This is a second mortgage on a beautiful near-waterfront property, with docking rights, in southeastern Connecticut. The house has 3 bedrooms, almost 2200sf of living space on 3/4 of an acre. The property is currently for sale, listed at nearly 600k, which I think is way too high. I have talked with one local realtor and intend to talk with another, as part of my due diligence to determine the property value.
The first mortgage payoff is 322k, and the second payoff amount is 82k. I am looking for a passive JV partner to invest 13,900 for an 80% share of this second mortgage. To protect our respective interests, the mortgage will be recorded in both of our names.
If the property sells for anything north of 430k, we would get a full payoff of 82k. Even if the property sells for 375k, we would more than double our investment.
If the owner’s financial situation improves and he begins making payments again, it is likely that our cash-on-cash return would be well above 20%, but in that scenario we might choose to re-sell the note (for a healthy profit) to an investor looking for cash flow.
The loan we are buying is non-performing, but the homeowner is current on his first mortgage, which tells me he has income and is trying to protect his credit. Since this house is on the market, I have seen photos of the house, including the interior, and the property appears to be very well maintained.
If you are interested in discussing this opportunity, please contact me ASAP. There are at least 20 other investors looking at the pool of mortgages in which I found this one, and I think it will go fast.
