{"id":1135,"date":"2008-11-03T11:52:49","date_gmt":"2008-11-03T16:52:49","guid":{"rendered":"http:\/\/www.DuncanWierman.com\/content\/?p=1135"},"modified":"2017-02-01T21:22:19","modified_gmt":"2017-02-02T02:22:19","slug":"flipping-notes-for-fast-cash","status":"publish","type":"post","link":"https:\/\/www.duncanwierman.com\/content\/flipping-notes-for-fast-cash\/","title":{"rendered":"Flipping Notes for Fast Cash"},"content":{"rendered":"

Become an expert in the discount mortgage market. <\/strong><\/em><\/p>\n

The business of flipping discount mortgages requires some easily acquired knowledge and skills but requires little or no cash. That is one of the many reasons the discount mortgage business needs serious consideration.\u00a0 Let me first explain what a “Mortgage Flip” is for those of you who are not familiar with this concept.<\/p>\n

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Step #1<\/strong>–Find someone who has sold a property and as part of the transaction has taken back a mortgage. For any number of reasons (probably because you told them it was possible), they are now willing to sell that mortgage if they can end up with some cash.<\/p>\n

Step #2<\/strong>–Find a buyer for that mortgage.<\/p>\n

Step #3<\/strong>–Facilitate the transaction.<\/p>\n

Step #4<\/strong>— Pocket the difference between what the seller wanted and what the buyer would pay. This may be somewhat simplified, but there is not a lot more to it once you know what you are doing.<\/p>\n

Getting Started<\/strong><\/p>\n

There is only one absolute necessity to get started, and that is a telephone. As long as you can get to a phone, you are in business. This business knows no geographical boundaries. I have successfully closed transactions from Hawaii to Alaska to Pennsylvania. The best part is you can do it all without ever leaving your chair.This business offers tremendous freedom. I work out of my house because it suits my lifestyle. I can roll out of bed when I want, and I am at work.<\/p>\n

A Very Simple Business<\/strong><\/p>\n

This is a very simple business. You find someone who has something they probably do not want and match them with someone who wants what they have and you get paid handsomely for that service. What is nice is that you can do this without ever leaving home.<\/p>\n

There is one final benefit that I would like to mention, and it is an important one. Two things are happening as you become more experienced and close more discount mortgage transactions.<\/p>\n

1) You become an expert in discount mortgages. By working with the institutional buyers, you learn to tell the difference between good and bad transactions, what documents you need, what research needs to be done, etc. In other words, you are being taught all the intricacies of the business by experts.<\/p>\n

(2) The best part is while you are learning you are getting paid. So, when a really good mortgage comes along, you are in a position to invest in that mortgage for your personal portfolio at rates of return other people do not even dream about. This is the way you create wealth. It does not get any better than that!<\/p>\n

Below is ALL the information you need to hunt down the treasures. I guarantee that NO one else is doing this or know how to do this.<\/p>\n

To begin, you need to understand what is a “note holder.”<\/p>\n

A NOTE HOLDER is any individual or company that has sold a property and is receiving payments directly from the buyer. For many reasons, the NOTE HOLDER has chosen not to go through a conventional lending institution. The NOTE HOLDER receives payments usually on a monthly basis and does not receive a “one lump” payment.<\/p>\n

In many cases, the NOTE HOLDER is motivated to sell their note to receive a large amount at one time instead of having to “service” the note such as hiring an attorney to collect if the buyer falls behind on payments which happens quite regularly.<\/p>\n

Also in many cases, the NOTE HOLDER usually does not want to owner-finance.<\/p>\n

Something unpredicted comes-up;<\/p>\n

People have difficulty in getting a loan from a conventional lending institution for various reasons.<\/p>\n

* \u00a0Bad credit * \u00a0Un-paid credit cards * \u00a0Past bankruptcy * \u00a0Defaulted loans * \u00a0Unpaid college loans * \u00a0Divorce proceedings * \u00a0Too much debt * \u00a0Low credit scores<\/p>\n

TIME VERSUS MONEY<\/p>\n

Let\u2019s say that an individual sells his\/her property and takes back a mortgage. They are now the NOTE HOLDER.<\/p>\n

The property has been sold for $100,000 with a 10% interest for 30 years<\/p>\n

That would be a total of 360 payments at roughly $1,000 a month<\/p>\n

360 payments of $1,000 @ 10% = $360,000 total payout in 30 years<\/p>\n

You contact the NOTE HOLDER and offer $92,000 cash at closing for their note.<\/p>\n

They counter back with “what about the $360,000 total???<\/p>\n

You say, “Remember when you stuck one nickel in a coke machine for a coke 20 years ago”???<\/p>\n

“Well, today you stick ten nickels in that Coke machine for the same 12 ounces Coke.”<\/p>\n

THAT is what time versus money means!<\/p>\n

Most often they get the point!<\/p>\n

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WHAT TO LOOK FOR<\/p>\n

When trying to find people who are currently holding Owner-Financed Notes\/Mortgages,<\/p>\n

There are several ways to do it, and it can at first be quite confusing.<\/p>\n

When entering a county courthouse, go directly to the County Clerk\u2019s or Recorder\u2019s office.<\/p>\n

This is the office in every county courthouse where all property records are filed.<\/p>\n

The first step is to locate the OPR records, (Official Public Records).<\/p>\n

Then find the INDEXES to the LAND RECORDS within the OPR<\/p>\n

The land records INDEXES include all the documents that are filed about Real Property or Real Estate.<\/p>\n

There are several names for the document you are looking for.<\/p>\n