E317 | Luxury, Lies & Livestock: How We Turned a $1M Non-Performer into a Record-Breaking Win

The Paper Trail

Get ready for a wild ride with the Papertrail podcast, where they spill the tea on the crazy world of mortgage note investing! This episode kicks off with a jaw-dropping story about a Las Vegas asset that was more than just a bad loan—it involved a borrower behind bars, chickens running amok in the house, and one of their biggest turnarounds ever! They dive into the nitty-gritty of turning a non-performing loan into a success, all while dealing with teenage squatters and a property that had seen better days. With a blend of humor and real talk, they explore the wild ups and downs of the investment game, proving that sometimes the messiest situations lead to the greatest rewards. So grab your snacks and get cozy, because this episode is packed with laughs, lessons, and a whole lot of unexpected twists!

The Papertrail podcast takes listeners on a wild ride through the ups and downs of mortgage note investing, spotlighting a particularly zany case involving a luxury home just outside Las Vegas. Chris Sevigny recounts the rollercoaster of acquiring a non-performing loan secured by a million-dollar property. Things go south when the borrower ends up in prison for running unlicensed restaurants, leaving a teenage squatter in charge of the house, which is now home to chickens – yes, chickens! This episode is a tale of unexpected twists, showcasing the challenges and hilarity that come with investing in distressed properties. Chris shares how they navigated the foreclosure process while working with the squatter, ultimately leading to a heartwarming resolution where the young girl managed to clean up the place before moving out. It’s a perfect blend of real estate education and laugh-out-loud storytelling, reminding us that sometimes, investing can lead to the most bizarre yet rewarding experiences.

Chris dives into the nitty-gritty of the acquisition process, explaining how they spotted this hidden gem on a single asset tape – a glorified spreadsheet of loans. With a rough idea of the property's value and a decent mortgage payoff, they thought they were in for a sweet deal. But as things unfolded, it became a tangled mess of bad luck and wild surprises. From the borrower’s unexpected prison term to the discovery of a teenage girl living alone in a big house, this episode is a testament to the unpredictability of mortgage note investing. The hosts keep the tone light-hearted while unpacking serious issues like tenant rights and property management, reminding listeners that every deal has its unique set of challenges and surprises waiting just around the corner.

After taking back the property, Chris and his team decided to renovate rather than sell it as-is, leading to a remarkable turnaround. With a strategic plan that focused on what potential buyers actually wanted – modern kitchens and updated bathrooms – the investment of $150,000 in renovations ultimately paid off big time. The property sold for nearly $2 million, breaking neighborhood records and proving that with the right approach and a little bit of faith in the process, even the messiest notes can yield the biggest rewards. This episode not only serves as a case study in savvy investing but also as an engaging story filled with unexpected characters and hilarious anecdotes. For anyone curious about the world of note investing, this episode is a must-listen, jam-packed with lessons, laughs, and inspiring success.