CASE STUDIES
Case Study #1 - Non-Performing Loan
Property Address: 1098 Walker Ct., Antioch, IL 60002
Overview: We acquired a non-performing loan secured by a single-family home. The borrower was behind on payments, but the property retained strong value, making it a promising investment.
Key Details:
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Unpaid Principal Balance: $224,828.10
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Legal Balance: Over $300,000 (including accrued interest, late fees, and back taxes)
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Purchase Price: $170,000
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Estimated Property Value at Acquisition: $285,000 – $300,000
Actions Taken:
• Initiated pre-foreclosure to secure possession of the property.
• Managed holding costs, including repairs, insurance, property taxes, and legal fees.
Costs and Returns:
• Total Holding & Legal Costs: $41,000
• Sale Price (after 1 year): $285,000
• Closing Costs: $35,000
• Net Profit: $39,000
Outcome: This investment achieved a 22.9% return on invested capital within 13 months, demonstrating the potential of distressed debt strategies when managed effectively.
Case Study #2 - High-Yield,
Short-Term Land Acquisition Loans
Properties:
• 189 Bremond St., Athens, GA 30601
• 0 Salem Rd., Watkinsville, GA 30677
Overview: We invested in two short-term, high-yield loans secured by 14 acres of land. These loans offered rapid repayment and strong returns.
Key Details:
• First-Position Loan: $148,000 at 13.9% annual yield
• Second-Position Loan: $135,000 at 25% annual yield
• Total Investment: $283,000
• Estimated Property Value at Acquisition: $475,332
• Loan-to-Value (LTV): 60%
• Loan Term: 12 months
Actions Taken:
• Conducted thorough due diligence on the properties and borrowers.
• Managed legal and operational processes with minimal overhead.
Costs and Returns:
• Legal and Office Expenses: $100
• First-Position Loan Profit (5 months): $8,571.67
• Second-Position Loan Profit (5 months): $14,062.50
• Total Gross Profit: $22,634.17
• Net Profit after Expenses: $22,534.17
Outcome: This case highlights the effectiveness of short-term, high-yield investments. The low LTV and quick payoff resulted in a double-digit return in less than 6 months, with minimal operational costs.