đź’¸ High-Equity Border Town Base Hit: How to Turn a $41K Eagle Pass Asset Into a 15% to 31% ROI
Welcome back to the 50 Deals for 50 Days series! In this episode, Scott Carson—"The Note Guy"—takes us down to the South Texas border to deconstruct a high-equity, re-performing note in Eagle Pass, Texas. If you have $40,000 to $50,000 in investment capital sitting idle in a low-balance Self-Directed IRA, this deal analysis serves as a textbook example of how to capture massive double-digit yields while keeping your principal highly insulated from market risk.
Scott cracks open a unique "scratch and dent" asset: a modified, 4-bedroom first-lien mortgage on a massive 2,931-square-foot home sitting on a full acre lot. Even though the borrower has a history of chunking their payments due to self-employment, they have successfully brought this account current, paying 13 payments over the last 12 months. This episode dives deep into the underlying math, showing you exactly how a small purchase price discount can secure a 14.3% net performing yield—and why an unexpected borrower default could actually cause your annualized returns to rocket up to over 31% through a rapid Texas foreclosure. Stop sitting on the sidelines; let's get into the data!
đź“Ś Key Takeaways & Episode Highlights
- The Property Profile: A spacious 4-bedroom, 2-bathroom, 2,931-square-foot home built in 2008 in Eagle Pass, Texas, situated on a sprawling 1.03-acre lot just a mile from the Rio Grande border crossing.
- Extreme Equity Insulation: With a market valuation hovering between $250,000 and $300,000 and a legal unpaid principal balance (UPB) of just $48,500, the investor sits at an incredibly secure 15% to 20% Loan-to-Value (LTV) position.
- The Performing Note Math: Buying the note at an 80% discount ($38,800) plus a standard transaction fee brings your total acquisition cost to roughly $41,000. Backed by a $523.55 monthly P&I payment, this creates an impressive 15.3% gross (14.3% net after third-party servicing costs) return on investment.
- Understanding "Scratch & Dent" Reality: The borrower is a self-employed truck driver who has historically paid in large lumps—such as dropping 5 payments at once. Scott explains why this pattern is normal for border-market self-employment and how to properly manage it.
- The Foreclosure Jackpot Scenario: If the borrower stops paying, a 90-day Texas foreclosure costing roughly $1,000 allows you to sell the asset at auction. Capturing the full $48,500 legal balance creates a $6,500 net profit in 6 months, yielding a massive 31.8% annualized ROI.
- Proactive Note Management Strategies: How to stabilize irregular self-employed borrowers by instructing your third-party servicing company to split monthly obligations into bi-monthly payment schedules.
- Due Diligence Sourcing Checklist: Key steps for verifying the cross-border work history, auditing the collateral document package for foreclosure readiness, checking property taxes, and reviewing multilingual borrower communication logs.
🛠️ Take Action & Partner with Scott Today!
Don't let the second half of the year slip away without adding consistent passive cash flow to your portfolio. Take immediate action right now:
- đź“© Submit a Bid or Partner: Want to pull the trigger on this Eagle Pass asset or have Scott hold your hand through your very first note deal? Reach out directly via email at scott@weclosenotes.com.
- đź“ž Schedule a Strategy Call: Have questions about deploying your capital safely into distressed or performing debt? Book a live call directly on Scott's calendar at TalkWithScottCarson.com.
Watch the Original Video HERE!
Book a Call With Scott HERE!
Sign up for the next FREE One-Day Note Class HERE!
Sign up for the WCN Membership HERE!
Sign up for the next Note Buying
