Re: Mortgage Note Investing

How many of your real estate industry friends have ever done a “note” deal?

When I hear about note opportunities, it is music to my ears.

I’ve been waiting all week to use that line. I couldn’t resist.

Mortgage notes are everywhere around you. Most people think that only banks create mortgages. The reality is, a lot of wealthy people own “paper” on all types of property.

When wealthy people want to sell, well, just about anything, they know that they have a lot of options. Creating paper is simply one of the options.

Especially these days. The interest rates are so low at banks, if you have a chance to create “paper” (industry slang for a mortgage on a property) you can often get a much higher rate of return vs. a savings account. If they don’t need more cash, owner financing can be a great option.

But it doesn’t stop at houses.

Friends of mine have bought and sold cars, boats, land, apartment buildings, and even businesses and small companies – all using a wide variety of “owner financing.”

This creative process of owner financing will open your eyes to a whole new world of opportunity.

Our guest speaker this month at WREIA is a real go-getter. He is somebody who took a note class years ago and actually walked out the door and implemented what he had just learned.

You will be shocked to learn just how much of an opportunity there is in the note market. Some of his recent stories are nothing short of impressive.

It’s not just “mom and pop” that want to buy or sell notes. Banks, mortgage companies, hedge funds and private persons all are out here in the note markets – buying and selling every day. It’s a huge market.

Why are there so many people out here? Because it can be terrifically lucrative.

But – be aware. There are plenty of chances to make a mistake and you can screw up in this market. BIG time.

When you are out and about this weekend, maybe hanging out with friends or family – ask around and see if anyone has ever bought or sold something by creating a note for it.

Lots of us have done it. We are talking about the purchase of anything that allowed a buyer to pay over time versus paying all cash right now. Once you find someone, ask how the process worked for them.

Most people are surprised by how positive (and easy) the experience can be.

If you have been beating your head against a wall trying to make a deal work – having some additional knowledge could help you figure out a solution.

“It’s a pretty strong reflection of the housing market condition,” Nino Sitchinava, principal economist at Houzz, told CNBC. “The home renovation market has mostly recovered, and is in line with the prerecession peak.”

Still, those 55 and older continue to outspend millennials, nearly three times as much. Overall, homeowners who renovated last year spent an average of $60,400, about in line with the $59,800 on average in 2015, showed the survey from Houzz, an online platform for home renovation and design.

More at http://www.cnbc.com/2017/05/04/millennials-and-first-time-homebuyers-spend-lots-more-on-renovations-survey.html

Let’s agree that the last two weeks of the year not much work gets done unless you are working in retail.

Most of us are out shopping, visiting with family & friends or even headed out of town for a quick vacation.

Let’s say you were handed a check for $75,000.00 on December 15th, 2017.

What would you do?

Would you take a nice vacation or donate to your favorite charity?

Pay down some debt, or put down a deposit on a rental property?

Maybe all of the above?

Whatever your plans, an extra 75k will come in handy – especially at the end of the year.

Let me let you in on a little secret. A 75k check doesn’t have to exist in your imagination. It’s very possible and can be a reality in our business.

Real estate is one of the few professions that will allow you to make “chunks” of money. Sometimes those chunks can be life changing.

Very few people can work overtime between now and the end of the year and have it add up to an extra 75k. Not without sacrificing time with family and friends and maybe even killing themselves in the process.

But in our business, with a little bit of extra work, 75k is very much within your grasp.

No matter where you are in your career, you can probably make a few tweaks here and there and have them add up to some nice extra checks by the end of the year.

It doesn’t have to stop at 75k either. You are allowed to go much higher. Or lower I suppose. Choose an amount that would make a difference to you.

After nearly two decades in this business I know one thing – WE ALL HAVE OUR NUMBER.

Write your number down and bring it with you to the May WREIA meeting tomorrow night.  Then listen for the tactics that you can put into action.

Tomorrow at our May WREIA meeting in Bethesda we are going to go over tactics that you can act upon immediately so you can “bank some extra coin” by the end of the year.

Excited?

I am SUPER excited for tomorrow night.

I hope you join us tomorrow night (May 8th) at WREIA. We will open the doors for you at 6:30.

Bring your friends, your wholesale deals, and join us for some networking, education and expand your belief that other people are out here in the DC area making money in real estate.

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Interested in a seat or a WREIA Membership?

Save a few dollars and reserve your seat early.

Tremendous Savings and Additional
“Members Only” Perks for WREIA Members

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FOCUS and make 2017 a great year for your business!

Let me know how I can help you,

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. If you missed it you can find more details and a video about the May WREIA meeting inside the Mickey Mouse article posted here.