5 ms·

From a fund. It was at 60% of the loan balance and the annual yield is roughly 12% before taxes.

• charlesdm 11y ago
  Interesting - how much did you actually pay for it, i.e. what's the markup? I would assume you didn't buy it for 60% loan balance. Also, 12%? Did you buy that with 100% cash/equity, or a combination of equity and debt?
  • cko 11y ago
    I mean the purchase price was 60% of the loan balance (a 40% discount). I bought it with cash.
    • charlesdm 11y ago
      That sounds like a good deal !
      • cko 11y ago
        Yeah it was a "rehabbed" note. It was previously non-performing and so it's probably subprime. If you're curious check out pprnoteco.com
        • charlesdm 11y ago
          If it was non-performing, how did you convince the buyer to start paying down the debt again?
          • cko 11y ago
            I didn't do the negotiations, I bought it from a fund that handled that - new terms, new rate, etc. I'm not that savvy myself :)