Breaking Down 20 Nonperforming Apartment Notes

Foreign this is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for panties on the dollar. Get educated and entertained by someone who has closed thousands of deals and lives to support you in achieving the same. Now here's your host CEO of We Close Nodes, Scott Carson. Good morning, good afternoon and good evening. Hey, welcome to this episode of the Note Closure show. As always, excited to have you here. It is Monday so it means it's a money Monday. That's right. We like to go through some stuff to make you guys some money here on Mondays for you guys. Hopefully you all had a great weekend. Things are rock and rolling here. It's always good to start the morning off like I get up in the morning, do my business, you know, start a cup of coffee. I hit a couple buttons on my laptop to get things rocking and rolling while I'm waiting for the coffee to finish brewing so I can go on my morning walk. It's always nice when you get listen of notes right off the bat. It's a beautiful thing. It's a gorgeous time when you get lists of notes that come in, especially when you start looking through stuff like I've got the sources that send me stuff on pretty much a daily basis with a variety of things. These are sources that we've been buying from. We get lists from them on a regular basis and it's always a mixed bag of stuff. Sometimes it's good stuff, stuff that we liked a bit and other times it can be stuff that's kind of like, well, it's scratch and dent stuff. We're not really going to buy scratch and dent stuff for the most part or performing paper or other stuff like that. But what we do get from time to time is non performing stuff. And the great thing about when you start getting non performance because we're seeing more and more of that is when you start seeing stuff that people are asking for or looking for. And what am I talking about? Well, besides it just being first liens that you can cherry pick from and I'm always amazed that more people don't bid on that kind of stuff. But when we start getting in multi family loans and people are like oh hey, this is some multi family stuff, why not look at this stuff? And you know we see multi family stuff. We've seen a lot of it in New York, that's no surprise, New York, New Jersey. And this tape does include some of this. But we saw these 20 notes that are coming in and I started looking at some of the addresses. I'm like, oh, there's some stuff in Georgia, there's some stuff in Florida, there's some stuff in Ohio, Connecticut. All right. Some stuff in Illinois, which I don't really like, even Indianapolis. And of course there's the stuff in New York, New Jersey. So I'm like, well, this might actually be a decent tape to dive into and do a little due diligence on on something. There's even one in Milwaukee, Wisconsin. We just had our buddy Corey Raymer on there on our podcast out of Green Bay, Wisconsin, who buys in Milwaukee. So I've already shot him an email with the, let's see if he's interested in this address in Milwaukee. So what I thought we'd do this morning is go through kind of what we're seeing on this stuff, kind of walk you through the process. If you're interested in this kind of stuff, get signed up for a WCN membership that's 97amonth. We do have our upcoming workshop this coming Friday, Saturday, Sunday. So your monthly membership includes access to the class. Really excited about what we're teaching this weekend. Yes, we'll do a little more deeper dive into these multifamily deals and due diligence this Friday, Saturday, Sunday as well. And yes, this list can be cherry picked. You don't have to buy the full amount. And there's some higher balances on this stuff, especially the New York stuff. And then there's also some lower balance stuff that's actually pretty decent in some of the areas. So I've already shared this tape with our WC and crew members. I know people already looking through it because I, I can see people already responding to questions and I'm like, what's on the tape is what I have. All right. And yes, I am paying attention to those that are watching also live on YouTube. So you got some questions about stuff, feel free to type in there. But I would tell you, hey, go get join up over on Zoom with the link that we provided for those to join in today just for this purpose of going through and asking questions live as we break down these 20 non performing notes now, multi family notes. I started buying multifamily notes right off the bat back in the day, everybody. Okay? I mean I was getting lists in from Capital One and we could cherry pick Wells Fargo, multifamily, even some stuff from a couple of the big, big, big evil guys, you know, on stuff that they want to get rid of. So there's an Opportunity. How you have to approach a multifamily loan is not get so bogged down into, oh, it's the multifamily. I'm gonna take an apartment complex over. You have to realize that you're buying the debt, okay, you're the bank. And to get the property you either A, have to foreclose or B, work out like a D blue cash for keys or, or a consent to judgment, especially if they're second liens. And a lot of these properties will have second liens, probably on them from other things that we pay. You also also want to make sure you're buying the first lien. And I, as far as I can tell, I believe these are all first liens on these properties for the most part. So let's dive into the spreadsheet and go from there. Look at some of these assets. I've already looked at some of these properties this morning by just quickly just pulling in the address. There's a couple that are very interesting. There's a couple that have some mixed use, especially stuff up in New York has. And there's one in Chicago which has some apartments and then some mixed use offices on obviously the first level, which is not bad. There's also the one in Georgia. There's one in Georgia that has says multiple addresses. And so I have not got the updated list of addresses on those. So we're gonna let me just share my spreadsheet here. Let's see. Here we go. 20 multifamily loans. Share. Let's make this a little bit bigger. Come on, share. There we go. All right, Escape. Let's make this bigger so it's easier to read. Okay. All right, so got, let's just go through what's on the spreadsheet. So you guys have a bit of an idea? Okay, so this spreadsheet is 20, and yes, I have permission to move this on behalf of the fund that's moving it. They always say, Scott, you bring us a buyer will gladly pay you. All right, so that's great. And then we've also got, there's two tabs on the spreadsheet. So you got just the regular addresses. You get a little bit more raw data, which I'm not going to share here publicly because it gives you the list of the guarantors, stuff like that. So you have the loan number on here, guaranteed FN flat. There's nothing in that. So that's going to be on the other page, the address of the property, if it's provided. Like I said, there's Multiple properties in Albany, Georgia and then multiple properties in Hartford, Connecticut. I'm going to be up there. And it's hard to believe, so it might be something to take a look at. City, state, zip, number of units. That was not included. We added that in to take a look at just this morning. So if you're looking at the tape in the the base camp group for monthly membership, it does not have that column because I just finished that column literally four minutes ago before going live here. Total loan amount. Okay. Total initial draw. So, like these are what's called RTL loans, residential transition loans. Okay. And these are all properties that basically were financed and then going through some sort of rehab process. And it tells you kind of the stuff because when you start seeing like total initial draw, that tells you that the borrower pulled some money from the fund on this to rehab the property and tells you original hold back, you know, how much money you've held back. Okay, Current hold back amount. Right. Current balance on the loan. So that's the thing to keep in mind. The current balance is basically. That's like the legal balance for the most part. Well, maybe not, I'm sorry, that's probably the current unpaid balance, not the UPB on it. All right, because there's going to be late fees on these things. All right, so then you go over here to the next couple columns. Amount, amortization type, fixed interest only loan. It's a rehab. All these rehab, Dutch flag. I don't know what the Dutch flag I have to look at that for. But anyway, they're all not sure whether one's true and the rest are all false. Original term, you can see these are short terms, 12 or 18 month terms. All right? And you see term remaining kind of shows you how far behind they are. So this one's over a year behind, this one's two. So you can see the age alone. 28 months, 48 months, 27 months, 37 months, 52 months, 48 months, 72 months. And you see they're already kind of negative 46. They're already behind by a chunk there. Okay. 20 months, three months. So some of these are pretty far behind. Okay, Original rate, you know, they're all rehab loans from 8, 8, you know, 6.8, you know, 6.8. And then they have a default rate here of 23. This, this does not make sense. A 45% default rate, but maybe it is. Whoa, that's expensive. Okay, Original fico, you see, they all have pretty good FICO scores, all right? They don't have current fico, FICO date. They don't have that bar. Experience will have that. They have that in the other column for a little bit Original I think ailtv. I think maybe it's all in ltv. Current AI ltv. I'm not sure what the AI stands for, but I think it's all in original. Oh, as is LTV. That's what it is, sorry. As is LTV. Okay. AR as after repair LTV. Okay. And the current after repair LTV is still at 64. All right, what's this LTC? Not sure. And here you get into some notes here. Like the loan purpose. It was a new customer light rehab purchase, no cash out. Experience, light light, one heavy rehab and the all rest have been well, light rehab, light rehab, light rehab. So basically all light rehab except for this one heavy rehab on this one. This one is located where probably it's the ones in fville, North Fayetteville, North Carolina. So 22 unit. Okay, keep moving on over here. So original, that's where we're at. Experience and then property type, multifamily, number of properties. One's got three addresses. Another one has. They're mostly one except for the ones, oh, this one has five addresses but we still don't have the addresses for that one. So those are two, three addresses and five are the ones we're missing. Two of the ones in Florida are right next door to each other. I think it's the same exact borrower. Let's go over here. Nope, it's a different. Well that's interesting. So different borrowers on these two that are in, in. In Hollywood, Florida. But anyway going back here to the regular tape. So that gives you a bit of an idea, you know, original as is value you're buying is obviously pretty much below value. Okay. And so that's the thing you look at. Are you. If you look at the value of where they're at and what you can buy that note at, are they underwater, are they over encumbered? Obviously you're still going to pull comps, you're still going to try to do your due diligence, you're still going to look at the full payoff balance if there are any pulling title, other liens on there that can affect your ability to take the property ownership over. Now the idea here is look, if you can buy a multi family loan at a discount and get a pretty good yield even if it's a distressed debt or you know, look at this stuff. If you can buy this at you know like 14.9 if you buy this at 65 cents on the dollar. All right. Hey, that adds you're gonna be making a 20 cash and cash return just to keep them in the property. You know what I mean? And this is a. This is the link of Chicago, which I probably would not buy. But that's just me. I am not a fan of Sharp. This is one of the multi unit ones. Okay. So, but anyway, so you've got some information on here to start doing your due diligence. Obviously, you know, we were waiting for addresses. Take a look at those two. You can see when these originated. You know, back in 2020 was the earliest one or no, sorry, 2019 was. It was originated July. And the most recent one originated was April of. Nope, February of 2024. February and March of 2024. Okay. Oh, no, wait a second. February, 2024. Yeah. May of 2024. Sorry. All right. And then you can see that the next pay due, next pay date, they're all behind. So like this, the next pay dates are supposed to like March of this year, February this year, January, November, February of 2024, May, March of 2025. So they're all behind by at least roughly. Give it a take. Four months, they're in default. Okay. So the ones that are further behind are ones be the bigger discounts. All right. Original maturity dates. These are all be well beyond their maturity dates. Okay. And you can see there if there was an extension place in there. Yes, yes. True for a couple of these, false for others. And they're all delinquent and they don't know the occupancy if they're occupied or not. If we go over here, the notes. Let's go back to the notes because that'll tell us the foreclosure aspect of these things, where they're at in the foreclosure process. No, they don't have anything else in here as far as the foreclosure process. It does give more on the advances, delinquent taxes and liens. Some of these have some obviously delinquent tax liens attention. So that's something to keep in mind. Some of these don't and that's okay. But for most of these, these are going to be a foreclosure process or you're going to get a consent to judgment if the bar is willing to do a deed loan walk from these things. So let's start looking at some of these assets and start looking through some of the numbers on these just to give you a bit of an idea. Okay, so what I'm going to do is I'm going to resort these, custom sort by size. We'll start the biggest and work our way down to the smallest. We're going to get rid of some of the states we don't want to waste our time in. Okay. Resort is by the address there we go over on this one. All right, so custom sort resort these by unit numbers, number units, largest to smallest. All right, so now we've got these and we're going to get rid of. All right. We're get rid of a few that we don't want to waste our time with. If you're a New York or New Jersey investor looking for multifamily, then reach out to me directly. I'm glad to shoot this over to you. If you're on our approved buyer, let's have you sign an NDA and a fee agreement. We charge three points in a non performing note purchase whatever you end up purchasing. So that's something we'll have you guys sign beforehand. Anyway. Let's look at the ones we want to spend our time with. So let's just get rid of the stuff we don't need to spend time on so that we're in New York, New Jersey. All right. The Connecticut and Georgia ones unfortunately don't have the information. So we're just going to leave those off. Okay. So that's where we're at. So you can see on here. Let me just give you a bit of an idea. This one Here in Chicago, Illinois, this is a mixed use. It's 8 units mixed use based when I could tell online. There we go. 545 subcash. So you see up here, this looks like eight units on top with two retail units on the bottom. Two office. Okay. Tax, tax refund max. And this other one, this is a photo from you know, three years ago. So it may not be there may be vacant. Okay, so supposedly eight units. So you can give an idea there, you know, kind of normal south side, Chicago area, which is not fun for me. Let me pull up the next address. This next One is, is 78 units in Indianapolis. This is a bigger complex based on what we could find. Come on, let's. All right, so this one, this is 78 units in Indianapolis. I want to make sure my screen is updated here. Share. There we go. I'm pulling over. Should. Okay, so it's not. Not a bad looking complex. Right. I don't know what part of town this is from June of 2024. The thing that concerns Me. Oh, see, there you go. It's. I can't tell if it's just this unit or all four of these. It's probably just this one based on the address. Otherwise they say multiple addresses, 78 units. So maybe it is all of them. Yeah, probably potentially. So many units. Okay. Not a lot of cars in the driveway. That kind of concerns me. This is from, from June of last year. Okay. Not bad looking. Okay. And let's go. Let's actually do a little deeper dive on this one. So if we go back to our spreadsheet here, all right, 2120 North R Avenue, it's 78 units. It's got a $3.7 million loan. Yeah, it's probably all of those. Original term was 36 months. I had the longest term. 7.25. 7.25. So this might be the one. It's probably the least amount in default.75% light rehab. They say 4.95 is the as is value matured in March of this year. So they're behind. Yeah, so they're behind by four months. The advance basically about 600,000. Okay. And we just got the data was pulled four days ago. So the lender's tired of messing around with these guys. I guess. 4.95. They figure as is the original 75 LTV. So on something like this, I mean there's equity. So you know, depending on the numbers and what your, your money's Gonna cost you 65 cents on the dollar, the 3.7. Because we all know values have change quite a bit, especially multifamily side. Right guys? So if we just figure in, since these are all non performing, let's just put in 65 cents of the dollar and see if that makes sense. That's where I would start my bids, you know, and just run these all the way down because you don't know what kind of condition they're in. There you go. So the thing you have to do as a multifamily investor is what you got to figure out your cash flow. Is it going to make sense cash flow wise on what their monthly payments, P and I payments are supposed to be right to you up to 2.4. It was in default. Well, they're probably not going to get that. So is it going to make sense for you to foreclose and take this property back from the borrower? Right. And then that you got to go through that process and then when is it going to be? Now the nice thing about being in commercial notes is the minute you start the foreclosure process, you have the right to collect rents. Okay, so that's one nice thing that you can do as a lender. Start collecting rents and working to do that. Now we don't know the vacancy, I don't know the occupancy, I don't know the monthly p and I pay the rent payments on these, that's something you're going to have to do a little bit of your own Sherlock Holmes. You know, what's the makeup on it? How occupied is it? That's the unknown. Now you could use a service like credit IQ and that could possibly pull up the, you know, where they're at in the financials and what they reported. But this one, these assets are probably not going to be in there initially because they're probably not with a CMBS lender. Okay. But for something like that, that's where I would start my bidding with the unknown, 65 cents on the dollar. You know, I would even go lesser depending on where it's at, the more you find. But that's the thing is if you can get something at 65 cents on the dollar right now and it's going to turn into a pretty good rental and you can take foreclosure, start collecting rents. There you go. Yeah. You know, so if we go back here, let's go back to a little bit of a information on that one. Let's go back here, share. Let's see what all we can find about this. So 22 North Zillow Road Realtor. Here we go. You can see. Yep, it is all of these units, which is nice. Just a whole four or five buildings, 3.17 acres. Let's go back one more. Roland Mayor property data. Here we go. Yardy matrix gotta look like yardy. Okay. Multif family property was built in 1964, has a total of 78 units with the following unit breakdown. One bedroom, two bedroom, one bath. All right, so it's got one and two one ones and two ones. Don't know the mix up, audit, you know, the breakdown. So you have to figure that. So checking rents, you know, seeing what the rent rates are is, you know, jumping. You already take a look at it. But that's the thing, is figuring out what your cash is going to be. You got a questionnaire from somebody? That's the question. That's correct, Tony. And that's the whole goal is to get a point as a receiver. That's what we've done on some of the multi family properties where they were collecting rent. We did that in a couple down actually down in West Palm Beach. Did that in a property also in Indianapolis. So it turns out that could be good cash flow while you're finish up the foreclosure process on these types of deals. But anyway, that one, I mean, once you dive into your due diligence, obviously a lot of that stuff will be provided if your bids accepted. And that's why I started like 65 cents a dollar because you, you fade it up, fade it down. Depending on what you find in the due diligence process, sometimes owning the bid, controlling the bid is just as valuable because sellers don't necessarily want to go back if they can sometimes be close to where you're at. And also on something like this, the lender might be willing to carry that loan for a period of time. If you bring it that way, you don't necessarily need to bring in the full amount due on it. You know, if you're going to buy it at 2.4, you know, depending on what the value, the value comes back lower than, you know, 3.7, then you're gonna be lower than 2.4. Trying to figure out values on this stuff is kind of the trickiest aspect of the multifamily side of things. Okay. But that's not a bad looking little property. 78 units, looks like it's in pretty decent shape. And this was considered, based on what they told us here, light rehab. And that's at an 18 default rate right now. Okay, that's a pretty good default rate, up from 7.25. So I guarantee they probably haven't made a single payment. Let's this one was. When was the last payment made, Richard? In 2022. Matured March. Next pay date is August of last year. So they're about a year behind, year behind on this. Okay, so that's potentially a decent one. Right, let's go down here. The next one in Miami. 1281 Northwest 61st Street, Miami, Florida. This is also a bunch of small one bedroom, one bath. Okay, this photo is from December of 2022. This is what, 22 units? I think 33 units, actually. Okay, question here from somebody not a great neighborhood. Yeah, I could understand. Thank you, Tony. Totally agree. Probably not the greatest neighborhood to be staying in. There's good areas and bad areas everywhere. Right. I always said when you see a lot of gates, but you've had some work, you know, it's not so bad. You know. This is taken in December of 2022. Look at that. Christmas wrappings. You get some Pride of ownership there, pride of tents. But it all depends on where you know the numbers are. Is it worth it? You're not managing it. You probably would have an on site property manager, have somebody work with it where they take it over there for you. So same thing. Figuring out what the rents are in that neck of the woods and then figuring expenses and going from there. Well, I live here, so know then. Yeah, I. I don't doubt it. I know you live there, buddy. Yeah. Not the greatest neighborhoods, but doesn't mean you're living there necessarily. Other people live there. Area will be redeveloped soon. Yeah. Definitely agree. And I think I saw that this property had already been painted. If I looked at. If I remember looking at some of the stuff where did I see something here that's the most recent? Maybe it was a different one. Let's just look at this one. 12. Anyone north of 61st right now? Yeah. 485 rent. So 4, 485 is a square foot ransom. They say 1600amonth. I don't know if that's right. But what's great about is you can kind of see the makeup of this. One bedroom, one bath. You know, not the greatest photos, kind of small. 485 square feet. All right. The guy obviously looks like security cameras there. So ghost, obviously, as it says here. Probably a big section 8 property. Okay. I think it's 281 a unit. Let's go back to what they say on here. So on this one. Come on. This one's 33 unit. Miami, they lent 535 against it. Current balance is 2.2. So must have borrowed some of it. They got the loan to purchase it and then took some rehab and then didn't. 2.2 12 term. 12.99 in a 25% default rate. They value it somewhere around 5.6. 4.8 to 5.6. I don't know what date is that it's based off of. So originate in May of 2024. And they stopped paying in April and it just matured. Okay, so they owe 2.2 on a $4.4 million property, give or take a little bit. Yeah, you might need to be at 80 cents of the dollar for that one. If it makes sense, it's at a higher default rate. So I don't have the P and I payments on here where they're supposed to be, obviously for the default rates. But that's something we look at in the due diligence process, figuring out cash flow. I mean, it's not too hard to go and figure, okay, 2.2 at a 7.9% interest only. Right. Actually, we could probably just go in there and just run some quick calculations across the board on this. So let's do this. So let's do this. Yeah, you'd have to look at obviously code enforcement liens definitely be something to worry about. I mean, that's why you're going to pull a full title and then call the counties is what I would do. So let's just do interest only payments. Is equal to. We'll just say the balance, change it to a dollar amount and divide that. So is that right? If it's at 8, if it's 15%, yeah, that's, that's per year for the year. Okay. And let's run a number all the way down and then we'll divide that number. So that's going to give you a better idea. If you pull rents on these buildings and say, okay, what are they supposed to be paying cash flow wise? Figuring roughly, just do a 50% expense ratio for the most part. Let's do default, insert default rates it and divide that by 100. Wow. Let's pay that year. So there we go. So now we can kind of see that their payments have gone from one number to another number. Right, There you go. So they went from 12 grand a month up to 18 grand. Went from 23amonth on this big one, you know, 22amonth to 55, from 6200 to 10 grand. Okay. So that's the idea of, see when you look at income, especially if they've got units under repair, what depend with the replacing, Obviously they go from a bad situation doors really, really quickly. Okay, so let's move on over. So that's Indianapolis. The Miami ones are the greatest area. This one in. In North Carolina, Fayetteville. Let's look at this one real fast. 22 units. And since these are interest only loans, I just drop in, you know, just the amount owed times the interest rate. And divide that by. Since it's showing 14.99 versus 1499, you got to divide it by 100. All right, so let's go in here. Let's look at the overhead of this one. Because this is 22 units. It's all kind of garden style. Right. So I don't know if it's this one unit or this other unit. So let's drop our little guy here because I don't think this is 22 units by itself. Right. I think it's also including this Address here too. That could be. Yeah, so it could be four units on that one. Let's go down the street here a little bit. I don't think it's anything behind them. See, this is from April 2012, so that whoever owned it has repainted it, made it look nice. Because this is from July of 2023. So maybe it's these. It's multiple addresses here, which is a possibility. So that's not a bad looking little property in Fayetteville. Right. I have North Carolina. You know, roof look current, look pretty decent. Something like this, you definitely want to go out, drive by, fly out, take a look at, walk the property. Not on the front end, but obviously part of your due diligence process. Now, I don't know what kind of process you know, this is. You know, you got a vacant asset here. You know, I don't know what happened when that. You want to take a look at that one. Whether it's smoker, fire, just damage window. You know, you see some signs at 4 ramp. 4 ramp. I don't know if this is a good area, a bad area either. That's another thing to take a look at too, is an area you want to own distressed assets at. Okay, so that's the Fayetteville one. Let's go over here. Let me pull up the next one here. Fayetteville's 22 units. This one is in Toledo, Ohio. It is 20 unit property. This next one. And it's this building here. And this is from May of 2022. This. I don't know if it's occupied or vacant, but it's kind of a neat looking little building. Right. Let's see what kind of other information we've got here. Apartment building. The building not rents for sale. Saxon House apartments. Sometimes you'll feel final listing for it. That's it. Price per unit, 67 5. Built in 1963. Obviously it's got a cap rate 20 units. I don't know how old this is either. All right, 1.35. Let's go back. Let's go back to the spreadsheet and take a look there. 1.35. Let's see what's going on this thing. All right, so they owe 975 on it. That's what they borrowed. So they're trying to get cash out of the thing. It's at an 18% default rate. Yeah. So they're trying to sell it at 400 grand above what they really technically kind of own or less. Because that. That's getting eaten Up. So their last payment on this one was made light rehab Multif family. They figured at 1.3. Okay. Bought in June of 2022. It matured January of last year. Last payment next due was February of this year. So they're five months behind. They were given an extension because it says true, but now they stopped paying. You know, depending on what kind of condition it's in, that might not be a bad. It's too bad there's not any interior photos of the property. Right. The default rate, got to sell it. Of course you got to check back taxes owed on these things, mechanics, liens, all that stuff, making sure that the vendors are getting paid. We've seen that on a lot of multifamily loans. Especially in default they're getting people come out and do the work but they're not paying the vendor. So that's a possibility. On that one in Toledo, I don't know if that's a good area or a bad area. But if we go back to the map, map, it looks like it's just off of a residential area. Right. Go back here. There's the apartment. Yeah, see it's right next to residential. A church over there. What is this building? I don't know. It's kind of a weird looking building there too. But I don't, you know, like I said, I don't know the condition currently, but somebody's got light rehab. It's near a residential area. Is there a university at two churches that the Methodist and the Apostolic Church Neighborhood Center. Might not be the greatest here, but you know, I don't see divine printing. Yeah, might not be a bad area there. Let's drop our little guy down here and see what kind of houses these look like. Yeah, it's not a bad little neighborhood. So you get some other multi family, maybe some bigger houses. That's pretty good size house. Look at that. That may not be a bad neighborhood. I mean I wouldn't mind on that area but it all depend what kind of condition the property is. So that's. Hey, may have to fly to Toledo. Let's. I think there's another one here. Let's see, where's the other one in Ohio at? Back to our spreadsheet. Toledo, Ohio and Cleveland, Ohio. This is the four unit. That's a four. We'll look at that later on. Okay, not so bad. The Chicago, Illinois. This one is. It's hard to tell if it's in a. I don't think it's in a very good area. Let's go Back to our map. The photo gives it like it's a rougher spot. Yeah, see it's. It's kind of a. Let's do this. Let's look through the aerial. Yeah. So dropped a little. Tilly dropped it. So it's like it's this building here, I think. Yeah. It won't drop us anywhere except right over here. That's smack dab, I believe. Oh, what is this? Somebody digging through the trash or dropping trash off there, lady? No, I don't know if it's a. See? Yeah, that's kind of a rougher. There's a multif family at a big discounts. Don't think I'd want to own that in Chicago. So let's go back to the spreadsheet. I'm just not a fan of having to try to foreclose or evict in Chicago. And that's 16 units. Same thing. Let's look at that. They owe five. They owe eight 72. Default rate of 45%. I don't know if that's how that's legal but guess so. And they gave it a value of 1.6. I'd be afraid this is a second lien. Maybe. Well, maybe not. 872. May it might be. Could maybe pick that one up up cheap maybe. It makes sense. All right, let's go to the next one though and we'll wrap up here. So this is the. This is a 10 unit. This one doesn't look too bad in Milwaukee. It looks like it's an old school building. It's been converted. I believe this is 91 ones and 12 1. It doesn't look like a school, like a three story 928 to 936. So I don't know if that's a good area Milwaukee or a rough area. Once again it's get some multif family on the board of some residential stuff. I think. Yes. You got some residential stuff down here. This is photos from five six years ago. We go back here to what it said on here when I was looking at something. 10 unit. Also here's the actual listing of it. Okay. So they're trying to sell for 310. Well that may be just the one unit. There was a description that popped up. Where is that at a 10 unit in Milwaukee. The unit mixes nine three bedroom and 12 bedroom. I apologize. So they're actually bigger units. Okay, here we go. Beautiful renovated apartment. Each unit features three bedrooms and one bathroom. They're rented for twelve hundred dollars. A month. So they've. Here we go. So we see what kind of work they've done on this one. Done some nice upgrades. Huh. And that's the thing. If they've done this upgrade and they're not paying because they probably can't get refinanced out, this is the opportunity to step in. Probably not to do any work on these things that might be advantageous. Right. That one's not a bad looking property. Okay, let's go back. Pull up the next one. Oops. Where did it go? That one they. Oh. 232 current balance. Right. 423 is a current balance. 423 is a current balance again at 45% default rate. They valued it at 860 after repaired. 560. So yeah, they don't have that much if their current balance is 4 or something. 423. Yeah. I mean it's 40k unit roughly. That's not so bad. So let's just go over here and figure. Let's just run some numbers here. So 420. So if you figure in 1200 a unit and there's 10 units. So that means you've got 12 grand coming in a month. Right. 12 grand coming in a month. Multiply it times 12 months is equal to 144,000. Basically that's your cash cat cash flow. Right. If you figure just a 50% expense rate. I don't know if it's individual metered or not. So I'm just going to do a ref 50. So basically your gross is $72,000. All right. You're technically $72,000. If you're buying this note at the. Let's see here at the 65%. 275. That's a pretty good deal. That's like a 25% cap rate. If you end up with a property Right now if you don't end up with the property and you bought paid 275 and you sell it at 423 even at the auction that's $160,000 profit. If you sold it at the 423 considering it's got a value of 860 after pair. I don't know when the dates of this are pulled for these ar. But that's going to be a potentially nice little nugget there. Might be worth it if you could get the seller to carry financing even on that purchase. Sometimes they'll do that and go from there. Right. Then the. The Cleveland is just a Four unit, it doesn't look that exciting. The Chicago one is a six unit with mixed use. We'll look at it. But the Hollywood, Florida, this is the one. They're both right next to each other, 400 to 430. So let's just do this one here. And you kind of see these are smaller complexes. It's like these look like these are. Let me pull this up here. Come on. All right, so let's click over here. North 19th Avenue. Hollywood, Florida. Sorry. 432 to 462 is the second one. So this is part of the. You see these little smaller 446, but this all goes down the street. This is part of this complex called the Colony Club. 400 is the other loan. So it's two separate loans for these buildings. I go back to the spreadsheet, different borrowers. Okay, so it's eight units. So it's 16 total units, supposedly across these two properties. 16 units and they're into for the same loan amount, 1.852. These are rehab. Original term was 11 month. They're now behind. They're now at 17% default rate. What's the balance? 1.8. So it's basically 3, 3.7 million on 16 units. And these are experienced. Let's see here. And they value at original. As's value was at. Was that 4.9? Yeah, 4.94. These two here. So they stopped paying it. Next pay date is February and March of this year. Matured in March. So these have been extended. Original date was in 2022. Yeah, they've been extended a couple times, maybe once or twice. And now they stopped paying in February and March of this year. That's next due. So maybe they. Yeah, so they are, you know, four and five months past due on this process. And I don't know the occupancy, but it's worth, you know, 5, 5.92 and you're in at 3.6. 3.6 is what the balance is if you add these two together. Together, right, yeah. 3.7. Sorry, 3.7. So offering those at 65 cents of the dollar isn't a bad day. But depending on what the lender want, they may not want that. Take that big a haircut, they may try to sell it to you at full legal balance versus the default, who knows, or what they lent on it. That happens. It all depends on an individual by individual basis and where it's at. But those guys, if you're interested in stuff, it's in our Basecamp group there for WC members 28, you know you've got access to that's in there or no you don't, you're not part of the WC inquiry anymore. But you guys can get signed up for that really easy by going to noteumbrella.com that's noteumbrella.com also guys we have our upcoming class this Friday, Saturday, Sunday so you have access to that as well. If you've signed up for our monthly membership by going once again, check it out. No buying for dummies.com is our workshop. It's 9.97. Normally we're running a 50 discount so it's 497 but the monthly membership is just 97amonth. The only thing we ask that you be a part of the monthly membership for six months. So somebody keep on. Any questions, any comments, any concerns, don't be surprised. We start sharing more information on these deals in the next next couple days as we do a deeper dive in this and get rock and roll. So otherwise guys, thank you so much for joining us here. Like I said, opportunities exist if you just know how to market make the right connections. If you're not finding the right types of deals it's just because I mean you're marketing but it depends on what type of deals are you looking for now are you being way too picky as well? Sometimes that happens. Well I only want this, this and this. Okay, well if you only want this and this, you know it is. But the great thing about our note our WCN membership guys is we upload tapes like this into there for you to take a look at, for you to cherry pick, you know first liens on residential reverse mortgages. Sometimes we'll see some tapes of second stuff like that. But there's a lot of opportunity for you guys to take a look at. So these 20 non performing multi family loans are just another tablet we get in on a regular basis from some of our sources. So hope you enjoyed it. If you guys want to dive into more information, check it out. It's out@weclosenos.com thank you so much for listening. Have a great day and hopefully we'll see you this weekend at the the Virtual Note Buying Workshop. Otherwise take care everybody. Bye. Hey real estate investors. If you have ever wanted to dive into the sexy side of real estate and become a note investor, not just somebody that owner finances properties or buys and sells on terms, but somebody who's actually buying debt from lenders, mortgage bankers, hedge funds on distressed real estate on both residential and commercial properties. Now is the perfect time. And guess what? We have our upcoming three day workshop here in just a few days on July 25th, 26th and 27th. That's right, that's a Friday. Saturday, Sunday. You can join me live on Zoom and our Note Buying for Dummies workshop. We'll go through the Fs of how to find fund and flip non performing notes at huge discounts without having to use your own money. And we'll show you all the different ways that you can make money being a note investor. Day one's all about how we find these deals from banks, hedge funds and how you can automate the process of connecting with these people and get tapes and listen to you over and over again. Day two is all about raising capital and marketing and we'll show you how to tap into thousands of IRA investors who are looking for deals to fund and how to communicate and how to contact them and get them to fund your deals. And day three is all about the flip the exit strategies putting deals together. We'll mix in due diligence. We'll mix in the marketing side along with the structure side. So much stuff in three days. Live on Zoom with yours truly, the Note guy, Scott Carson. Make sure you get signed up by going to Note buying for dummies.com or click on the three day workshop tab on our Workshop. Get signed up today as we're still running discounts and you too can soon become a no buyer. Sam Sa.