How to create a sellers market with 3 magic words. Period.

Here is it! Enjoy!

Are you tired of waiting for a buyer to come around???

I was talking to a Realtor friend and neighbor of mine named Don and I have to say he certainly sounds like a Realtor who knows what he’s doing. It seems that so many Real Estate Agents –like he had mentioned- are flooding the market and if some are making more of their share, than others are dropping out. I’m sure as you know many have dropped out of the business all together and I have seen that happen in my industry as well. I have seen both investors and institutional funding sources fall out of the game all because they didn’t have practices that were diligent enough to keep them afloat in this downward market cycle. As values decline you need good credit scores and good sales prices and down payments to offset the declining values.

Lately I have been working on making good quality Youtube videos to find promissory notes for sale. So many people don’t know how to create a GOOD promissory note that they can actually sell. I have also stumbled upon a new way of presenting the information.

Not only will seller financing sell your property quick, but you’ll most likely start a bidding war in this buyers market because you create a sellers market from all the people who weren’t pre-qualified by the banks. So few people are seller financing and so when somebody DOES- all the banks “rejects” come on buy and make a bid and the best bid is based on asking price + down payment and credit score. And so once the “best note requirements are met which are:
-10% down
-650+ by people agreeing to a
-9% interest rate
-30 year amortization
- and 7 year balloon payment of the remaining balance,
…Then the remaining bidders bid up the price and/or down payment depending on the sellers preference. And the higher the price, down payment and credit score, the more cash they can get from the sale of their promissory note.

But those are NOT my minimum requirements, The lowest terms are 5% down payment, 600 credit, anything less is almost impossible to sell.

That is- IF they decide to sell. Some like the passive income and I show them how to do it too in hopes that if they ever decide to sell, they’ll come to me for pricing.

If you ever have any questions about creating a good promissory note, I’m here to help. I’ve been buying them since 2007 and I work with investors and funding sources that have been buying them for decades, so if I can’t answer your question, I can get an answer.

Have a great day!

Regards,
Andrew Distad
Investor
Cash 4 Promissory Notes

http://www.Cash4PromissoryNotes.com

Andrew@Cash4PromissoryNotes.com
(760)-296-1573 Fax + Office Phone
(503)-990-3044 Cell Phone
P.O. Box 52 La Quinta, CA 92247

Private/Hard Money Lenders for a purchase?

Anyone out there know of any Private/Hard Money Lenders who are lending on the appraised value of the home in Northern California for a purchase?
If there is enough equity in the property, do you need to bring in much to close? Any rehab loans-100% of the after rehab value? I know there are lenders out there but lending changes everyday. We have great rental history, 18 years on job with good income. How about a lease to own with good terms. Area looking is Northern ca, Antioch, Oakley, Brentwood, Discovery Bay. Just need some to give us a break and we are willing to pay the points and fees to get into a home. Please help us!

Angela
Home Buyer
Antioch, CA

Dear Angela,

If you find someone who is discounting their home, ask them what they were originally selling it for, and tell them you’ll give them their asking price without discounting the home (or at least not that much) but only on the condition that they will seller finance.

If they object- ask why. When they tell you why…

If they say: “But we don’t own it free and clear” -That doesn’t matter. They can create an All Inclusive Trust Deed (A.I.T.D.) or what is also known as a “wrap”. It’s like a circle within a circle. And if they say “but there is a due on sale clause” then they can deed the property into a trust named the same as their last name and then their trust can sell you the property and the bank would have a hard time having the legal grounds to call the loan. Besides- the banks have bigger fish to fry- if it isn’t broken why fix it? Right? I would have a hard time believing that they would call a loan that’s fine when they have so many foreclosures going on.

And if the property sellers say: “But we want cash, we don’t want to wait for our money”

That’s where I come in: I am an investor that buys these kind of loans.

And I show property sellers how to sell their house faster by discounting their well created promissory note instead of discounting the property.

If they have any questions they can call me 9-5 m-f PST
Regards,
Andrew Distad
(760)-296-1573

So What’s It Going To Be? 7% or 8000%?

If you had a 113,500 promissory note at 7% for 30 years from a 120,000 property sale and the payer with a 550 credit score only put 6500 down and your balance was 112,000 but you had opportunities to turn that kind of money over and make a 300% ROI or even a 8000% ROI then why would you sit on a note at 7%?

Even if your note was 7% but you told someone about an investment opportunity that you had where you bought a parcel for 65,000 and sold it for 5,500,000? (putting in that much and getting that much back is a 8000% yeild)

That’s what happened to me today. I came across this guy yesterday and he carried back BAD bad paper. And he’s being very stubborn in discounting it. If you don’t need to sell it then don’t sell it if you like 7%. But if you have better investments waiting, why not liquidate?

That’s my question: “Why would you NOT Liquidate???”

-The payer put down $6,500 which is only 5% down,
-The payer’s have NO credit so they’re score is 550,
-The Interest rate is only 7% in a market where most investors buy notes to yeild 11% or 12%,
-And it’s amortized for 30 years with NO balloon!

This is a bad note- period. I’ve seen worse, but this certainly won’t get top dollar if liquidated by any prudent note buyer. But at least it can be sold. Some promissory notes don’t have that option.

So the seller wants 90,000! But I can only offer 70,000.

Now I know whopper deals like the “buy for 65K and flip for 5.5M” is no average deal but this real estate investor told me that he commonly buys HUD properties for 40K and flips them for 120K and that IS a common scenario for him.

So why not accept my offer of 70,000 if you can buy two properties for 35,000 each and flip them for 105,000 each??? 105,000 x 2 = 210,000 and 210,000 – 70,000 = 140,000 THAT’S A 300% ROI if he did it in a year. But this investor said it would only take a few weeks.

So if he took the money from the note sale which typically takes 12-14 business days -lets say three weeks to be conservative-, and he took 5 weeks (not just 2) to purchase a 35,000 steal and sell a 120,000 deal, then over the course of 2 months then he made…

an 1800% yearly Return On Investment!!!

Buy properties for steals and sell them for deals!

That’s the motto that most real estate investors are following in this downward market cycle and they are doing pretty well. I talk to many real estate investors every day and it seems that the best use of their time and money is flipping properties quick by purchasing incredibly low priced properties:
-from banks,
-from property sellers that need out before the bank forcloses even though they have alot of equity,
-or from the government as tax foreclosure sales.

He’ll come around, I know he will, and when he does, he’ll turn his money over quicker and do it again!

This guy makes money for a hobbie so I know he and I both know the best decision…

Sell the note at a discount so you can buy heavily discounted property and flip it quick by offering to carry financing that you turn around and sell at a discount.

What can I say? It just works!

If you have any questions I am more than happy to give you a moment of my time to answer them.

Regards,
Andrew Distad
Investor
Cash4PromissoryNotes.com
(760)-296-1573

More than just a note seller – a good friend

I just found out my friend Don died. He was 67. I met him because he wanted to sell his promissory note and just spoke to his daughter today and they buried him yesterday. He was the one of coolest guys I knew. He was a boxing heavyweight champion by the age of 16, repaired a sunken boat in Florida and went lobster scuba diving, got a permit to hunt Kodiak Grizzly bears in Alaska. What an awesome guy. I really miss him. I wish I could call him up but I can’t. We used to talk on the phone for hours, but now we’ll just have to wait until I go to heaven too.

He was born in Florida near the original burger king, lived in Tennessee, and lived in Georgia until now.

Out of all of the life stories I’ve heard, his was one of the best.

I miss you Don.

Andrew

How to Sell a Private Mortgage Note

So how do you sell the monthly payments you’ve been receiving since you sold your property with seller financing?

You need a pro.           Period.

If you have not spent years in the market like I have, you don’t know how to evaluate a cash flow, determine it’s security and know what the current competitive market yield is or how to package the relevant information acutely and correctly, and don’t know the current market conditions -local and continental- then you’re lost.

When you’re lost, you need to find your way.

Instead of learning to swing from vines in the middle of the amazon jungle and hope you make it back to your home in America (especially if you’ve never done it before) then it helps to just have someone who knows how to fly a helicopter, who knows how to operate it, has a compass, and knows exactly where to go and how to go there -if you’ll just start climbing the rope latter I let down- you’ll be home in time for supper.

Trying to sell a mortgage note to someone you don’t know and don’t trust is like holding a bucket of money blind folded on a windy day, …You’ll lose a lot of money.

Trust is crucial.

People need someone they can trust when they’re making a large financial transaction. When you make a significant financial transaction you need to make sure you’re working with someone that is real with you, that tells you the truth, doesn’t play games, doesn’t give you sales pressure to accept a price, and has your best interest in mind.

You need someone who knows the market.

This downward market cycle has thankfully cleared out some of the unethical players in this game because they have reaped what they have sown, however some are still sowing and awaiting their crop.

You need competitive pricing, and someone who will tell you the truth about your situation and someone that won’t lead you down some sales funnel. Our pricing is what it is, and we collect as much information upfront so that our pricing has the least likelihood of changing, but everyone who gives pricing on the secondary market always has contingencies when they have not seen a credit report, recent appraisal, or title policy which are things you never have to pay for when selling your promissory note to me. We also constantly network with emerging investors to insure the most competitive pricing in today’s market. But price is just as important as working with the right person.

You need someone who follows the golden rule, the RIGHT golden rule.

There are two golden rules floating around out there and I would like to clear up which one always applies:

“He who has the gold makes the rules”

“Do unto others as you would have them do unto you”

Although the first one applies sometimes, the second one ALWAYS applies to every situation in life. People want to do business with people who have their best interest in mind and they want to receive their money from someone who is not trying to take them to the cleaners.

If you have any questions I would be more than happy to answer them.

Warmest Regards,

Andrew Distad

http://www.Cash4PromissoryNotes.com

(760)-296-1573