When Eviction is a Good Thing: Helping Kids and Making Money with Jamie Bateman

00:00:00
In this episode of the From Adversity to From Adversity to Abundance Podcast podcast, we're going to do something a little bit different. You're going to get a chance to hear a case study that I presented in a group of mortgage note investing experts that we do monthly. We have, it's called be the bank broadcast with Justin Bogard. And I was able to present a case study showing how a few years ago, through a mortgage note purchase that we did an investment that we made, we were able to not only make money for ourselves, but also make money for our investor as well as rescue. Not physically, but we were able to rescue children out of a an awful environment.

00:00:48
As soon as we were eventually able to get into the house, child protective services were immediately called. And so I like to think of this as a win, win, win. It was a win for us because we made money. It was a win for our investor because they made money, and it was a win for the occupants of the home. So this shows how mortgage note investing can have a fantastic social impact, human impact, changing lives for the better, while we're making money, doing well by doing good, if you will.

00:01:21
So, like I said, this is a little bit different than your typical episode. And I appreciate Justin Bogard for allowing me to share this on my podcast. And I think this is, this is one you're going to really, really enjoy. And if you have any questions about mortgage note investing, whether as a passive investor, passive accredited investor, feel free to reach out. We have an integrity income fund which aims to provide an 8% annual preferred return paid monthly.

00:01:56
And we also have a mentorship program where you get one on one mentorship with me, as well as Shantay Duffy or Mark Blunden, who are all three of us are experts in the space, so I highly recommend reaching out if you have any interest, either as a passive or active mortgage note investor. Thanks everyone. Enjoy.

00:02:20
Welcome to from adversity to From Adversity to Abundance Podcast, the go to podcast for real estate entrepreneurs seeking not just to thrive, but to conquer with resilience and mental sharpness. Each week, join us as we dive into the compelling world of real estate through the lens of mental fitness, where challenges transform into opportunities. Get ready to transform your mindset and expand your understanding of what it takes to succeed in real estate. Let's explore these stories, stories of triumph and resilience together.

00:03:08
Oh goodness. I still got some issues with graphics here. Pretend like you didn't see that. Okay, we're back.

00:03:15
Who's running this show, man? I don't know. I don't know. Somebody needs to be fired. If it goes well, it's.

00:03:22
It's me. It's my case study. But if there are issues, Justin's running the show. Just kidding. In fairness to Jamie, I took his original case study, and I made some animations.

00:03:31
So, Jamie, I'll do my best to kind of with you as you do this, but, uh, this is Jamie's case study, and I'll let Jamie kind of explain it from here, and I'll try to jump in with the rest of the guys, too, when we have questions, because I'm sure that we will. Yeah. Fire away. I don't think. Chris.

00:03:48
Chris, you're afraid to chime in, aren't. You, Chris, is this note been. Was it bought as a performing or a non performing asset? When you bought it was performing, yeah. So the.

00:03:58
The. I think the title was about can foreclosure be a win win win, basically. Sorry. You know, sometime no, all good. But sometimes note investors get a.

00:04:08
And lenders get a bad rap for. For closing. You know, like, we're trying to pick. Kick people out on the street, and we're just. Yeah, the big bad bank.

00:04:16
Right. We're trying to take houses over the investors. We don't care about people. It's just all about the dollar. But not true.

00:04:23
This is not true. Now, you'll see through this one, at least. That foreclosure can be a good thing, really, all the way around is a bit of a sad part of this story, too, but. But it does have, uh, I think, a happy ending. So I remember looking at this one.

00:04:40
So I'm interested to see the story, because I do remember when this was available to purchase, I ended up passing on it, so. Really? Yes. Well, I bought it a while ago. Well, December 2019.

00:04:50
So to answer your question, Justin, it was a performing contract for deed that I bought from someone on this call, not JB. Well, look at me. Wasn't me. It wasn't me, either. It was one of my, you know, I got into notes in 2018, and I would say, so it's probably a year and a half, two years into notes at this point.

00:05:13
So not brand new, but not, you know, I still had. I hadn't purchased, you know, 7500 notes or whatever, so still had a lot to learn. So I was. I was looking for performing assets at that point only. So that's what this was.

00:05:29
And it did have equity. You can. You can go ahead. Um, I did a joint venture. We don't focus too much on that in this.

00:05:36
In this case study presentation, but it was, uh, actually a friend of mine, for those of you looking for partnerships or joint ventures, whatever you want to refer to it as, um, a friend who I've. I'd known for many years, reached out to me because he saw some of the posts I was putting on LinkedIn and I, we were. We were actually lacrosse buddies back in college, and, um, so it wasn't some random person who I just took their money and ran. Uh, so. But.

00:06:02
But he was the money trusted person. And. And, uh, he was the, quote unquote money partner, um, and I was the operational partner. Um, we're both making decisions together. Big decisions.

00:06:14
But I'm managing the day to day of the. The asset. So who got what part of the split of. Well, because it was performing now, would I do this again? Probably not, but in fact, I don't actually recommend joint ventures on performing assets.

00:06:28
But I got the 25, so, yeah, so I had no money in the deal. That's cool. Purchase terms, you can see them there. Chris ripped me off. No, I'm kidding.

00:06:46
Great price. Great price on that. Now that we have a performing loan for 13% yield today, that was. Yeah, no, I gotta say, I know a couple places. Yeah.

00:07:01
And I think the property value on this slide is actually a little bit of a teaser. I mean, I think we actually initially thought it was higher than that. So, you know, on paper, there was more equity, but there's still plenty of equity in my. In my view, on this. This deal, especially for CFD.

00:07:16
So what is this? A little. Little house in Michigan? What's it, a 32310 mandy, that's a good. I'd have to go back and refresh my memory.

00:07:25
I think a three, two. It wasn't a, you know, tiny 1600. This is probably an old house too, like. Yes, definitely an old house for. For sure.

00:07:39
Um, and there was actually some acreage to it, but, um. Three bed, three baths, 1100 sqft. Thank you. You know, you remembered that or you looked that up. He's got.

00:07:54
Big yard. I remember that. It did have a big yard. Yes. Being your first.

00:07:58
This was your first note, you said. No, no, it wasn't my first note, but I first. Within the first ten. What do you like about it? There was equity coverage.

00:08:08
It was performing. I bought it from someone I trusted. Trusted.

00:08:18
That's ten sphere. I still trust Chris, but, yeah, those were all things that I liked about it. It was performing. Strong yield, strong coupon rate, you can see there.

00:08:34
And equity on paper. And I actually did end up having equity. Yeah. Your ITV is only 58%, so you got plenty of equity to protect you. Yeah.

00:08:44
And for those, we covered this a little bit with Jay's case study, but contract for deed, we're not going to go too far into that, but it's a little bit different than a note in mortgage or note in deed of trust, if you're unfamiliar. Some nuances there. And. Yeah. So ultimately, we were on title and the borrower, even though they're not technically a borrower, the buyer is purchasing the property over time.

00:09:09
So this was a contract for deed. Just wanted to make sure that was fair. Yeah. All right. So almost a year later, she stops making payments.

00:09:19
Actually, there were two people on the, on the contract. And so we sent a demand letter, you know, three months after that and starts the four, well, forfeiture process. So was there communication at all with the borrower or. There's no communication. So, um, you'll.

00:09:39
You can go ahead. We'll get to it, because. So there was communication, to answer your. Question, in that time period in September of 2020, when they stopped making payments, like, was there communication about it? There was, yes.

00:09:51
And she kept. So what ended up happening was she got hooked on drugs. I mean, we didn't know this at the time, but you'll see some of the evidence and I fall out of that. But she would call up the servicer and kind of, you know, give a sob story and literally cry on the phone. And, I mean, not saying that was fake or anything, but.

00:10:13
So there was an effort on our part to work with her. But frankly, my inclination, you know, a lot of people ask, I still get questions like, when should I send the demand letter? It's like, immediately. That's how, you know, I don't wait at all. And.

00:10:28
But I'm still open to working with, with people. But it's when you get a letter from an attorney, usually, that, that hopefully, you know, makes you realize it's serious. And then the whole point is to bring, in my view, is to bring the borrower to the table so you can have a discussion. And we did end up doing, as you see here, a loan modification, and we have the terms later on here. So before the loan mod, right at the point of the loan mod, these were the terms there, and then it will load the modification terms.

00:11:02
So we forgave quite a bit, you see here. And so the total payoff was over 61,000. And then what we did was raise the principal balance. So this is a little, I guess, tip for newer node investors is to, if you can do a modification where you can raise the principal balance, but keep the p and I about the same or lower. Not legal advice, I'm not an attorney, but that still should be considered not a new loan, not a refinance.

00:11:38
So you should not have to re qualify the borrower for their ability to repay. But if I can get her reperforming, and now I have a UPB that's higher than what it was last week, so to speak, that adds value to the asset itself. So as, as we all know, as buyers of notes, the principal balance is a big factor in that. So we were able to get the loan modification executed with a higher principal balance. She's motivated to do it because her monthly payment comes down and her total payoff comes down considerably, resets her term, and she's, now, we're not, we're not moving forward with the forfeiture either.

00:12:20
So she's, there's a lot of reasons why she's motivated to agree to this. So she wanted to be current and she needed dollar 25 a grace per month in her penthouse payment. Is that what the solution was now? Pretty much. She did also put $1,000 down, um, which I guess we don't, we don't have on this slide, but.

00:12:43
Oh, there it is. It's on there. Yeah. Yeah. Now, would I do this exactly the same way again?

00:12:49
Maybe not, but this is what we did then. So, yeah. Forgive the same level. Would you forgive the 11,000 again?

00:13:02
It was, it's sort of knowing what you know now. Exactly. Well, yeah, knowing what you know now, hindsight, it's always 2020. Yeah, I think it would have ended in this case, it would have ended the way it did regardless. But that's a lot to forgive, to answer your question.

00:13:20
Go ahead, Chris. One thing we've done is because we did this similar, and then we kind of shifted a little bit where we defer it to the end of the loan. So it's not interest bearing. But we also, in some cases have said if you make twelve consecutive payments on time, will knock 1000 off or 2000. So it gives them incentive of, hey, look, you have, in this case, it would have been $18,000 sitting out there.

00:13:47
Hey, look, if you make twelve consecutive payments, I'll knock $3,000 off. So if you pay for six years, it's wiped or, you know, something to give them some incentive that, hey, look, I'm literally, you know, $3,000 a year is $250 a month, roughly. So I'm paying 400 to get an extra 250 knocked off. It's a pretty good score. But if they also go back in default, then that gets kicked back into play.

00:14:16
So. Yeah. That was legally collectible for you. Yeah, yeah. I mean, a lot of people do.

00:14:22
I never really, I'm probably in the minority here, but never really did the trial payment plan thing, only because I felt like it was so much work with the servicer to get that set up and then do the loan mod and I. The way we present loan mods typically is three options. The more they put down in cash, the better their terms are going to be. And. But I just, I guess it's also because I'm impatient and I just don't like to wait them out.

00:14:52
But a lot of people will do a six month or twelve month trial payment plan and then, and then do go to the modification depends on the. Loan to like a CFD in Michigan, there's no reason to do a t trial payment plan then a mod because it's really not hurting you. Where in Ohio if you had to foreclose, it's a big difference because you're starting all over and it can make caution. Yeah. And Michigan's an interesting state.

00:15:23
We did do a, for a forfeiture, but you'll see that the timeline ended up being more like a, a foreclosure. Along the lines of what Chris suggested or what he's done, the deferral method. I like that as well. And then you know what this does as note investors, because most servicers charge a little bit more of a premium when it becomes non performing, when it gets that 60, 90 day status. And the only way to get that kick back down your monthly service payment that you owe as the lender is you can do one of these things.

00:15:53
And that does help you. So, you know, the deferral, I've just done deferral recently. That's why it stuck in my mind that I went from, you know, paying $90 a month or whatever and went back down to whatever my normal rate was. So the borrower got caught up and. Good point.

00:16:08
I still owe the payments in the back end when they sell the house. But. Yeah. So that helps you as the lender as well. A little bit of monthly fees there.

00:16:15
Yeah. So you can see we were trying to work with her. What ended up happening? The neighbors and I think I got some voicemails and I don't even remember screenshots from the neighbors. Because you're on the deed, I'm on the right.

00:16:32
So the township ended up contacting me because I'm on the deed and because the neighbors had reported blight. They also just didn't get along with each other. And I think they're gonna be some pictures, some extra pictures here on the blight once we get there. But you tell me when to switch over to those. I have to switch to a different screen.

00:16:52
Yeah. So she had, as you can see, possibly see here, there's a, essentially a mattress, vomiting rv. And I say she. There were two people on the, on the land contract, so male and a female couple, presumably, but he, I think, left the picture. And so the neighbors reported this situation that obviously didn't like.

00:17:16
And, um. So one thing to say. Well, we can move forward, Justin, I think I'll mention it. Sorry. Um, what was the fetish with mattress now?

00:17:25
I have no idea. I. What did you say, Chris? What was the fetish with mattresses? If there.

00:17:31
I thought you're going to say who. Did anybody rip off the tags that they weren't supposed to rip off?

00:17:39
I don't think that was the worst thing going on here. But, um. But yeah, it's certain things, it's like certain situations, I don't want to know. I don't, I don't ask questions.

00:17:52
So I guess there was a demand letter sent, you know, in reference to. So this. This fifth wheel is on the site, on the land. Yeah, yeah, exactly. Correct.

00:18:05
And so I guess this blight. And again, this was several years ago, so some of it I'm trying to remember, but I guess this blight gave us an option to essentially, you know, threaten her with eviction if she didn't clean it up. And again, I'm going to get fined by the township. Um, so it's on me to deal. Likelihood of her getting it out of there is next to nothing.

00:18:24
So eventually. So eventually she did, but it took quite, uh, that you can see, you know, however many months that is, six months, five months. So it happened over time, actually. Do you have that link, Justin? Let's just.

00:18:40
I. Do you want to go to the slides now? The blight slides, if you have that. While you're going to those, I'll mention we have a loan in bankruptcy right now. That is the same thing where they're getting blight because they have all this stuff in the front yard.

00:18:53
So the city's trying to basically fine us on the property because it was a CFD and we are in bankruptcy. We had to get like, motion from relief to actually go get the yard cleaned. And it's like. But what does that get us? Because we need, like, court permission to go clean the yard.

00:19:12
But we're like, well, can we get relief? Because he's not paying for it? And they're like, no, we're just giving you permission to go clean it. And I'm like, that does mean no good. Can you see the pictures that I'm going through?

00:19:22
Yeah, yeah, sorry. Just, no, that's good. Yeah. So this was just some of what was in the yard, and then there was a violation. So what was nice about this situation?

00:19:40
And this really depends on the person you are dealing with in the township, but this guy and I ended up kind of bonding a little bit, and he was on our side. So now I've got kind of boots on the ground where he'll drive by and check out the situation. And as opposed to the township harassing me and sort of being against me, I showed him that I wanted it cleaned up just as much as anyone else did. And so I had an ally with the township and an ally with the neighbors as well. How much did it cost to clean up?

00:20:15
I don't know. She got this removed herself. This was her. Okay. Oh, wow.

00:20:21
Okay. That's impressive. She got that done? I don't know. So she did that and you still.

00:20:27
Well, go ahead. She didn't. She didn't end up performing. So we can move forward the next. Next bullet, next slide.

00:20:38
Yeah. So she. I think she made one or two payments after the modification. I don't know exactly how many, but we ended up moving forward with forfeiture. It took a long, long time, and I ended up.

00:20:51
You can go ahead, Justin, because I'm not sure. Was it due to Covid or was it just overall? Because this is during. It was during COVID times, and we. We had a Zoom call and that.

00:21:02
Where it says the. The boyfriend attended court and just should be barbers. Like, apostrophe possessive barber's boyfriend. Anyway, don't get hung up, Jamie. Come on and keep going.

00:21:15
Well, you're the wordsmith, the deep creek lake guy. But. So.

00:21:22
But the point was that I thought she was summoned. They were both summoned to court. And we have this. Like you said, chris, it was during COVID so zoom, you know, court hearing. I was sitting right where I'm sitting right now, and the judge is there, and he shows up, this.

00:21:37
This guy in his truck. And basically, he was just scared and just wanted to make sure he wasn't going to jail, is what it boiled down to. I think he'd already moved out of the house. He wanted nothing to do with it. And he was like, no, I'm good.

00:21:49
And she, she didn't show up at all. So that didn't help her cause. So, um, the judge, a week after that court hearing, um, signed a judgment, and then they have 90 days to, you know, redeem. So the, the 90 days really ends up. It's one of those things that's there to protect the borrower, to protect the occupant.

00:22:14
But in this case, we're going to go through some of the pictures and unfortunately, her kids were living in this really absolutely disgusting environment. And we're not able legally to get inside the property. We're not able to do anything until, until the redemption period ends. And child protective services apparently was called instantly, you know, as soon as they got, got in there. So that's, again, why certain things, I just, I didn't ask further questions, but it was like, no question about it.

00:22:48
They just immediately called CPS and I don't know, you know, what happened after that. I mean, I do know that you can go ahead, Justin. It took five dumpsters and $11,000 for the trash out. And again, that was after the blight cleanup. Not including the blight cleanup.

00:23:06
Yeah. Um, looks like a rental. Clean out. Yeah, 10,000. Yeah, it says 10,000.

00:23:13
I know, I think was like 11,000, but, um, five dumpster loads. Large dumpster, you know, full. Yeah, full size. The big. Yeah, 40 yarders.

00:23:21
Yeah. Um, actually, you want to go trash out pictures? Yeah, that'd be good.

00:23:34
This is why I don't touch cfds anymore. I think one thing, it doesn't matter whether it's a CFD or note, is understanding the conditions of these properties. A lot of comps I've seen recently from sellers are as if it's a newly renovated or updated property that recently sold and they're trying to use that as a compens. Got a loan that's two, three, four years behind. And this is most likely what the inside is going to be more looking like.

00:24:03
And, you know, for example, we had one recently, about two years ago in one of my older funds that every website said the property was worth 100,000. Propstream, Zillow, redfin, BPO, drive by. I think it ended up selling for like $22,000 because the inside was so destroyed and gutted and so forth. It was basically starting over from scratch on the thing or should have been knocked down. And I think people need to understand that when they're dealing with these types of assets that this is more typical than being able to see the actual floor.

00:24:40
Yeah. And those are small. Those are not that large a dumpsters. Those are only 20 yard dumpsters. Oh, really?

00:24:46
Yeah. They make forties. We cleaned one out here a year and a half ago that we took 740 yarders out of it. All right. So.

00:24:55
But, yeah, that's still a lot, regardless. Oh, they got Jumanji. That's cool. Oh, monopoly, too? Yeah.

00:25:03
There's treasures in there. You can see the coolest item when we go through the hoarding. The other thing to Chris's point is, you know, when you're doing the modification, or maybe you're doing a conversion from a CFD, that's a good time to at least get pictures of the interior, potentially, you know, if the borrower is motivated to work with you, then you can ask them, you know, get their permission and get an interior inspection done. Oh, yeah. Okay.

00:25:28
So there's more than just the dumped dumpsters there, Jay? Tires. That's right. I forgot about the tires. The tires are always a challenge to deal with those.

00:25:37
I'm tired of this. Oh, my God. You are bringing a roll tonight, Justin. Must be the vitamin water. There must be.

00:25:48
Well, you can tell they worked out the treadmill kept. I didn't even realize that was a treadmill. Hey, you can't, because there's too much damn trash on. I was looking at the box. I said kaplan.

00:26:02
I'm like, oh, are they, like, a high. Higher education scholar, you know, taking courses? Right.

00:26:09
Oh, wow. Yeah, the basement. I think this. The basement gets pretty nasty. Um, is that a tempur pedic?

00:26:16
It's like fecal matter. And it is amazing to me that these tires are willing to live in that type of condition. It just blows my mind. Well, and that's really the. That's really the point I want to get to, Jay, is that, look when you're.

00:26:31
Okay. And the part I forgot to mention is there were. There were meth charges that came up. I don't know if that was on the slide, but. No, it wasn't.

00:26:37
You know, once.

00:26:40
Once drugs take a hold of you. Like, this is not. This is not a presentation about stay away from drugs. This. This is your brain on drugs.

00:26:47
But she doesn't have any more control. You know, it's like it's. She's gone, and it's like someone has to step in and save her and the kids from this situation. And I'm not saying I'm Superman. And we swooped in and saved the day, but they weren't gonna.

00:27:03
This wasn't gonna fix itself. No, this problem? No. So I am. I do feel good about getting at least the kids and hopefully her into a better situation than where they were.

00:27:17
Not to derail the sad subject too much, but have you guys seen the series or the front picture of the series called the boys on prime? No, no. This little happy face up there on the wall that looks kind of like part of it. Wonder if you saw that movie. Sorry, I derailed us.

00:27:40
This room isn't too bad. You like a nice blanket. You see the carpet?

00:27:49
Registered heater.

00:27:53
This one in 337 and. Sorry, nightmare on Elm street. Yeah, this is. Did you make money on this? Wow, that's.

00:28:01
That's what I'm waiting for. How much money make on this baby? Oh, hey, Chris, you can use that water heater in your house. Yeah, well, I don't have a place for a full. I only have tankless, so I have to find room.

00:28:15
The toilet's broken. Wow, it's hard to believe somebody actually lived in here. Like, how. How do you live in there? Just crazy.

00:28:27
Oh, yeah. You guys see wild. Anything you would, anything you would have done differently by this point. I mean.

00:28:39
The only thing, again, times today is different because back then again, there was probably. You're like, there might not be enough equity in this. I think the only thing I'd say I would have done is maybe again, pause a little bit on the, um, you know, wiping out that extra. It didn't make a difference because you got the property back and the forgiving component would probably be the one that. It was a bit.

00:29:05
Yeah. Too generous and premature, I would say, on that. Yeah. And it did impact your profits because you end up getting the property. You don't have to foreclose and spend more money.

00:29:19
And on it, I'd say, Jamie, I. Probably would have done the same thing, being one of my first couple of notes. Well, yeah, I know today, and knowing what I know today, I wouldn't even hesitate. I would. I would be sending out the notices and going as far as I can unless they can prove without a shadow of a doubt that they deserve to get a modification.

00:29:39
If I would have known the situations like this and stuff with drugs and kids and stuff, I would have done. Done what I can to protect the ones that need protected. And. Yeah, got this property back. So we ended up listening.

00:29:52
When it comes to drugs, it's just like, it's that. Yeah, it's not the same person anymore. You might not be able to return from it. Right. You know, so they.

00:30:01
She may never get. Right. She or he, whoever was right. All right, so we get that. We ended up listing a property and we sold it, um, for sixty six k.

00:30:12
Oh, cool. Um, nice. So by this time you've had, you bought it for 34, you got at least eleven into it, plus outstanding costs as well. So you're probably easily 50 to 55 into this. Yeah, I think we're going to, well.

00:30:27
Actually pay some payments. All right, we got. But there's another. There we go. So here's another tip.

00:30:35
Don't hesitate to file. I did not expect that to come through. We just filed, there was water damage from a pipe bursting. Yeah, I think it was actually two separate claims, but did not expect that, honestly. But it just, they approved it, so.

00:30:50
Helps your bottom line right there. I did the same thing recently with something, a house, not to this level, but it was, it was a house in bad shape and the water pipe broke during the winter and it ruined some floors. And I got a few thousand dollars back from that. Nice. Or have an FBI claim.

00:31:05
I mean, I don't think there's a real big downside to that's why you're paying for it. I mean, you're trying to protect the investment. That's right. The thing I find crazy is it's cheaper to insure a CFD than it is to lender place insurance on a note. Wow, I did not realize that.

00:31:25
Yeah, I'm not, I'm not, I am, I don't like cfds. Okay. I, if I'm going to buy a CFD, I'm converting it. I don't want cfds in my portfolio. I think this is a universal agreement.

00:31:40
On that, or I will make the seller change it over. I've got two right now, interestingly, in Michigan that are being changed over right now before I buy them. And I'm making the seller pay all of the cost to meet his obligations of the contract. We've got one in a state right now where CFD, the borrower passed away, the daughter wants to keep it going. And we're like, well, because it wasn't also recorded.

00:32:07
We're like, we can just put this in your name. Like, we don't, I mean, just, we can roll this right into your name and put it as a mortgage and note. And here you go. And it's like, please. It's like, I'm begging you.

00:32:18
Like she's like, you'd really do that for us? And I'm sitting thinking, I would love to do that for you.

00:32:26
Yes. So you can see the total, you know, see the numbers here. FPI payout. So net proceeds from the sale was a little over 60k. Insurance payout.

00:32:37
Eleven, almost eleven five. That was a big, big bump. Just additional, you know, property taxes, holding costs, et cetera, were 8800. The principal return means that's what my JV partner had put in. So originally we had a slide that had his whole breakdown of his return, but nobody really cares about that so much.

00:33:01
What was the whole timeline? Sorry, two and a half years. I almost missed that too, on the slide, but 2.5 years. So it did take a while. I mean, that's what people.

00:33:10
That's the other thing I wanted to mention. These people, you know, CFDs are not necessarily a three month forfeiture. And you just have the property, like many of the gurus might claim. Now, she was paying for a while, so that was a good bit of that. Two and a half years was her paying and then.

00:33:27
Yeah, because she paid for a year. Right. Then she stopped. So really you're 18 months into the. The default stage.

00:33:35
Yeah, something like that. Yeah. So. But it still was not, you know, it's not a three month, three to six month process. I mean.

00:33:41
Well, none of it is. I mean, let's just be realistic. You're not going to get it back in two months. It's just not right now. So we say total income, which includes profit, includes everything above and that gross return.

00:33:54
And the IRR there would be just, to me, if I was using my own money. No JV partner, you can say that my return was infinite and his return was less than those was 75% of those numbers there at the bottom. Good return for sure. Still good for him, for my JV partner, good for me. I learned a lot.

00:34:20
I made money. Good for the kids, good for her. I would like to thank the borrower and good for the neighbors, good for the township. I assume someone has fixed up the property and it's in nicer condition now. So knock it down.

00:34:37
Yeah, quite possibly. Should have sold it to you for more.

00:34:45
Got a good deal on it too. Good lining in there. 20 something thousand dollars, man. Right. Well, if we went.

00:34:52
I have some other case studies for a few months from now, if you, if you want to see one or two I've lost money on. But, but yeah, you want for like. A $100 that ended up. You did load of money. Yeah.

00:35:03
Oh, yeah. But I've also include that one in the other ones too, though. I have, I have a YouTube video. It's how. How we turn $2,000 into 18,000 or 20,000 or something.

00:35:17
I bought that one from Chris for a $100. But main takeaways. Not every investment will be smooth sailing. You can fly through these. Justin can't control the borrower.

00:35:27
You know, in a lot of. That's why it's like you just got to be okay with, especially with these npls. I didn't buy it as an NPL, but you don't know how it's going to go. It's either going to go through the borrower or through the property. But that could take on many forms.

00:35:43
And you need to be okay with all of those. You can't, can't control. You can't predict human behavior, especially if drugs are involved. So go ahead. I think, yeah, kids were safe from an unsafe environment.

00:36:00
Multiple exit strategies. Equity at purchase is key. Can't guarantee it. But when in doubt, file an insurance claim and communicate often with our investors. We didn't touch on this, but I quarterly would update with a formal slide presentation.

00:36:20
Actually my JV partner, and so his money was tied up for two and a half years, which is kind of a long time when you're going into the deal. And although it was supposed to be performing. But yeah. So communicate often. I mean, many times you're passive investors in a fund or your money investors, your partners, they don't necessarily want to be involved in the day to day, but they want to know that you know what you're doing and that they can reach you and that you're communicative and you're not going to run and hide.

00:36:57
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00:37:14
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