Chicora, PA - Reperforming 2nd Mortgage Note Purchase - Note Partial Sold (Case Study)
My SDIRA purchased this reperforming 2nd mortgage back in 2023 on a property in Chicora, PA. Shortly after I purchased the mortgage, I sold a Note Partial to one of my investors. Here are the Deal Numbers: - Property FMV: $170k - 1st Mortgage Balance: $68K (Current) - Note Purchase Price: $32,002.88 (Purchase Yield 14%) - 2nd Mortgage Loan Balance Purcahsed: $36,002.88 - Borrower Payments Made: 11 - Borrower Payments Purchased: 349 - Monthly Loan Payment: $400.00 - Current Interest Rate: 12.90% - Note Partial Sold: $14,982.70 (Purchase Yield 10%) - Note Payments Sold: 48 - Monthly Payment Sold: $400.00 I then took the $14,982.70 from the note partial sale & combined those funds with other funds in my SDIRA, $18,402.27. My SDIRA then purchased another reperforming 2nd mortgage on a property in Florence Township, NJ. Here are those Deal Numbers: - Property FMV: $550k - 1st Mortgage Balance: $234K (Current) - Note Purchase Price: $33,384.97 (Purchase Yield 13%) - 2nd Mortgage Loan Balance Purchased: $45,294.80 - Borrower Payments Made: 13 - Borrower Payments Purchased: 227 - Monthly Loan Payment: $415.98 - Current Interest Rate: 9.0% The thought process was to keep my investor happy, and to keep idle money in my SDIRA working for me. All tax free in my Roth SDIRA.