Deal Analysis - Full Cycle - Purchase to Note Sale - Eastern TN

Jul 1 (edited) • Wins

Here is a break down of a deal that went full cycle - This started as a slow flip in January 2021 and the sale of the note just closed this week.

Here are the numbers and details -

3BR-2BA 1200sf home in eastern TN

Purchase Price (Dec 2020) - $24,000

I borrower $24,000 from a private lender and repaid on 60 month full AM schedule @ 10.0% interest

I did zero work to this house.

Sold w/ Seller Finance in January 2021 (hold time 3 weeks)

Sale Price: $69,900

Down Pay: $8,000

Note for $61,900 fully amortized for 180 months at 8.5% - I used to struggle with asking for 10% interest...I don't do this anymore.

Monthly free cash flow ($600 - $510) = $90

I sold the note to a buyer at a discount to yield of 11.88%

At Note sale, I received ~$44,000

I repaid my private lender in full ~$3,800 remaining balance

Final Results

$8,000 received from down payment

54 x $90 free cash flow = $4,860

$40,200 net proceeds from note sale

$53,060 total proceeds over 54 month deal lifetime - on a house I did zero work to

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