In this episode, we dissect a deal that started with so much promise but quickly devolved into a non-performing note nightmare. Learn from my (mis)adventures as we uncover the importance of due diligence and what to do when a "performing" note turns out to be a dud. Get ready for some real talk and actionable insights that could save you from making a costly mistake!

• Initial Assessment: The deal involves a property in Toledo, Ohio, with a $106,000 UPB and a sales price of $110,000. The interest rate is 8.9%, with P&I payments of $845.71 a month. Sounds good, right?
• The Red Flags: Concerns arise when the previous value was $56,000, raising questions about the escalated sales price. Plus, current market rent is around $1,000 a month.
• Making an Offer: I dove in with an offer at $40,000, aiming for a sweet yield. But is it too good to be true?
• Collateral File Deep Dive: We explore the collateral file, including underwriting, property insurance, closing documents, and servicing history. Time to put on our detective hats!
• BPO Blues: The exterior BPO comes in at around $60,000, which is lower than expected. Could this be a sign of trouble?
• Servicing History Shenanigans: The servicing history reveals a lack of consistent payments and late charges. Houston, we have a problem!
• The Seller Confession: The seller admits the note is not performing and apologizes for the misrepresentation. Honesty is the best policy... eventually.
• Foreclosure Fears: With the borrower making zero payments, foreclosure looms. Can we turn this ship around, or is it destined to sink?
• Cash for Keys Conundrum: Considering offering cash for keys to expedite the process and avoid costly foreclosure. A little sugar goes a long way!
• The Verdict: Based on the BPO and payment history, this deal is currently a dud. But with some savvy negotiation and a bit of luck, we might just salvage it.

So, there you have it, folks! Another episode, another lesson learned. Remember, always do your due diligence, trust your gut, and never be afraid to walk away from a bad deal. Stay tuned for more note investing adventures, and don't forget to like, subscribe, and share the love! Until next time, keep chasing those deals and closing those notes! Peace out!

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