Sold our laundromat yesterday - a weight has been lifted off my shoulders! It was a fun business when I didn’t live an hour away, but it became a hassle after moving and having kids. We found a great operator who took over the business (and signed a long term lease for the space with me, I’m still the building owner) and I’ve never been more optimistic! Focused 100% on FIXnotes - let’s go!!

I purchased this reperforming 2nd mortgage back in 2023 on a property in Orlando, FL. 8-months after I purchased the mortgage, I did a Collateral Assignment with one of my investors. Eventually selling the mortgage to the same investor. Here are the Deal Numbers: - Property FMV: $475k - 1st Mortgage Balance: $225K (Current) - Note Purchase Price: $28,425.91 (Purchase Yield 13.7%) - 2nd Mortgage Loan Balance Purchased: $50,943.06 - Borrower Payments Made: 4 - Borrower Payments Purchased: 356 - Monthly Loan Payment: $350.00 - Current Interest Rate: 7.2901% I collected 8-monthly payments of $350 (8 X $350 = $2,800 received), I then did a 2-Year Collateral Assignment with one of my investors. A Collateral Assignment of Mortgage is a legal agreement where an investor gets a security interest in another investor's mortgage loan and its underlying collateral (like property) to secure a loan between the two investors, essentially pledging the mortgage as collateral for a loan. - 2-Year Collateral Assignment Amount: $30,000 (Money lent to me, from my Investor) - Monthly Payments to my investor: 24 - Monthly Interest-Only Payment to my investor: $250 (10% Yield to my Investor) I used an existing Reperforming 2nd Mortgage as collateral to borrow $30k from my investor for a 2-Year period. The terms between my investor & I, were 24-monthly payments at 10% interest-only, which is $250 per month. After 24-months I owed my investor their full principal amount back, the $30k. For 24-months I collected a $350 payment from the borrower of the mortgage loan and paid my investor $250 a month. So, I still received $100 a month, after I paid my investor their $250 (24 X $100 = $2,400 received). I could have paid my investor back his full principal amount of $30k, when the Collateral Assignment was finished, but I decided to sell him the mortgage note instead. - Investor's Note Purchase Price: $36,908.72 (Purchase Yield 10%) - Since I owed my investor $30k, they only had to come to the closing with $6,908.72 - 2nd Mortgage Loan Balance Purchased: $49,516.68 - Borrower Payments Made: 36 - Borrower Payments Purchased: 324 - Monthly Loan Payment: $350.00 - Current Interest Rate: 7.2901%

Do servicers typically follow the Payment Waterfall when processing payments? I have a NPL where the borrower was behind around 4 months delinquent and made a lump sum payment of 2 months worth of payments. At the time of payment I had advanced around 5k worth of advances to include, taxes, FPI, and attorneys fees. The servicer applied the payments to the next payment due and the following payment covering principle and interest like they were normal payments. There was no late fee, zero applied to the arrears or advances, nor the additional interest accrued since the payment was made months later than scheduled. Is this typical and should I be hitting up my servicer to get this corrected? I'm sure they already notified the borrower how the payments were applied. At this point there is no penalty for the borrower continuing to pay late if the payments get applied as regular payments. What am I missing? How would you go about handling this situation?

Is anyone noticing their re-performing notes increasing in delinquencies? Our business is always a lag from a truly performing 100% current. But this is beyond normal, for me anyway. This could be an indicator of the country lagging a bit

I had a meeting with some colleagues earlier in the week where we discussed SDIRAs. After the meeting I got to thinking and have a question that maybe someone from this group may be able to answer. If Early Retirement with notes is your goal, I would think eliminating tax drag would be a huge push in that direction. SDIRA would help greatly with that. However my question is, how do people early retire with a SDIRA when there is an age requirement tied to the account to receive all of the tax benefits? Does anyone have any insights on this?