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moveright

Calling all cars - I need backup

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Not sure what you did with this deal...

 

But, here's a solution for the future...

to make a bigger pile of money...

 

The best price was $200 -225K

 

Once you have got your best price..

 

Then switch to best terms...

 

I like to do something called some now, some later..

Something I teach to my students.. that I started

doing early on almost years ago...

 

You next tell them you could get them the 200k... if

You could do some of it now... and some of later...

 

So they agree to get 100k now.. and 100k later... (say 5 years)

 

Now you have reduced your problem to a 100k problem..

 

Next you market by way of owner financing to the

retail market....

 

for the 300k...

 

And market it as a fixer upper... over 200k below market...

 

Do you think your phone will ring... You betcha...

 

Some one comes along and gives you... 15 - 30k down...

 

At 15k... (your pile of cash.. as you say)

 

You will still be owed 285k (payments around $2300/month)

but, you still have a 100k problem.

 

You put your note up as collateral... And Who wouldn't want

to be part of deal with a 30% LTV and 30% cash on cash return....

 

They receive the payments... and then you work to get the

folks to refi.... over the next few years... (say 3)

 

In 3 years the picture will look like this...

 

You will only owe... around $55,000 of the original 100k...

You will owe... 100k still which is due in 3 more years... (think discount,

or substitution of collateral)

 

You will be owed... $278,000...

 

So, you would go for an early payoff discount of the remaining 100k..

You offer them 75k... to be done...

 

So, when the smoke clears... it looks likes this...

 

55k owed to original note guy..

75k remaining payoff...

 

130k total.....

 

And you get paid off... $278k.... on a refi...

 

You make 148k on the back end of deal...

that you were going to flip... and be done...

 

That's over 10 times the profit... when you also

count the initial down payment.... of at least 15k...

 

You see...

 

I decided when I started this business... to learn finance....

and real estate notes...

 

I had some really "really" good

mentors...

 

I see too many folks starting out in this business...

That just want a job... (albiet a high paying one, but,

nonetheless... a "job")

 

To them... I would simply say....

 

"go be a realtor"..

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