Home / How I underwrite / Wilson, NC note
Real deal, paid off
Bought for 12 cents on the dollar. Paid off in full.
A real note I bought, from the first look to the payoff. This one went into my own self-directed IRA, so you can see the standards I hold every deal to.
| Location | Wilson, North Carolina |
|---|---|
| Property | 3 bed, 2 bath, built 1930, about 2,100 sq ft |
| Note type | Seller-financed contract for deed, first position |
| Value | About $110,000 (broker's opinion of value) |
| Balance owed | $14,438, with about 4 years of payments left |
| What I paid | $13,056 |
| Price vs. value | About 12 cents on the dollar |
| Outcome | Bought in 2024. The borrower paid it off in full. |
Why I liked it
- The person: the borrower had a spotless payment history.
- The property: a solid house worth many times the balance owed.
- The paperwork: first position, with documents my attorney reviewed before I paid.
- The price: I offered first, negotiated, and paid $13,056.
What I checked before I paid
- A broker's opinion of value, ordered once the seller and I had a deal.
- The rental value, as a second check on the property.
- The full payment history.
- The documents, reviewed by my attorney.
- Servicing costs, taxes and insurance, before I ran the real numbers.
How it ended
The borrower kept paying, then paid the note off in full. The money went back into my IRA.
Not every deal ends this cleanly. That's why the cushion matters. You plan for the deal that goes wrong, not the one that goes right.
Note: This was my own self-directed IRA. No lender money was involved. Past results don't guarantee future results.