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
