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325 Cedar

Before Rehab

Images are forthcoming!

Details:

Address: 325 Cedar Cir, Adamsville, AL 35005
Property type: Contract for Deed Note
Purchase Price: $12,000
ARV: $35,000
Date of Purchase: 04/29/2016
Projected timeline for refinance or sale: 8 months
Projected ROI: 90-120% Annualized  
Managing Partner: Vil Nikollaj
Ground Partner: Nathan Turner
Company: Canadian Note Guy
Contact details: nathan@canadiannoteguy.com; 450-864-0154
 

Documents:

AddressProperty typePurchase PriceRehab costARVDate of PurchaseProjected timeline for
refinance or sale
325 Cedar Cir, Adamsville, AL 35005Contract for Deed Note$12,000$35,00004/29/20168 months
Date of SaleSales PriceCoCAnnualized
ROI
% Difference of Projected
vs Actual ARV
% Difference of Projected
vs Actual Rehab
% Difference of Projected
vs Actual Timeline
Sources of
Funds
Timeline:

05/2017

Being sold with terms with seller financing. Have this loan out for purchase quotes.

04/2017

I was not satisfied with the offer we had received so put the buyer on hold while I shopped the loan around a bit. I got a much better offer (21k) and the buyer is in the due diligence period now. Assuming they are satisfied, we will close later this month.

03/2017

We have a quote for purchase for this loan and should close in April. The expected return for EAC is a little over 10% however had we not done the seller finance option there was a good chance we would have lost money on this deal.

02/2017

The borrowers made the Feb payment on time and starting next month I will begin to market this note.

01/2017

The borrowers were scheduled to make their first monthly payment this month and paid on Jan 3. I’ll start to market this note in March to get it sold in April.

12/2016

The first monthly payment should be on Jan 1 and I’ll talk to a performing note buyer in early March once that payment has been made.

11/2016

Our borrowers moved in last weekend and their down payment mostly paid for the closing costs. The remaining amount was covered by me and will be reimbursed as their payments come in. The first monthly payment is not due until Dec 1 as per our sales agreement and we’ll then sell the note in March. This should turn out to be another great return as the projected purchase price of the loan will be around $19,500. This will be in addition to the 3k as down payment and the 1300 received in monthly payments. Not bad for a purchase price of only 12k. Once expenses are taken out this will yield an approx 80% total return.

10/2016

I just sent back a counter to an offer for seller financing on this house. The buyer will pay a $3000 down payment, and start payments Jan 1 of $360/m and we will be able to sell the loan in early April for between 19-21k. All in after expenses the take home will be right around 20k and we paid 12k so this will be a great return in just a few months.

09/20/2016

Nathan spoke with realtor last week and she agreed that seller financing would bring the best return. She is modifying the listing and posting on Craigslist this week.

08/30/2016

I talked to the assistant of our realtor since our guy was in the hospital. He’s home now and is doing well after an adjustment was needed for his defibrillator. She mentioned that she thinks 29900 is a bit high and that it is more of a rental neighborhood. We could look at selling the home on terms or Chad had mentioned you may be interested in keeping this house as a rental for your portfolio.

08/09/2016

After getting the house cleaned out of all the trash that was left over the house is now listed and can be seen here http://galmls.paragonrels.com/publink/default.aspx?GUID=4a852c07-514e-447c-a979-40cb48eca70e&Report=Yes

07/26/2016

There was a misunderstanding with the realtor after he had gone to see the property and was waiting for me to give him the go ahead to clean out the leftover trash. There is not too much mess but a clean house will show much better and for the $500 expense I think it’s well worth it. The cleanout will be later this week and then we’ll list the property.

07/05/2016

The house is now listed and the realtor sent me pictures of the house over the weekend. I have not been able to open the pictures however and will get them loaded to dropbox as soon as I’m able. By his report though the house seems to be in good shape. We’ll leave it on the market for 2-3 weeks and then if nothing has happened I’ll have him offer seller financing before we talk about lowering the price.

06/21/2016

Originally it looked like we were going to have to evict the occupants of the house although in AL it’s called an ejectment which takes a bit longer. To help get around this I sent out our realtor to offer cash for keys and when he got there the occupants had moved out. We are now moving to change the locks and list the property, both of which will be done this weekend.

06/07/2016

Now that I have the collateral for Cedar I will investigate what is needed to evict the occupant since the contract has been cancelled.

05/17/2016

I found out that the loan for 325 Cedar Cir is already terminated but people are still living in the house. Once I’ve had a chance to review what the people actually signed I’ll move ahead with whatever eviction provisions are in the paperwork. 

05/03/2016

New purchases for 325 Cedar Cir in Adamsville AL and 3539 Judy St in Columbia SC closed last week on Thursday Apr 28. Collateral and servicing transfer will now commence and I expect both to be done before the end of May.

04/29/2016

Date of Purchase