Welcome to the wonderful world of note buying—the best kept secret in real estate investing.
Note buying is perfect for the person who wants:
- To make quick, lump sums of cash without using their own cash or credit
- To quickly and safely build a substantial retirement income
- To invest money in a safe, high-yielding vehicle
- To invest in real estate without the hassles of tenants, trash and toilets
- To have the flexibility of buying and selling properties without bank financing.
Once you understand how the time value of money works hand in hand with discounted notes, you’ll soon discover an infinite number of ways to use notes to increase your profits and your ability to put deals together. All of these techniques can be broken down into four basic categories:
1. Buying and selling other people’s seller financed notes
- Perfect for the person who wants to create large sums of cash very quickly, without any cash or credit of their own to start with!
2. Buying notes to hold for your own investment
- The ultimate passive income!
- Perfect for the person who has money to invest
- A great place to invest the profits you make from buying and selling other people’s notes
3. Creating notes when you are buying or selling properties
- An absolute must when you want to buy or sell properties without bank financing!
- Perfect for creating notes to hold or sell for quick cash
4. Purchasing defaulted notes
- Restructure the note to create a high-yielding investment
- Use the note as a backdoor to acquiring the property at a steep discount.
- Re-sell the note for quick cash
In this training, we’ll focus on the first two methods, buying and selling other people’s notes and buying notes to hold for your own investment.
Please reference my other training on creating seller-financed notes and buying defaulted notes. As you become proficient in the various areas of note buying, you’ll quickly realize the tremendous power of combining the various techniques to totally maximize your profits.
Why Note Buying is the Best Kept Secret in Real Estate
Without a doubt, note buying is one of the fastest, safest, easiest ways to make quick cash with real estate. Whether you want to do notes on a part-time basis or build a note buying business, you’re going to love the many benefits that note buying offers:
- No Cash or Credit Needed. It is much easier to buy and sell notes without your own cash or credit than it is to buy and sell real estate without cash or credit.
- Safety. Note buying defies the old saying that the riskier the investment, the higher
the interest rate. With notes, you can buy with more safety and higher yields than almost any other financial investment.
- High yields. With note buying, you can earn yields that are truly out of this world.
In fact, my favorite yield or interest rate on an investment is “Error” on the financial calculator, which means the rate of return is too high to compute!
- Liquidity. Unlike real estate, notes can be sold quickly and easily. Even if you have an entire portfolio of notes, you can sell them for cash whenever you want.
- Collateral. Like real estate, notes can be used for collateral when you want to borrow money.
- Potential. Just like real estate, notes can “be rehabbed” or modified to increase their value.
Cash Flow. Unlike real estate and many other investments, by their very nature, notes provide you with a positive cash flow.
- Easy Management. Notes provide you with all of the security of real estate, without
any of the headaches of owning the property. You’ll never have to paint a note or
unclog the toilet of a note.
- Net Worth. Investing in notes allows you to quickly increase your net worth.
Although you purchase the notes at a discount, you show them at full value as an asset on your balance sheet.
- Exchange. A little known fact about notes is that you can trade them at full face value for real estate. Imagine buying a note at a terrific discount and then trading that note at full face value for a piece of real estate.
- Minimal Setup Costs. A person can start a note business with as little as a telephone and Internet connection.
- Easy. Notes are easy to acquire, easy to own, and easy to turn into a profit.
Whatever your investment objectives are, you’re going to love the power and flexibility that note buying affords you!
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