www.armstrongcapital.com

May 22, 2013

www.secretsofpaper.com

 Volume 2          Note-able Newsletter        Issue 21

President's Corner - Tip of the Week - Weekly Quote - Featured Article

Upcoming Events - Subscriber Question - Product Highlight
 
Tip of the Week

 Did you know....

      Most people starting in the note business set unrealistic goals and get discouraged before gaining momentum. It is far better for you to set small, realistic goals.

Product Highlight

       So you've decided to follow your entrepreneurial spirit get into the seller financed note industry. You've heard about notes but aren't sure if what you heard is truth or hype.  Before you jump into the unknown, this 6 hour audio set will give you the reality of the note business, information and tools to decide if this business is for you. Find out step by step what it takes and how it's done. Learn the good, the bad and the ugly prior to committing your time, effort and money to a business that may or may not work for you.  Both Entrepreneurs as well as for Real Estate Professionals (Realtors, Real Estate Investors, RE Agents, RE Brokers, etc.) will benefit from the Note Business by using notes themselves and encouraging property owners to consider Seller-Financing.  You will learn the basics of how to create a good saleable note as well as suggested property sale and note structures.

Click for more info and to order TODAY! When you order in May you will also receive the Glossary of Note Terms E-Book for FREE!

Upcoming Events

 

 

September 2013

     Chicago, IL

     Secrets of Paper

     Dates TBA  very soon!

 

2013

     Los Angeles, CA

     Secrets of Paper

 

April 25-26, 2014

     Las Vegas, NV

     Paper Source

     Note Symposium

 

 

Watch for Exclusive

Fred Pryor CareerTrack seminars

facilitated by Jeff,

details coming soon!

 

Ask Jeff to come and

speak or teach

to your group or

at your event!

 

Coming Soon

Exclusive

Note-able Membership

with Videos,

Training, Tools

and Support!

 

Quote of the Week

“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.”
                                                              ~ Winston Churchill

Learn to invest in and broker notes... the

Secrets of Paper 201 Home Study Course is

Your Launching Pad to Success in the Note Business!

Always includes SOP 101 audios - Introduction to the Note Business PLUS when you order SOP 201 in this month you will also receive the "Art of Target Marketing for Note Holders" 5 part video series

(regularly $99) for FREE!
President's Corner

          This week I will share with you the final installment of the 35+ most common questions I receive from note brokers and consultants about how I run my business, along with the answers of course.  Here we go:

 

26.  Do you do simultaneous closing transactions?                                                   No, I do not know of anyone currently doing these at the moment. Note investors are requiring at least 1 payment to be paid and 30 days to pass from the date of the sale of the property before they will fund a note purchase.

27.  Do you have an e-mail address?                                                                   

                        Yes, jeff@armstrongcapital.com

28.  Do you have a website?                                                                      

                        Yes, www.armstrongcapital.com

29.  Do you make lists, tickler files, etc?                                                 

                        Yes, lots.  To name a few, I have lists of note holders to call back in 3, 6, 9 and 12 months as well as lists of past note holders who we have done partials with who may need more money in the future.

30.  What is your average commission?                                                  

                        Over 17+ years of business my commissions have averaged about $3,880.

31.  What Note Industry Newsletters do you subscribe to?                  

              There is only one right now - Paper Source – www.papersourceonline.com  

32.  What seminars have you attended?                                      

                        American Cash Flow Institute  - Mike Meeker - John Shaub -

                        Jon Richards - Hank Harenburg - Lonnie Scruggs - etc          

33   33.  What do you think is the best way to get started in this business?

                        Learn Real Estate business, take classes for your Real Estate License, take a good beginning note workshop (my Secrets of Paper 101 and 201 are a great start), find a good mentor and plan to subsidize yourself for 6-12 months.

34.  Do you work with new brokers?                                                       

                        Yes, absolutely. I have assisted countless individuals on their path to success in this business.

35.  Can we call you if we have a note for sale?                         

                        Yes, absolutely. Fax or email over a completed worksheet and we’ll be happy to price it out for you.

36.  36.  Can we call you if we have a question about the business or about a particular transaction?

                        Yes, absolutely. Email is best most of the time.

                I hope you enjoyed the last three weeks of the most common questions I am asked.  Remember, Success Demands Action! Keep on marketing, it’s going to work! TWITA!

Feature Article

Interview by Cash Flow Exclusive

          Ralf Bieler, President & CEO of Cash Flow Exclusive, LLC, caught up with Mr. Armstrong to talk with him about his business and his outlook on current events as well as the effects of the economy and political situation on the note buying business overall. Read on to get an up-to-date and in-depth industry expert view on the opportunities and challenges within today’s seller-held note industry. Read more...

Question of the Week

Q – Hey Jeff: 

           I bought a house in June and paid cash for it. I have spent the last 3 months doing an extensive restoration (about $70k in construction) of the home and it is just about finished. I think the appraisal is going to come in around $150,000 or so. I would like to get my cash out of the property and I am looking to either get a

mortgage on the property or write a note if I can't get bank funding. My personal credit is excellent. I bought the house with my corporation and my business credit is stellar also. What would you recommend I do to get $100,000 out of the house?

                                                              ~ Bob T.

A – Hi Bob!

 

Thanks for the email! In short, if you are keeping the property then with that kind of equity I am sure you can find a good loan from some institution.  If you are selling the property the you can offer seller financing and get terms like this:

 

- 10% CASH Down Payment (non o/o 15%+) the more down the better for you)

- 9% Interest Rate or higher

- 30 Year Amortization

- 7 Year Balloon

- 650 Buyer Credit Score or higher (non o/o 675+)

- Minimum 1 Month of Seasoning*

 

Using the above terms, and IFF the property does appraise for $150,000 (you should only sell it for what we can get an appraisal for) it might look something like this:

 

Sales price $150,000

Down Payment $15,000

Seller Carryback note $135,000

 

the note would be $135,000 at 9% amortized over 30 years with a payment of $1,086.24 per month and a balloon payment in 7 years of approximately 126,414.

IF the buyer you find has 650+ credit you would collect the first payment and we could buy the note at that point for about $105,825.00 NET to you. So out of the entire transaction you would get the down payment of $15,000 plus the first payment of $1,086.24 and $105,825 for the note for a total of about $121,911.

However, if the interest rate is lower, the credit is worse than 650 or the down payment is lower you will not get as much. Hope this helps!

                                                      ~ Jeff

So you want to invest in or broker notes?

Been trying for awhile with limited or no results?

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