Note brokers who are unfamiliar with commercial real estate notes are missing a great profit opportunity. It’s easy to assess a note on a home, but if someone calls you with a commercial note, you may not know how to price it, whom to sell it to and what kind of documents are required. Continue reading “Commercial Real Estate Notes”
This post will show you how to figure commissions using a financial calculator when buying and selling discounted notes.
Sally Seller needs cash to buy a new Jaguar to impress a potential boyfriend. Her only asset is a $100,000 note she took back when she sold her home 5 years ago. You want to broker the note to an investor. The Jaguar costs $80,000. Can you help Sally and still make a commission? We must first calculate the value of the note she is selling, then make her a purchase offer, and then calculate the price the investor will pay for the note. In each case, we need to know the yield or interest rate at which we can buy and then sell the note. You think you can buy Sally’s note for a 10.5% yield and sell it to an investor to yield them 9%. Continue reading “Commission in Discounted Note Business”
I am in contact with most of the successful note brokers in the country and it is clear that you, our readers, have a knowledge of financing, cash flows and the time value of money that is just too valuable not to use in real estate investing as well as notes.
Consider how you, as a reader and cash flow expert, can find and fund real estate bargains that students of the infomercial gurus don’t even understand: Continue reading “How To Use Your Note Broker Skills in Real Estate Investing”
I recently received a call from a note holder who wanted to sell a cash flow secured by golf course water pumps. I have been in the note business going on 30 years, and this was a first. I took some basic information and told him I would get back to him shortly. Continue reading “How the Note Business Has Changed in the Last Few Years”
In the last post, I defined a discounted mortgage for you. Let’s briefly review the scenario to refresh your memory. Orvel sells his property to Betsy. Orvel takes back a mortgage for $50,000.00. Orvel then sells his $50,000.00 mortgage to Pete, a third party investor, for $40,000.00. This scenario has all the ingredients of a discounted mortgage; a transaction between private parties, the security for the investment is real estate, and Continue reading “How To Make Money Flipping Mortgages by Acting As a Finder”
In the last post, I listed for you the four important steps to success in the discounted mortgage, note and cash flow business. They are: (1) start part time, (2) think long term, (3) generate leads and (4) flip, do not buy mortgages. I would like to spend some time on the importance of flipping discounted mortgages.
First, you need to understand that there should be three steps in everyone’s financial/business plan: Continue reading “Success in the Discounted Mortgage, Note and Cash Flow Business- Part Two”
The discounted mortgage, note and cash flow business is one of the easiest, fastest and safest ways for you to generate additional income. Many people who fail at this wonderful business do so because they miss the “forest for the trees”. If you will follow the simple guidelines below, your chances of success will improve immeasurably. Continue reading “Small Steps to Success in the Discounted Mortgage, Note and Cash Flow Business”
The business of flipping discounted notes, mortgages and cash flows requires some easily acquired knowledge and skills but requires little or no cash—and none of the hassles associated with owning real property. That is one of the many reasons the discounted cash flow business requires serious consideration.
The best time to be in the discounted cash flow business is Continue reading “Flipping Discounted Notes, Mortgages and Cash Flows- an Ideal Home Based Business”