There Are NO DEALS OUT THERE... - Continued

Here I am going to relate just a couple of stories that two students who purchased THE NOTE PROFESSOR NOTEBOOK related to me within the past week. The first story is about John, who is new to real estate, and recently purchased the NOTE PROFESSOR NOTEBOOK. He called me and said he had a question about the material. "I am on page 29", he said. This is a chapter that gives concepts of using notes as options, but this guy was way ahead of the game. John was able to put together two concepts in the same deal.

He found this property where he discovered the 1st lien was owner financed, and lived in West Texas somewhere. The property itself needed a lot of work, and was vacant. Do you think with a vacant house that needs repairs, the note holder is getting timely payments? Do you think he wants to come back to Dallas to take care of a vacant house needing repairs? I would not, would you? This is a note buyer's dream.

He wanted my advice as to how to move forward….should he make a contract on the house first, or the contact the note holder, and get an option on the note? We decided it would be better to get an option on the note before making a contract on the house. This way if he and the property seller do not come to terms with the purchase of the house, and he is successful in getting an option to purchase the note, he can merely record a notice of option, and sit back and hope the house will sell. When the house sells, the title company will be contacting him….nice, huh. If he is successful in buying the house for his price, he will get a "double money whammy"…buying a house at wholesale price, and then getting even more of a discount by purchasing the note at a discount. This concept is covered in Chapter 7 of the NOTE PROFESSOR NOTEBOOK (Click here). I want to congratulate John for being able to grasp concepts, and apply them to the real world so quickly.

The next story was a renter who purchased THE NOTE PROFESSOR NOTEBOOK. This story will show how with even small amounts of money, you can obtain astonishing yields. Jane called me and wanted to know how to start investing with only $3,000. She rented a house, but had never asked her landlord to take a discount if she prepaid. She was paying $800 a month rent. I suggested she ask her landlord to take a 10% discount on her rent for 3 months. This is only a $240 discount. The landlord would not go for that much of a discount, but did settle for $100 discount. This will give Jane around 52.95% yield. (To determine this yield, you will need to set your financial calculators to "BEGIN" mode, because rent yields start from day one, while mortgages are determine at the end of the pay period.) I will go into this in another issue of THE NOTE PROFESSOR NEWS LETTER. Are you grasping something here? Anytime you can prepay something and receive a discount, the smaller the N (pay periods), the less it takes of a discount, or PV (Present Value) it takes to raise yields to astronomical figures. If you have yard work, hair stylers, or anything you do on a regular basis, and are dealing with someone you can trust, offer to prepay at a discount. You will be surprised at the yield you will receive.

I decided to give some true examples of how you can use the knowledge of the time value of money to show you that the deals are out there. Real estate does not have to just be a 1. Find distressed sellers 2. Offer them below market value 3. Then flip the property. Becoming wealthy also means letting your money work for you, instead of the other way around. Learning the concepts of the time value of money will open doors of creating wealth that will be passed by if you do not understand how to apply these concepts, not only in real estate, but your every day life.

Try these techniques, then get back with me and let me know how you came out. I love success stories.

GREAT BARGAIN: I have three NOTE PROFESSOR NOTEBOOKs that either have minor flaws, or were the old ones without page numbers. I am offering them at a $50 DISCOUNT. The first three who contact me can purchase these at ONLY $49.95.

Hurry…When they are gone, they are gone!!!

Since this is a special deal, and not through PayPal, you will have to contact me by email or phone, and we can work out the payment.

Click here to contact me about receiving THE NOTE PROFESSOR NOTEBOOK, at the DISCOUNTED PRICE.