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Case Study: Due Diligence on a Tyler, TX Nonperforming Note Deal

Jan 27, 2026

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Welcome to this episode of the Monday Money Coaching Call. Look, it is absolutely freezing here in Austin, Texas. We are talking 18 degrees, which basically means the entire state shuts down because—let’s be honest—nobody here knows how to drive on ice. So, while the roads are slick, we are chilling inside where the coffee is hot, and the deals are even hotter.

If you missed our massive livestream this past Saturday, don’t worry. We spent over two hours breaking down a tape of 3,067 non-performing first liens. But for today’s coaching call, I wanted to peel back the onion a little further. We are doing a deep dive specifically into the remaining 200+ Texas assets. Why Texas? Because it’s the fastest foreclosure state in the country, and when you combine speed with equity, you find the magic.

In this episode, I’m walking you through my exact process of filtering a massive spreadsheet—hiding the columns that don’t matter (looking at you, "QM Flags") and highlighting the ones that equal profit. We take a serious look at a specific asset in Tyler, Texas. This isn't just looking at numbers; we become digital detectives. We look at the borrower's emotional equity (solar panels and garden gnomes count!), the "Zillow Zombie" values, and even do a Google search that reveals the heartbreaking backstory of why the borrower likely defaulted.

We also tackle the difference between chasing "Subject To" deals versus buying the Non-Performing Note. Spoiler alert: You aren't getting a massive discount on a note that is only 90 days late. We run the math on calculating yields, determining legal balances, and deciding when to aim for a re-performing note versus when to accept that a property is headed for foreclosure (like a massive upside-down property we found in Dripping Springs).

In this episode, we cover:

The Texas Deep Freeze: Why staying off the icy Austin roads is the best investment decision you can make today.
The 3,000 Note Breakdown: A recap of the massive tape we analyzed on Saturday and where to find the remaining opportunities.
Geographic Breakdown: Mapping out opportunities from the Panhandle to the Valley, including Dallas, Houston, and the Piney Woods.
Spreadsheet Mastery: How to filter data efficiently—calculating estimated legal balances, equity percentages, and hiding useless columns.
The Tyler, Texas Case Study: A full breakdown of a property with 82% equity, analyzing photos, tax records, and potential 17-19% cash-on-cash returns.
The "Human" Element: How a simple Google search revealed a borrower's personal tragedy and how that informs our strategy.
Bankruptcy & Foreclosure Plays: Analyzing a deal in Montgomery, TX involving a bankruptcy plan, and a luxury builder home in Dripping Springs that is $200k upside down.
Sub2 vs. NPN: Why buying the note makes more sense than a Subject To deal when the borrower is 6+ months behind.
Texas Foreclosure Trends: A look at Roddy’s List and current numbers in Travis, Bexar, Dallas, and Harris counties.

Look, it might be 20 degrees outside, but these yields are keeping us warm. Whether you are looking to get a borrower back on track with a modification or taking a property back in a fast foreclosure state, the opportunity is right there in the data. You just have to know how to filter for it.

Make sure you grab the updated spreadsheet from the Basecamp repo (I’ll add the formulas so you don’t have to do the heavy lifting). If you are catching the replay, go back and watch the Saturday breakdown, and then join us live next time at NoteNightInAmerica.com.