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H & P Capital Investments LLC
Issue 22
April 2007
Small Notes Sell Well
happy guy4

A small note,under 20k, came to me at the first of the year. We were ready, willing and able to buy the note . However the Paper was a contract for deed which had to be converted to a note and deed of trust to comply with new Texas law. This was only a minor correction in the satisfying of the critical 3 P's: the Paper, the Property and the Payor. The Property value was more than acceptable. However the Payor had major gliches, not with payments, but with estate and heirship issues. Also the seller, the executor of the estate, had to satisfy probate issues. In this deal our patience and experience were the name of the game, keeping the title company, the seller, and the payor all moving forward. Finally everything was in proper order and the note deal closed with the seller walking away with his cash and the buyer obtaining a clear title to the property and we added a quality note to our portfolio. Another H&P Capital Investment LLC Note buying/selling Success.

If you have a note to sell Click here for more information
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Interest Rate Risk
Possibility that a fixed rate debt instrument will decline in value due to a rise in interest rates.

Note Professor Notebook

If you cannot attend a Note Professor "How To Get Rich with Notes" class, be sure and purchase the Note Professor Note Book manual to enhance your knowledge of creative real estate financing and note selling.

Click here for more information.
Buying and Selling Note Class
with Tom Henderson

Because the last class in February was sold out, I was asked to give a repeat performance "How to get Rich with Notes" Class to be held April 28 and 29th in Dallas Texas.
Call Aina for details at 972-644-9885

Turn 2nd Lien Notes into Gold.
written by Tom Henderson
note to gold

Not a month goes by that I do not get at least one question as to what a 2nd lien is worth. With rare exceptions, 2nd liens are not marketable to note buyers, especially if you have a small 2nd behind a large 1st. The risk just outweighs the reward.

Here is a powerful wealth building technique that comes from my NOTE PROFESSOR NOTEBOOK. This technique works well, no matter what position the note. Trade your 2nd lien AT FACE VALUE for real estate or personal property.

FOR EXAMPLE, there is a property that has a $100,000 ARV. Everybody is offering him $50,000. You are holding a $10,000 second. Why not offer $60,000? The $50,000 cash that everybody else is offering, PLUS your $10,000 second? Put yourself in the position of the seller. Which offer would you accept? The $50,000 cash only, or the $50,000 cash PLUS your $10,000 note?

You now have turned your “unmarketable” 2nd lien note into gold. Be sure to disclose to the property seller that there is always a chance the note will default. Just be honest, and do not mislead the property owner.

I am advising you to seek out expert legal and tax help before doing any note or real estate deal.

If you have any questions or comments, be sure to contact me. Your feedback tells me what you want to learn.

Remember, if you want to sell your note click here for your note buyer quote.

All rights reserved.H&P Capital Investments LLC

Subprime Loans and Note Buyers & Sellers
written by Tom Henderson

As you know, the “easy money” era, where someone with a low 500 FICO score could obtain a 0 down, no doc loan from subprine lenders is now causing much turmoil in the real estate industry. Add to this, the fact that in many areas real estate prices have flattened at best, and actually gone down at worst.

HOW DOES THIS AFFECT YOU? the note seller. You are going to find that Note Buyers for both home owners and investors are:
1. giving more attention to the value of the property,
2. the amount of the down payment is going to impact the value note, especially with investment property.
3.and the lower the payors credit score, the more consideration is going to be given to the Loan to Value of the property.

Just like mortgage lenders, you want to make sure you do your due diligence when selling your property using Owner Financing.
1.To begin, have the buyers fill out a credit application. (If you do not have one, click here and I will email you one).Look this over. Is this someone who you would want to lend thousands of dollars?
2.Next, have them pull their own credit report and give it to you. Have the buyer go to www.myfico.com for credit scores.Look this credit report over. If they have a low 500 credit score, you are not going to get maximum value for your note.
3.If you want to keep the note for cash flow, great. One word of caution though, do not depend on the payors raising their credit scores. More often than not, they have low credit scores because of their life styles and attitude.

As a NOTE BUYER, I can only think of one thing worst than the subprime lenders going belly up; and that is my going belly up.
Click here to sell your note.

All rights reserved.H&P Capital Investments LLC

Tom Henderson
H&P Capital Investments LLC

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H & P Capital Investments LLC | 6138 Luther Lane | Dallas | TX | 75225