THE CASH FLOW EXPRESS

A Service of The Paper Source, Inc.

October 3, 2014

 

 

Hi ,

 

There are lots of places you probably haven't thought of to look for notes -- and the dentist's office is likely one of them!  Del Ashby's article is below.

 

The  60-hour sale on the "Profits In Non-Performing Notes" conference expires at midnight tonight, Friday.  

 

From now until midnight Pacific time you can register for just $297.00 -- instead of the $395.00 on the website.

 

Go to http://papersourceseminars.com/non-performing-notes-seminar-2014/ and click on the "Register Now" button.  In the coupon code enter:

 

 

As you'll see from the above website, we have lined up the top non-performing note experts in the nation -- people who DO what they teach. 

NO SALES PITCHES ALLOWED. 

 

And you can sit down with them for one-on-one personal consultations at no charge.

 

Your $297.00 registration includes seminars Thursday afternoon, all day Friday and Saturday until 1:00 p.m., plus open bar receptions, continental breakfasts, an elegant served luncheon, private consultations...even an optional canyon hike to unwind after the seminar...all included!

 

Join us for an unforgettable networking and learning opportunity that could benefit you for years to come!

 

Cheers,

 

 

W. J. Mencarow

President, The Paper Source, Inc.

 

P.S.  , The coupon code will expire midnight tonight, Friday, and the price will go back to $395.00.  

 

Don't miss out on this -- go to  http://papersourceseminars.com/non-performing-notes-seminar-2014/ and use the coupon code 60hoursale

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My dentist is a very aggressive marketer of his business, with several branches and more than 15 dentists in the branch I visit.  On the wall of his lobby is this sign:   "Bright smiles are always in style.  Talk to us about braces for the entire family.  Financing available...$59 per month for children and $69 per month for adults.  No down payment."   

Notice that he does not mention the interest rate or the number of months that the financing will last.
 
The receptionist told me that her ten-year-old is about to go into that program.  After her dental insurance coverage and after a courtesy professional discount, it is going to cost her $3,600 out of pocket...for one child.   
 
While I intuitively wouldn't want that set of braces as collateral, maybe there is a way to get the dentist to guarantee the loan, or maybe there is some other way to secure it.  Is it UCC paper, a straight personal loan, or what?
 
With people saying they can't find notes, maybe a look at financing all kinds of other things could become a new market.  Remember, there is that segment of the population that doesn't ask what it costs, just "how much down and how much a month?" 

Let's look at the possibilities on the calculator where the dentist sets the payments at $119.51 per month for three years (the 12% interest rate reflects the collateral risk):
 
 N   I    PMT      PV    FV
36  82  119.57   3600    0
36  28  119.57   2880    0
15  34  119.57   1440    0
21  12  119.50   2254    0
 
Line one shows the original loan conditions.  Line 2 shows the result for us if we purchase the note at a 20% discount from face, or $2,880 -- a 28% yield.
 
  As an alternative, suppose we were to buy enough to pay his costs in the job (salaries, rent, supplies, etc.), say 40% of the note ($1440).  Line 3 shows our cost and yield -- 34% .  PV in line four shows the balance of the note when it reverts to him after our payments have been collected.
 
You can see that in the total purchase case you get a return of over 28% and on the partial purchase you get over 34%.  He will have a loan balance on over $2250 still left after you have collected your 40% (15) of the payments.  Such a deal might be salable with a small practice which wanted to offer financing and needed the cash now to handle the other expenses.
    
  As always, be sure to determine which law the financing is covered by, how you would "foreclose," and evaluate it as a business opportunity with proper due diligence.
 
Delbert Ashby is a highly respected note investor, broker and author with decades of experience.  He is a recognized expert doing the very things he writes about.  He has taught hundreds of others to do the same and does business with them regularly. He is the author of "Make Money Trading Mortgages," an indispensable guide for note brokers (and those who want to be).  You can download his book for only $19.97 at  http://store.papersourceonline.com/best-beginner-book/