Free Cash Flow Teleseminar TONIGHT
Published: Wed, 03/06/13
Just a reminder that the free teleseminar on brokering and investing
in privately-held mortgages and trust deeds is TONIGHT, Wed.,
March 6.
Dawn Rickabaugh will be teaching how she engineers owner-held note
transactions.
The teleseminar will start at:
6 p.m. Pacific;
7 p.m. Mountain
8 p.m. Central
9 p.m. Eastern
and last 30-40 minutes. Call 712-451-6000 when it starts in your
time zone. When prompted, enter the access code 903809 followed by
the # button.
(Sorry, you cannot use Magic Jack.)
Also, Dawn will be teaching at the Paper Source Note Symposium
April 26-27 in Las Vegas. Discount registration expires March
22. See www.PaperSourceSeminars.com for details.
In case you missed the last e-mail, below Dawn gives us a just a
hint of what you can do with what she will teach!
Cheers,
Bill
W. J. Mencarow
President, The Paper Source, Inc.
www.PaperSourceOnline.com
www.PaperSourceUniversity.com
**************************************************************
By Dawn Rickabaugh, www.notequeen.com
Approximately 25% of my note acquisitions come as a result of my
consulting services.
Recent example:
Local attorney had parents on the East Coast who needed to do a
1031 exchange out of their commercial building. They wanted the
replacement property to be a residential income-producing property
in Long Beach, where their atty son could manage it for them. It
was an important part of their retirement income.
Funds available for the acquisition: $256,000. Minimum funds for a
dumpy little duplex: $280,000. The $24,000 gap was too small for a
hard money loan, and they couldn't afford it anyway. It needed to
be fully amortizing and still leave them the $1,000/month in
positive cash flow that they needed, and they were seriously
running out of time to qualify for the 1031 exchange. I customized
an owner carry back note for $30,000 that I bought for $24,000.
Gross rents: $2,000 Expenses 40%: $800 Receivables before debt
service: $1,200 Need to live on: $1,000 Available for debt service:
$200
Regardless of the profound safety (9% ITV or so), I didn't want to
hang out for more than 8 years.
I asked the attorney son when he thought that he would have the
property throwing off more income, and he said that within 2 years,
they could afford $500/mo. and still leave $1,000 for his parents
to live on.
So, here's what we did:
$30,000 note 6% 180 $253.16 for 2 years
$27,376.52 balance 8% 72 $480 for 6 years, fully amortized
The $24,000 purchase gave me a 13% yield on a super safe note that
I brought a new note investor in on for 8%, so I made $750 for
consulting services (paid out of escrow by buyer), $2,500 up front
on the cash flow (investor brought in $26,500), keeping about
$25/month to service and process the payment on behalf of my novice
investor. If anything goes sideways, it will be my job and my dime
to remedy the situation and keep my investor whole.
On a super small note, I made $750 plus $2,500 = $3,250 up front
plus
$25x96=$2,400, that is, $5,650 total over 8 years
And, the best part, they thanked me up the ying yang for saving the
1031, the seller got their price, the buyer can live with the
terms, and the agents involved got their full commissions (I talked
the seller out of asking the agents to discount their commissions,
and we worked the numbers out through the note creation and sale).
The attorney son and his wife insisted on taking me out to dinner
as a thank you.
At The Paper Source Note Symposium I'll be teaching exactly how
I engineer these kinds of transactions and MORE -- I hope to
meet you there! -- Dawn
DISCOUNT REGISTRATION EXPIRES MARCH 22: www.PaperSourceSeminars.com