2d (edited) • Case Studies 📜
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.
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Chicora, PA - Reperforming 2nd Mortgage Note Purchase - Note Partial Sold (Case Study)
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