"Marcus, I have a $50,000 note on a property worth $100,000. I have it under contract for $30,000. Give me $35,000. You get a secured note at a massive discount, and I keep $5,000 as a 'finder’s fee'."
He found a private investor, Mrs. Gable, who had lent $50,000 to a fix-and-flip artist three years ago. The flipper had vanished, the house was rotting, and Mrs. Gable was tired of the taxes. She held a "performing note" that had gone "non-performing."
Buying notes (specifically real estate promissory notes) with no money down is a classic "creative finance" strategy. It relies on finding a problem to solve rather than just a price to pay.
He secured an option to buy her note for $30,000 (a discount, since it was non-performing). He gave her $10—literally a ten-dollar bill—as "earnest money" to make the contract legal.
Marcus saw the math. He paid the $30,000 directly to Mrs. Gable. She was thrilled to be rid of the stress. Marcus got a high-yield asset for 60 cents on the dollar.
Elias drafted a simple agreement. He didn't buy the note with cash. Instead, he used a or Wholesale strategy:
"I can't give you $50,000 today," Elias said honestly. "But I can give you a " The Structure
"Marcus, I have a $50,000 note on a property worth $100,000. I have it under contract for $30,000. Give me $35,000. You get a secured note at a massive discount, and I keep $5,000 as a 'finder’s fee'."
He found a private investor, Mrs. Gable, who had lent $50,000 to a fix-and-flip artist three years ago. The flipper had vanished, the house was rotting, and Mrs. Gable was tired of the taxes. She held a "performing note" that had gone "non-performing."
Buying notes (specifically real estate promissory notes) with no money down is a classic "creative finance" strategy. It relies on finding a problem to solve rather than just a price to pay.
He secured an option to buy her note for $30,000 (a discount, since it was non-performing). He gave her $10—literally a ten-dollar bill—as "earnest money" to make the contract legal.
Marcus saw the math. He paid the $30,000 directly to Mrs. Gable. She was thrilled to be rid of the stress. Marcus got a high-yield asset for 60 cents on the dollar.
Elias drafted a simple agreement. He didn't buy the note with cash. Instead, he used a or Wholesale strategy:
"I can't give you $50,000 today," Elias said honestly. "But I can give you a " The Structure
Non-commercial use for P3D Academic v4.1.7.22841 through v6.0.34.31011 (HF4)*
Requires TacPack for P3D Personal (x64).
Please see system requirements prior to purchase.
Commercial use for P3D Pro v4.1.7.22841 through v6.0.34.31011 (HF4)*
Requires TacPack for P3D Pro (x64).
Superbug is included with all commercial TacPack licenses.