Good year for Texas hedging

we have real estate to thank

We should chat

kept this short so I could go back to working on this fun new sourcing tool, but if you enjoyed this give me a follow/like/RT!

This is fun little example of my process

1. see something weird, but one-off
2. try to find other things like it; making it not a one-off
3. systematically find other things like it using AI
4. lap up that alpha

I ran through the spreadsheet and found a couple things I can chase this week

It decided to scrape the text from the articles and do some keyword searching

I kinda thought AI would use something clever like...use AI, but I let it do its thing

Took some tweaking, but in an hour or so I had the below

Pretty cool and stupid fast

Maybe I can add logic to this so that I don't have to read all these articles and headlines

"suppose we are looking for distressed business opportunities, can you write something to screen these news articles to just things that are interesting?"

I hopped in the prompt and basically wrote: "using functional python, build a system that will programmatically find local news articles and populate a spreadsheet with them"

I helped it think through a few things, like choice of API etc

but within 20 mins I had a spreadsheet

THE IDEA

I want a system that will scan local news articles every day and highlight things that could be interesting opportunities

This was seriously the extent to which I had spec'd the project out

Cursor Built to make you extraordinarily productive, Cursor is the best way to code with AI.

Yesterday, I saw some tweets about Cursor's new Composer Agent

I'm a huge fan of their IDE, so I figured I would test out their agent offering on this half baked sourcing idea

www.cursor.com

I write code infrequently these days

My devs are great and know their shit

But I didn't want to distract them with this funky project

Frankly, I wasn't even sure what I wanted to build

SOURCING FOR FREAKS (or how to scale being weird)

First a story:

Last weekend, I heard through the grapevine a local business that owns their real estate is in trouble

I emailed their bank; we might be doing a deal

It got me thinking, can I scale this? 👇🧵

wen Hunter gift guide

smoking meats while my stalker looks on

Just messaged you (I think)

Thanks Russell 🥰

Right, I kept the math simple for easy internet consumption

Great question, I think we will over time move into the weirder stuff, but I like to stick close to areas where I know I have edge

When trying something new I like to have a lot of room to pay my tuition!

Thanks for reading!

As always if you like shitposts and weird credit investing smash that follow button!

This is another deal that we've done out of our new fund vehicle

If you want to get involved shoot me a DM or learn more at the link below

loans.constlending.com/credit-fund

- It's structural; personal injury attorney are NOT collections attorneys. they don't get compensated for the collections work so we can effectively provide a service for both the attorney and their client

- self-insured and free & clear go hand-in-hand; if a CRE owner doesn't have insurance they probably don't have a mortgage which means we will be in at a killer LTV and in first position

- we acquired our lien from one of the biggest PI firms in our market and will get the look on future situations

This risk reward is as good or better than what I get buying NPLs, but here are a few things that make it even more interesting

- we estimate 15% of CRE in our markets is free and clear, and with exploding insurance costs more of these will choose to self-insure

Here's why I did this deal and I think we're positioned for more:

- We paid 250k for a 300k judgment or 83 cents on the dollar

- the collateral is worth over 1mm which puts us at 30 LTV

- We bring a foreclosure suit and get paid off within 12 months for a 20% unlevered return

And they would be working that action for free since their fee is already set

Most firms like these are volume businesses with big marketing spend

They are not collection operations

Typically they will simply leave the lien and hope that it gets paid off at some point