2023 will show some opportunistic headlines:
“XYZ Property Owner defaults on $5MM loan after purchasing property for $8MM”
Before your gold-covered glasses blind you on your path to riches thinking you will buy the note at a huge discount, here are some things to think about:
Diligence is key
- Visit the property – Is there deferred maintenance? Environmental concerns? Illegal builds or other potential city/county issues?
- Review Title – Any other liens outstanding? Property taxes current?
- Legal Costs – What will run to foreclose?
Deal Structure
- Note Seller’s needs. Do they need to get out asap and take a discount or can you be their ‘fixer’ and take ownership?
- Borrower – Are they going to be reasonable and work something out or do you need to file the notice of default and figure out the operation of the property?
- Competitive Advantage
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✅ Accelerate value,
✅ Become better leaders,
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