To generate income quickly, you systematically broker note deals and then invest at high yields


timheadshotTim Fitzgerald’s
Cash Flow Business Tip of the Week


high-yield-note-investingTo generate income quickly, what you want to do is systematically broker note deals and amass referral fees that way (you’re looking at anywhere from $2,000- $10,000 per transaction depending upon the specifics). Then, you invest just a portion of the cash you’ve generated into buying a note for your own account once in a while and then restructure the payments (on the ones that you can) so that you get paid off early which boosts your rate of return substantially– to 35%, even 70% or more (YES, this can and is being done by knowledgeable note practitioners all the time). That’s just one of many strategies to building a six figure income through note investing. I’m over-simplifying this here, as it usually takes me 30-45 minutes to explain and I’m giving it to you in just a couple of sentences, but that’s the basic strategy in a super-small sized nutshell. And YOU can easily learn to do this no matter WHAT your background.

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I’m going to give you an example of this type of strategy in practice. And, you’re going to want to do this with every mortgage note that you buy for yourself. Granted, you’re not going to buy every note that you see (you’ll broker the bulk of them)… you cherry-pick the ones you want to keep (these will be the notes with lots of equity and long payment histories) and if you want to learn more, we’ll show you (through our educational arm) what to look for and how to do that. Now, say you buy a note at a discount (as you do with every note to begin with) and then let’s say, for starters, that you’re earning 16% on that note. Not bad, right?? That’s a pretty good return already.

OK, so once you are collecting the payments and acting as the bank, you go to the borrower and make this offer to him (or her). It’s truly a magnanimous offer and I find that every one of these borrowers will bend over backwards to take you up on this if they can and I can virtually guarantee you that no one has ever made them (or you, for that matter) an offer like this in their lifetime. Here it is:

You will get him paid off early (very early) and what’s more, you will cut his interest payments substantially if he does just one thing and that is increase his monthly payments by “x” (a number to be determined). This is just a win-win-win situation all around because the note seller got rid of a note he did not want, and now you’re giving the borrower a fantastic deal — the best deal anyone has ever, ever, offered him (he’ll end up saving thousands and thousands of dollars just by increasing his payments a little if he can swing it).

Now, since this is such a “Win-win”, I can sleep with this at night and it certainly feels great to be able to help people out.

But who am I most concerned about? Me, myself and I, of course– yours truly. And so, with “me” in mind, let’s take a look at what happens when I do just a little restructuring like this– my rate of return skyrockets. Let’s say my ROI shoots up to 35% (and to be sure, this is very achievable and is done all the time– this is no “pie in the sky” theory- it’s very real, experienced note practitioners do it on a regular basis and this is, in fact, what happens when I buy a note at a discount to begin with and then restructure the payments to get paid off early).

Now, let’s just say you do this 1 to 5 times a year (I’m just trying to put forth a realistic range here that’s very attainable) when you’re cherry picking some of these loans the come across your desk (what I like to call the “gold nuggets” with a lot of equity and exceptional payment history) to keep for yourself. Look at what can happen and ingrain these concepts into your brain– don’t concern yourself with the actual numbers so much but just get the CONCEPT)–

$1,000 per year invested at 25% for 25 years = $5,176,503.69 (that’s over 5 million bucks and 25 percent is a very attainable return in this business)

Now, what if you did something like this more than once per year, or are able to invest, say, $5,000 per year through note brokerage fees just for being a finder– remember, you’re generating cash like this for which to invest by using other people’s money to begin with– NOT your own, that’s the beauty of this business– and let’s use 15 years as an arbitrary time frame (you can greatly shorten this time frame and you’ll still make out very well– just do the math on a recurring investment calculator and plug in your own numbers and scenarios):

$5,000 per year invested at 35% for 15 years = $1,273,692.41 (that’s still way over a cool million bucks over a shorter time period and all you did was up your investment a little and restructured the payments a bit differently)

I would like you to become acutely aware that as you broker notes to amass capital with which to invest, you are generating cash using none or your own money because of the unlimited funding available to you in the cash flow business. Then, by implementing strategies such as the above, you can accumulate a very large retirement nest egg by building a portfolio in low risk high reward notes. Real estate notes are hands down my investment of choice all day, every day, each and every year. For me, the returns can’t be equaled.

Personally, I’ve shunned the stock market altogether for the foreseeable future. The performance has been abysmal there (the S&P and Dow are coming off their worst years since 2008– pathetic).

By investing in notes backed by good real estate, setting up these regular payments that keep flowing into your bank account and just doing this over and over and over again, you’ll catch up to where you need to be financially much faster and greatly compact the time frame necessary to amass a formidable retirement nest egg even if you happen to be starting late in life with your investment plan.

I would go so far as to say that the note business has helped me to enjoy life to the fullest. I want that for you, too.

As an aside, our Master Cash Flow Specialists are well-trained in all of these concepts and they possess an excellent working knowledge of how to execute these types of deals (and you certainly don’t need to be good at math to do all of this). Having been at this for nearly twenty years at this point, we’ve taught people from all walks of life. You’ll find that when you actually start working this system, you can accumulate a lot of capital within just a few short years. Thousands are already employing these strategies successfully and there’s no reason you can’t, too.

So, to summarize, I would advise you to start doing this yesterday if you’re not doing it already:

1. Start amassing referral fees from brokering notes. You can generate a substantial income doing this part time using other people’s money to fund the deals. All you do is act as a finder and put buyer and seller together. Simple.

2. Every once in a while (to begin with, at least once or twice per year) keep one of these notes for yourself-- you can use other people’s (partners’) money to help you do this and also engineer things a bit so that you keep a portion of the monthly payments for yourself; there are a ton of different ways to accomplish this and then you’ll want to use the techniques above to restructure the payments so that you get paid off early in order to skyrocket your ROI.

3. You’ll want to keep the notes you buy in a retirement account such as a Roth IRA (there are huge tax advantages here– make sure you get this account properly set up because what you’ll want to do is start living off the interest one day soon).

By taking the time to read this, I hope you can see (as long as you grasp the CONCEPTS) that you’ve just received some multi-million dollar insights. But you need to put the plan into action now because the timing is optimal. There are more seller take-back mortgages out there at better terms than at any time in the past decade held by people who did NOT want to take back financing to begin with. This is a huge opportunity and this is where your market is– you swoop in and get them the cash they wanted (or needed) in the first place by selling off their note and then you execute the plan I outlined above.


Tune in to NoteInvestors.com for Tim’s regular posts and columns on notes, investing, and personal wealth building. You can email him here.


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