Image

Foreclosure Auction + 12 Things You Can Do With A Note

Did you know that there are at least 12 things you can do with a note?  Read on!
Have you ever been to a foreclosure auction? Would you want to go just to learn more about how it works?  Would you ever consider bidding at one?
Here’s your chance to not only go but to get a briefing before it begins so you know exactly what’s happening.  We’ve made a special arrangement with Kurt DeMeire, the founder of County Records Research, to do just that at the Clark County (Las Vegas), NV trustee sale April 28.  You’re invited!  See http://countyrecordsresearch.com/calendarseminars.asp
What?  You won’t be in Las Vegas on April 28?  Here’s something that will change your mind:  www.PaperSourceSeminars.com
P.S.  When you sign up for the free trial at http://countyrecordsresearch.com/ be sure to enter the promo code papersource — instead of 5 days free access to the site, you’ll get 30 days free access!
See below for the article “12 Things You Can Do With A Promissory Note”
———————————————————————————————————

Lorelei Stevens is always looking to buy divorce liens. If a person’s “ex” owes them money on the family home, chances are they have a Divorce Lien. They don’t have to wait years for their “ex” to pay them – they can sell their divorce lien note for CASH NOW (usually tax-free)!

Lorelei Stevens is an expert concerning divorce lien sales, having 35 years experience. If you know someone who wants to sell their divorce lien, or if you want to learn more about Divorce Liens, please contact Lorelei personally!

Check out her companion website: www.divorceliens.com

Lorelei Stevens, President Wall Street Brokers, Inc. 9627 California Ave SW Seattle WA  98136 Phone:  206-448-1160 Email: lorelei.stevens@gmail.comwww.wallstreetbrokers.com www.divorceliens.com www.owelty.com www.marital-liens.com

———————————————————————————————————
12 Things You Can Do With A Promissory Note
by Lawrence (Larry) Tepper

Promissory Notes Solve Problems! 

Promissory notes are valuable finance tools. Unfortunately, they are underused because they are not understood. They have 12 or more important uses, including:

1.     Hold for investment income

2.     Hold in a tax-free or tax-deferred IRA account for income

3.     Sell for cash

4.     Exchange for real estate

5.     Use as a down payment on real estate

6.     Use a security for a loan

7.     Use to repay a debt

8.     Use to make a gift

9.     Use to reduce taxable income

10.  Used to divide assets in a business or domestic settlement

11.  Each of the notes’ payments can be sold—partially or in total

12.  A note’ balloon balance can be sold—partially of in total


???????Depending on the note’s characteristics and your goals, many, many possibilities exist 
to improve your financial picture. 

My promissory note knowledge has been gained over 35 + years of actual experience–not textbook theory.

Please review my website for more information and a personal resume.

Contact me to discuss any type of promissory note matter—at no charge.

Lawrence (Larry) Tepper

Intoxicating Assets: How to Be the Bank, Invest in Real Estate without Tenants, and Why Seconds Come First

by Sandor Lau

See Sandor live at The Paper Source Symposium, Las Vegas, April 2016:   www.PaperSourceSeminars.com

Imagine an investment in a single-family home where you put down only a fraction of the property’s value, say 3.5% like an FHA loan. The home has been occupied without vacancy for the last 10 years. The occupants are internally motivated to mow the lawn, fix the roof, and unclog the sink on their own dime.

You can profit from this investment through value appreciation and principal paydown, like any other piece of real estate. This way, you can do so without ever dealing with tenants, toilets, or termites. Because you’re not the landlord, you’re the loanlord. You’re the bank. And they’re not tenants, they’re homeowners.

Real Estate without Tenants

You can stop imagining now because it’s real. Here’s my business plan in one sentence: Buy nonperforming second loans on residential properties where the borrowers are current on their first mortgages.

You are dealing with borrowers who have been investing emotional equity in their homes for a decade or more. They have a lot to gain by cooperating with you, and a lot to lose if they won’t. You have only a little to lose, and an incredible amount to gain.

Every day the borrowers are taking care of the property and paying the first mortgage, you win. The property is overwhelmingly likely to go up in value, and the homeowners are paying down the balance of the first mortgage, increasing your equity position. They are also overwhelmingly likely to be paying the taxes and insurance.

Asymmetric Risk

Our culture teaches us that what is common and average is good and right. What is unusual or extraordinary is bad and wrong. Just ask a guy with a weird name. One of the worst myths perpetuated by the mediocracy is that risk equals reward. In the stock market, for you to win, someone else has to lose. There is better way.

I believe in abundance. I don’t want to enlarge my slice of a finite pie by taking parts of other people’s slices. Besides, I don’t even like pie much. I like dark chocolate. With sea salt and almonds. I want to make a bigger square of the chocolate bar for myself by making a bigger chocolate bar for everyone.

The average American watches four hours of television a day, has $15,000 in credit card debt without a plan to pay it back, and reads at an eighth-grade level. Do you want to be average?

In the second notes investing world, reward outstrips risk many times over. As my mentor Gordon puts it, investing in junior liens is the real estate equivalent of stock options.

Case Study: Joe and Jane

For round numbers, imagine a home worth $100,000 in the Atlanta suburbs. Joe and Jane American homeowner bought the house for that amount in 2005. They put no money down and got an 80/20 piggyback loan with a first mortgage of $80,000 and a second mortgage of $20,000. The market crashed. Joe lost his job.

Jane kept her job and they were able to keep current on the first mortgage or get a modification they could afford. The bank who owned the second loan sent them a letter when they stopped paying, “Dear Joe and Jane, we would really prefer you to pay your second loan. Pretty please.” Joe and Jane had bigger problems to worry about.

Now, real estate has recovered, or is at least recovering. Joe is working again. The house is once again worth what they paid for it and is going up. Let’s say they have paid down the first mortgage to $75,000.

The bank wrote off the second loan, and sold it to you for $3,500. Now you have the right to collect the full $20,000 they owe, and back interest and fees of another $5,000, or $25,000 total.

The house is worth $100,000, and you could foreclose, and pay off the $75,000 first and keep the rest for yourself. But foreclosure is expensive, and you’d have to pay a realtor to sell it. What I like to do is talk with the borrower and find an affordable way for them to keep their home.

Maybe they can pay $2,000 down and $250 a month, then refinance, pay it off, or sell the house when the note comes to maturity in three years. Now I’ve got a valuable asset, a $20,000 performing note. I can borrow against that note and pay 9% interest to people who want to invest passively and don’t want the risk and fluctuations of the stock market.

Maybe Bank of Mom and Dad can help Joe and Jane out or maybe they have money in a retirement account. If they owed you a total of $30,000, but could pay you $20,000 today, would you take it? I would. Happy birthday Joe and Jane, you just won $10,000 free! Enjoy a little bigger slice of pie.

If the borrowers won’t communicate or can’t or won’t pay, you absolutely have the right to foreclose. In Georgia, you could foreclose with around $2,000 in a few months.

You can also just sit and wait while the property appreciates and the homeowners pay down the first mortgage. Want more equity? Patience, Grasshopper. If the Atlanta metro area is going up 5% annually, your $100,000 house should be worth $105,000 next year whether you have invested $3,500 or $100,000.  Leverage cuts both ways, but in this business, it cuts only a little way down, but way, way up.

If you were totally wrong and this note is a complete write off, you only lost $3,500, a little more than you would pay for a 2001 Geo Metro. If you are right you’re probably earning over 100% return. Do you see why my heart is on fire for this business?

Sandor Lau is the author of Intoxicating Assets: How to Be the Bank, Invest in Real Estate without Tenants, and Why Seconds Come First, due for publication 2016.  He’s the co-founder and Chief Inspiration Officer of Stewardship Capital which specializes in rehabbing defaulted second mortgages.

See Sandor live at The Paper Source Symposium, Las Vegas, April 2016. For information:   www.PaperSourceSeminars.com

Watch his videos on note investing at StewardshipCapital.com

Don’t forget the free Paper Source teleseminar TOMORROW, THURSDAY Feb. 18. with Martin Granoff. We’ll talk about how to buy or broker “under the radar,” non-real estate cash flows such as notes on businesses, contest and casino winnings, lawsuit settlements, disability income payments and other types of outside the box future cash flows. We’ll take your questions live!

The teleseminar starts TOMORROW, Thursday, Feb. 18, at:
10 a.m. Pacific Time;
11 a.m. Mountain;
12 noon Central;
1:00 p.m. Eastern

Tomorrow, Thursday, just before it starts in your time zone, call 605-562-3140. When prompted, enter the code 794728. This will NOT work on VOIP phones such as Magic Jack.

Martin will teach at the Paper Source Note Symposium April 28-30 in Las Vegas. See the video, get info and register atwww.PaperSourceSeminars.com Use the coupon code newyeardiscount and save $50.00! But hurry — that expires soon.

Mark Your Calendar For The Note Teleseminar This Thursday

Mark your calendar and join Martin Granoff and me for a free Paper Source teleseminar this Thursday, Feb. 18. We’ll talk about how to buy or broker “under the radar,” non-real estate cash flows such as notes on businesses, contest and casino winnings, lawsuit settlements, disability income payments and other types of outside the box future cash flows. We’ll take your questions live!

The teleseminar starts THIS Thursday, Feb. 18, at:
10 a.m. Pacific Time;
11 a.m. Mountain;
12 noon Central;
1:00 p.m. Eastern

On Thursday, just before it starts in your time zone, call 605-562-3140. When prompted, enter the code 794728. This will NOT work on VOIP phones such as Magic Jack.

Martin will teach at the Paper Source Note Symposium April 28-30 in Las Vegas. See the video, get info and register at www.PaperSourceSeminars.com Use the coupon code newyeardiscount and save $50.00! But hurry — that expires soon.

Join Us At A Foreclosure Auction Before The Note Symposium!

Kurt DeMeire will walk you through a live foreclosure auction in Las Vegas on Thursday morning, April 28, before the start of The Paper Source Note Symposium.  He is the founder of County Records Research, which for 34 years has been a vehicle for investors to identify and purchase non-performing notes and foreclosure properties far below market value.  Kurt will also teach at the Note Symposium.  For more information go to www.PaperSourceSeminars.com or call 800-542-2270.

 

Image