteschooltraining.com/moneyball-getstarted Follow us: https://youtube.com/c/noteschool https://www.noteschool.com/ https://www.facebook.com/thenoteschool https://www.linkedin.com/company/noteschool/ https://www.linkedin.com/company/colonial-funding-group-llc/ https://twitter.com/thenoteschool https://www.instagram.com/thenoteauthority/ #NoteSchool #EddieSpeed #RealEstate #MortgageNotes