If you're interested in note buying and/or note brokering, here is how it works
in a nutshell.
The kinds of notes that are the easiest to find and buy are privately- created.
When someone sells a property (it can be a house, apartment building, commercial
property, land or even a business with no real estate) and "holds"
or "takes back" some or all of the financing you can buy that note
and sell it to an investor. For example, someone may own a house on which they
have paid off their bank mortgage. They sell their house for $100,000, receive
a $20,000 down payment from the buyer and take back the $80,000 balance in the
form of a "seller-held mortage." The buyer makes payments over time
to the seller. In other words, the seller acts just like a bank.
One day the seller decides he needs more cash than the monthly payments are
giving him. He contacts you for a quote on his mortgage. Maybe it has a $60,000
balance. You get the details, check with the investor you've chosen (you'll
find the most reputable real investors (not brokers) in THE PAPER SOURCE
REGISTRY OF NOTE INVESTORS) and offer him something less than what the investor
will pay, say, $51,266.23. He sells the note to you for that amount and you
sell it to the investor for what he quoted you, say, $54,847.00 and pocket the
difference. And that's how note brokering works.
You don't need the cash to do this. The investors will wire the funds directly
to the title company handling the note sale. The title company then cuts you
a check for the difference.
Or, you can be the investor, keep the note and now you collect the monthly payments.
Your investment produces a nice double-digit yield on your money, and if the
payor ever defaults, you get a $100,000 house (perhaps worth even more than
that by then) for your $51,000 investment less the payments you already received.
What can go wrong? Lots of things. That's why you need the education we provide.
This is only one of dozens of examples of how note buying and note brokering
work. Sometimes you'll buy a "partial," which means you (or your investor)
get the next X number of payments, then the note reverts back to the note seller
and he collects the rest. Or sometimes you'll buy half of each monthly payment
and the note seller gets the other half each month. Or you'll buy all the payments
and he gets the balloon. Or you'll buy half the balloon and no payments...the
note buying combinations are fascinating and almost endless, but they all have
one thing in common: PROFITS!
THE PAPER SOURCE is now offering a free 7-lesson e-mail course on cash flow brokering / consulting / investing entitled "How To Get Started Profiting From Note Buying and Brokering," taught by PAPER SOURCE President & Editor W. J. Mencarow. (There is an optional homework package for $13.00, but you will benefit from the e-course without it.)
"W.J. Mencarow is an expert on real estate notes." -- Jane Bryant Quinn, The Nation's #1 Personal Finance Author, in NEWSWEEK (8/13/00)
If you're intrigued with discounted mortgages and other cash flows, either as an investor or as a potential broker, or if you already know about them but would like some new ideas or a refresher course, you're invited to register today.
"I have already learned more from your e-course than I did the books and tapes I bought from (guru's name deleted) -- and I haven't received lesson 4 yet!" -- George McKean trumpwisenospam@yahoocom
"I took the e-course by Paper Source in November, I followed that up with a home study course and began seeking clients in January. I closed my first note in February. I closed a total of 2 notes in Feb., 2 in March, 3 in April, 2 in May, & so far I'm scheduled for 2 in June. That's roughly $3300 PER DEAL." -- Notebroker911nospam@hotmailcom
"It's as good or better than most courses you'd pay good money for." -- John J. Merchant, J.D., EMS jmer1627nospam@aolcom
"Your e-course offers an incredible amount of information that has actually saved me a lot of money already." -- Wes Brewer WJLBrewernospam@yahoocom
'This is the most valuable and well-written ecourse I have yet to see."-- Bill Peeler bcpeelernospam@shawca .
"Your lessons give the impression you really want others to do well too."-- Jeff Gearhart Jefkaygearhartnospam@wmconnect.com
E-BOOKS
-- IMMEDIATE DOWNLOAD!
LONNIE SCRUGGS' DEALS ON WHEELS
info
LONNIE SCRUGGS' MAKING $$ WITH MOBILE HOMES
info
LORELEI'S LEGAL
LESSONS info
MAKE MONEY TRADING MORTGAGES
info
BUYING
NOTES & REAL ESTATE IN YOUR IRA info
TAKING
THE MYSTERY OUT OF MONEY info
Lonnie Scruggs' latest!
HOW
TO USE
YOUR IRA, 403b (TSA) OR PENSION PLAN
TO BUY REAL ESTATE, NOTES, JUDGMENTS...
AND OTHER THINGS
By John Merchant, J.D.
2008 Edition info
Now visit the largest note buying / cash flow site on the Web: www.PaperSourceOnline.com