Deal Structure & Timeline
The investment is structured to provide clear paths for acquiring either the CFD receivable pool or the physical rental assets, contingent on the Sheriff Sale outcome.
Investment Paths
Two distinct offerings tailored to different investor profiles.
CFD Receivable Pool
Assignment of seller’s interests in 5 seasoned, performing Contracts for Deed (CFD).
This is an assignment of the seller interest, providing rights to the payment stream. The seller remains servicer post-closing.
Rental & Distressed Bundle
Value-add bundle: 4 occupied rentals + 1 distressed rehab project.
This is a direct acquisition of the real property, with the seller contracted for property management and rehab coordination.
Execution Timeline
Key phases from acquisition to stabilization. All timelines are estimates and subject to change.
Month 0-1
Phase 1: Acquisition
Acquire Sheriff's Certificates, finalize Receiver authority.
Month 1-7
Phase 2: Redemption Period
Receiver manages assets, collects payments, and handles operations.
Month 7-12
Phase 3: Stabilization
Take possession of non-redeemed assets, begin rehab on distressed properties.
Year 2-5
Phase 4: Operations & Exit
Manage CFD and rental portfolio, execute disposition strategy.
Key Risks & Mitigants
Redemption Risk
The original owner may redeem the properties.
If redemption occurs, the investment in the Sheriff Certificate is returned with statutory interest. You would not acquire the underlying real estate. The exact redemption period duration is pending court confirmation.
Receiver Authority
Operations are managed by a third party.
During the redemption period, a court-appointed Receiver controls all property operations and cash flow. The investor has no operational control until the redemption period expires.
Title & Legal Risk
Potential for unforeseen legal challenges.
All properties are acquired subject to any and all existing liens, encumbrances, or clouds on title. While title insurance will be sought, unforeseen legal challenges or appeals could delay or complicate final ownership.