- Big Yields From Small Deals
Published: Thu, 10/25/12
(a Note Course Bonus)
November 13, 2012
"Every time you hear someone say that they need to buy something,
but they don't have the money, you should consider that a potential
money-making opportunity." -- Lonnie Scruggs
Hello again ,
Today Lonnie Scruggs gives us some real-world advice on
"taking the mystery out of money." I'm sure you will profit from
it!
And I wanted you to be among the very first to know about
a project I have been working on for over a year:
"The Paper Source University." I have put together a
curriculum to teach you virtually everything I know about
notes. It has just opened up for enrollment.
You have your choice of four levels of study -- the first
level is free. The other levels are $77, $167, and the
most advanced level is $397. You can upgrade at any time.
Unlike what you may have experienced before, you won't get
phone calls pressuring you to spend more money.
Those tactics are a disgrace to our industry.
The advanced level training is only available to 100
students because it includes personal mentoring, and I
do it myself. So when 100 people sign up, it will no
longer be offered.
See the free video at www.PaperSourceUniversity.com and
let me know what you think.
Cheers,
Bill
W. J. Mencarow
The Paper Source, Inc.
www.PaperSourceOnline.com
www.cashflows.org
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Big Yields From Small Deals
(an excerpt from Lonnie Scruggs' book "Taking The
Mystery Out Of Money")
Just this week, Eric, a young man in our local real
estate club, said he only had $5,000 and wanted to know how he
could get started with such a small amount. I told him that the
amount doesn't matter; what matters is that he get started. And NOW!
My advice to Eric (and to you) is to stop thinking like the
"average" person, unless you want to be average. The average person
expects to work a job for 30 or 40 years, then retire on a "fixed
income" that somebody else fixed. If all you want out of life is to
be average, just do what average people do. But I hope you set your
goals to be much more than average.
The only real difference between rich people and poor people, is
the way they think. So start thinking in a different way; start
seeing things in a different way; and start doing things in a
different way. Start thinking like the entrepreneur that you were
meant to be. Entrepreneurs don't wait for deals--they create
deals.
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Don't miss out on the Early Bird Discount for the next
Paper Source Note Symposium: Ca$h Flow Profits!
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Now, let's get started making big yields from small deals. And the
first requirement is to get rid of all that "stinking thinking."
Forget that "good education," "good job," "good retirement"
brainwashing the schools laid on you. That's what keeps average
people average.
How to make 15% to 20% the simple way
Making 15% to 20% returns on your money is simple. And there are
opportunities all around you if you will look for them, recognize
them, and act on them. Every time you hear someone say that they
need to buy something, but don't have the money, you should
consider that a potential money-making opportunity.
There are always people who need to buy something but don't have
the money. And because of their lack of financial discipline, they
never will. But they can make monthly payments with no problem. So
focus on these type people and get in the financing business.
That's where the real money is. And it's such a simple and easy way
to create passive cash flow.
Some of my best customers are former tenants and people who bought
mobile homes from me. Even after they pay off the home, many have
called later wanting to borrow anywhere from $1,000 to $5,000. And
none of them have ever complained about paying 18%, or more, in
interest. Most of them doesn't even ask what the interest rate is.
Also, most of them want the payment to be the same as it was on the
mobile home.
$308 per month for life
Within the last two months, I've made five such loans. One was for
$4,000 to a woman who bought a mobile home from me eight years ago.
Her payment on the home was, and still is, $308 monthly. For the
past eight years, she has never missed a month paying me $308. And
in all probability, she will continue paying me $308 every month
until one of us dies.
Every time she gets close to paying the loan off, she calls wanting
to borrow more money. So I just add the remaining balance to the
new loan and start over...
I'm still doing business with a couple who rented an apartment from
me over fourteen years ago. How's that for steady cash flow? Every
time they want to buy another car or pickup truck, they call me for
the money. I've lost count of how many we've done.
Last month, I made a $1,000 loan to another one of my mobile home
buyers who needed to have some dental work done. This week one of
my past customers wanted to borrow money to get her mama out of
jail. Hey, I swear, I'm not making this stuff up. Folks, this is an
amazing, amusing, and profitable business.
These are just a few of the many actual deals I've done. And my
yield/return on all of them was at least 18%. Most of them were
much better.
Attention landlords!
Here's a simple way how some of you landlords can create extra
income from your tenants. What does your tenant do when they want
to buy new furniture? Or that big screen TV? Or a new computer?
They most likely put it on a charge card or get the store to
finance the purchase at 18% to 21% interest. Why don't you offer
to finance what they want and collect that interest?
Let's suppose you learn that one of your best tenants wants that
latest big screen TV costing $1,000. They won't ever save $1,000,
but they can make payments forever. You find out which TV they
want, negotiate a 10% discount for a cash sale, and have it
delivered to them. (If you can't negotiate a 10% discount for cash,
you need a seminar on negotiations).
You charge them $1,000, plus $75 processing fee or whatever you
want to name it. They pay the $75 processing fee and sign a note
for $1,000 payable $50 per month for 24 months. What have you just
done? You've just created a little note that will earn you 38%.
Let's go over each step.
You negotiate a 10% discount ($100) off the price when you buy the
TV. It's not hard to get a 10% discount for a cash purchase. But
you do have to ask. Try it! You charge your tenant the retail price
of $1,000, plus a $75 processing fee. They sign a note for $1,000,
payable $50 monthly (more if you can get it) for 24 months. You now
have $825 in a note with a face value of $1,000. What is your
yield/return? Try 38%.
Never let the mail carrier pass your house without leaving a check!
Lonnie Scruggs owned, rented, and managed his own rental properties
for some 30 years. He became a burned-out landlord, sold all his
rental properties and started investing in discounted notes.
He soon developed his own speciality in used mobile home notes,
with little competition and earning high yields. Lonnie tells
all and shares his inside secrets in his books:
http://store.papersourceonline.com/taking-the-mystery-out-of-money/
http://store.papersourceonline.com/deals-on-wheels-2/
http://store.papersourceonline.com/making-money-with-mobile-homes/
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Check Bill Mencarow's blog every day for breaking news about notes
and more: www.papersourceonline.com/blog-articles/
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