🚀 Vacant and Vulnerable: Deep Dive Into a 13-Year Non-Performing Note in Killeen, TX
Are you ready to see what a real institutional distressed debt deal looks like from the inside out? Welcome back to our 50 Note Deals in 50 Days series, where we peel back the layers on active, off-market mortgage tapes. Today, we are analyzing Deal #6—a non-performing residential note sitting right in our own backyard in Killeen, Texas.
In this episode, Scott Carson ("The Note Guy") takes you on a literal drive-by and deep-dive due diligence trip an hour north of Austin. This property has been sitting completely vacant with 13 years of non-payment! Scott breaks down the raw numbers, the heavy interior rehab realities, the chain of custody through multiple investment funds, and a unique joint-venture partnership opportunity directly with the asset managers. Whether you are a note investor or a local fix-and-flipper, this case study is packed with actionable due diligence frameworks.
📌 What You’ll Learn In This Case Study:
- The Property & Market Background: An inside look at Killeen, Texas (home to Fort Cavazos/Fort Hood), its military-driven economic cycles, and why sub-$250k entry-level housing is highly demanded compared to Austin's $425k average.
- The Shocking Deal Anatomy: How an initial 15-year mortgage originated in 1998 resulted in a 13-year streak of absolute delinquency after the original borrowers passed away without heirs.
- Scrubbing the Financial Numbers: A detailed breakdown of the $71,000 payoff legal balance, which includes over $21,000 in advanced back taxes and municipal weed liens against an estimated $148,000 AVM.
- The ROI Math (Reperforming vs. Foreclosure): Why trying to modify this note yields an uninspiring 7.7% ROI, whereas pushing the active foreclosure to the upcoming auction block presents a potential $13,000 profit and an 88% annualized ROI.
- The Visual Due Diligence Reality Check: Why Scott physically drives assets or orders Broker Price Opinions (BPOs). Get the realistic scope of a $70,000+ structural rehab requiring a new roof, total stud-down sheetrock replacement, and wood rot remediation.
- Front-End Bidding Secrets: How to properly structure indicative offers using online data before spending money to pull full collateral files, assignment chains, or title reports.
- The Fund Partnership Opportunity: How you can joint-venture directly with the hedge fund on this asset (and others) where they provide the note financing while you manage the physical rehab and split profits.
🛠️ Take Action & Master Note Investing
Don't sit on the sidelines while institutional tapes are trading! If you are a rehabber or a fix-and-flipper ready to partner with the fund on this Killeen asset, email Scott directly at scott@weclosenotes.com or book a strategy session at TalkWithScottCarson.com.
Ready to learn how to analyze these non-performing asset tapes yourself? Secure your seat for our upcoming two-day virtual masterclass on August 29th and 30th. Head over to NoteBuyingForDummies.com to register for just $99, get instant access to previous session replays, and start building your fast track to real estate profitability.
Watch the Original VIDEO HERE!
Watch the Property Inspection 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 For Dummies Workshop HERE!
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