Law of Attraction (case study)

So, we buy 54 notes January 2009 through a source I found through Linkedin. I bought these with 4 other people and ironically, this is my first brokering experience.
I ended up with 10 of these loans, a mixed bag of 1st and 2nd position residential.
All went very well for all of us, we all made money on those because we were so careful with our upfront due diligence.

Fast forward to 2016, I get a notice on 1 of those loans that if taxes were not paid we would lose the property to a tax sale, I was sure this was a 2nd position lien that I bought for $2,500 and $7,500 owed on back taxes, I figured I would let this one go to tax sale, we had bigger fish to fry and we had done so well with that pool of notes.

The following year I look at tax records online and see the property is still in the borrowers name and all taxes were paid to date.
Now I am convinced this is a 2nd and the 1st brought them current.

Side note of synchronicities
Early on, our efforts in trying to find the 1st on this loan led us on a series of phone inquiries to banks, some were defunct and finally to a bank that was very polite and she said “I’m sorry I do not see that loan in our records”.

I asked, “well if you did have this loan would you sell it to us?” Her exact words were “on occasion we do sell loans”
Off we go buying loans from them for the next 5 years! They have shown us over 1,700 deals which we purchased over 100 for ourselves!

Back to the deal…     
Just for fun I called Ellie May down in north Carolina tax office and asked her who paid the taxes current?
In a heavy southern accent she said “I did”          What!?
Ellie May went on to tell me they needed 10 feet of property to widen the street and there was an easement and you still have a surplus of funds for next year’s taxes!! Sweet!!

In the meantime our daughter moves to North Carolina and ends up living 20 miles from this abandoned house that sits on 3.5 acres out in the middle of nowhere or so we thought. My son in law looks over the property and says he was willing to rehab this dump.

I hired an attorney to run title and sure enough we are in 1st all along!
We foreclose, set the strike price to full debt owed so no one would bid, take the property back and they drew up a plan, we accepted and the rehab begins.
After repair value $190-210,000.
We were scheduled to dig a new $6,000 well, but there was so much rain the diggers couldn’t get on the property so it was delayed and delayed when we get a notice Public Service wants an easement on the property because they want to run city water              WHAT!?

This house is 98% completed and real estate in that area is popping!
One thing after another with this one deal!
Get out there and do some deals!

Law of attraction is Alive and Well!

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