In this section from The 2019 NoteBuyer’s Academy, I’ll show you the basic transaction which provides the foundation for learning the discounted mortgage process. We’ll refer back to this example repeatedly throughout the training. Once you have a good understanding of how the basic process works, you’ll be ready to start applying some of the more creative techniques that will allow you to increase your yield even more. If you aren’t yet familiar with using a financial calculator, don’t worry about the calculations, just concentrate on the process. We’ll cover the actual calculations in later training.
The key takeaway to pay attention is that there are two profit centers in a typical note deal: 1) the discount and 2) the interest paid by the borrower each month.
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