Paper Source Note Symposium 2017 Advanced Notes Techniques

Paper Source Note Symposium 2017 Advanced Notes Techniques for Buying Notes and Real Estate By Tom Henderson Copyright © H&P Capital Investments LLC All rights reserved www. hp. NOTES. com

Tom Henderson H&P Capital Investments, LLC 1. 800. 481. 6588 www. hp. NOTES. com

CAN WE AGREE: v TURN OFF CELL PHONES v THIS IS NOT A CALCULATOR WORKSHOP, BUT WE WILL BE DOING A LOT OF “NUMBER CRUNCHING” v THIS WORKSHOP IS NOT MEANT TO COMPLETELY EDUCATE YOU ON HOW TO ADDRESS ALL THE COMPLEXITIES OF PARTIALS, ie PARTIAL CONTRACTS and LEGAL ACTIONS IN THE EVENT OF DEFAULT v EACH TOPIC COULD BE A SEMINAR ON ITS OWN v I INVITE QUESTIONS, BUT AT 5: 30 ALLIED SERVICING HAS FREE FOOD AND DRINKS v I WILL BE AVAILABLE TO ANSWER ALL YOUR QUESTIONS THROUGHOUT THIS SYMPOSIUM. JUST GRAB ME!! v ROUND TABLE AT 4: 00 P. M. Friday WE HAVE A LOT TO COVER so LET’S GET STARTED

There Are No Stupid Questions Stupid People Don’t Ask Questions

“It Is Not Enough to Do Your Best You MUST KNOW WHAT TO DO Then Do Your Best” “Learning is not compulsory; but neither is survival” W. Edwards Deming

How Many Would Like to Receive $5 K $10 K $15 K or Even $20, 000 Each and Every Month with an Auto Pilot Program from Your Home? SO WOULD I

Above All Else REMEMBER THIS AXIOM: YIELDS ARE TARGETS ONLY YIELDS ARE NOT REALIZED UNTIL YOU ARE PAID OFF!!

CTA Covering Tom’s Assets Always Obtain Professional Tax and Legal Advice Before Applying Any Techniques or Concepts I Teach If You Do Not Have an Attorney and CPA on Your Team Your Gene Pool Needs a Life Guard. You Can Lose Money Investing in Notes Do Not Let High Yields Blind You to Risks Yields Are Not Realized Until YOU ARE PAID

We Are In a Crock Pot Economy Not A Micro Wave Who Moved My Cheese By Spencer Johnson We Must Move with the Cheese Getting Rich Slowly Utilizing the Time Value of Money Rule of 72

NOTE MYTHS

Myths Of Note Holders Probably the NUMBER ONE FALSE BELIEF IS: A $100, 000 Note Is the Same as $100, 000 Cash (a) $100, 000 Note paying $388. 45 @ 6% for 15 years. WHAT DO YOU HAVE? (b) You Have a PROMISE TO PAY $388. 45 a month for 180 Months Texas Lottery Example: � $4, 000 JACKPOT � $2. 5 Million Cash Value � What is Omitted Is the $4 Million is Paid Out over 25 Yrs � You Did Not Win $4 Million, But Rather Annual Payments of $160, 000 � A Promise to Pay by the State of Texas Has a 4% Yield; Perceived Small Risk How Much More Risk Is a Note Buyer Taking By Purchasing a “Promise to Pay” from an Individual When Selling a Note, Ask Yourself the Question: “Would I Rather Have a Lump Sum Now, or the Promise to Pay”

Note Myths Continued If You Foreclose, You Will Immediately, Effortlessly, and At No Cost Get the House Back in Pristine Condition and It Will Be Worth More Than When Sold � Normal Wear and Tear � Vandalism Costs That Affect Yield � Cost of Foreclosure � Holding Costs � Repairs � Closing Costs � Bankruptcy (This Delays Foreclosure) � TIME AND FRUSTRATION!!! � To Whom Will You Sell � Dodd Frank You Purchase a $100, 000 Note for $80, 000 Note to Receive a 10% Yield. You Have to Foreclose: � Foreclosure Cost � You Find the Property is Now Worth Only $75, 000 � There are $12, 000 of Repairs Needed to Get House in Market Condition � NO BUYERS!!!! What Is Your Yield? YIELD IS NOT REALIZED UNTIL YOU ARE PAID OFF

MYTH OF NOTE BUYERS Why Are Notes Discounted? Time Value of Money? NO!!!!! Which Would You Rather Have: $10 Now or $10 in a Year? Well Duh? � The Better Question To Ask Is: Which Would You Rather Have: $10 Now or $1 a Month for 12 Months? Forgot to Mention: The Payor of the $1 a Month Is A Very Popular Person Who Is Presently Aggressively Being Sought by Thee Companies: The Phone Co. , Cable Co. and Gas Co. And By The Way, If the Payor Does Not Make His/Her Payments, You Can Be the Proud Owner Some Vacant Land On a Chemical Spill YIELD IS NOT REALIZED UNTIL PAYOFF

WHY ARE NOTE DISCOUNTED Continued Have Fun With Brokers Who Try to Explain the Reason for a Discount is Time Value of Money N 240 I/Yr 12 PV -100, 000 PMT 1101. 09 FV 0 N 240 I/Yr 9 PV -122, 380 PMT 1101. 09 FV 0 THREE LESSONS TO BE LEARNED: 1. NEVER PAY OVER PAR FOR A NOTE 2. DISCOUNTS ARE NOT BECAUSE OF TVM 3. ALWAYS GET THE NOTE BEFORE THE QUOTE IF NOT TVM; THEN WHY ARE NOTES DISCOUNTED? BECAUSE OF THE RISKS A NOTE BUYER INCURS

RISK and Risk Management

Risks and Solutions Interest Rate Risk �Relax. You Will Be Receiving a Cash Flow at Above Average Yield When Others Are In Chaos �Buying Partials or Tweaking The Note Will Keep Up with Inflation �Higher Interest Rates Lowers Property Price Which Offsets Interest Rate Collateral Deterioration and Devaluation Risk: � DOWN PAYMENT!!! � Inspect Property at Regular Intervals for Deterioration � Due Diligence Before You Purchase the Note � Partials Will Reduce Your Exposure (Partial to Partials) Repayment Risk (Credit Risk): � Obtain Credit Reports and/or a Loan Application RMLO � Make Sure the Payors Can Make the Payments RMLO � Collateral Is the Only Real Defense PARTIALS � DOWN PAYMENT!!!

Risks and Solutions Continued Liquidity Risk: � Do Not Buy Notes with Money “For a Rainy Day” � If You Bought Right, You Can Sell Right PARTIALS � Trade Notes in for Real Estate and Other Property � Hypothecate � Use OPM Risk-Adjusted Discount Rate: � Subjective � “Safe Risk” Treasury Bill, CDs, Money Markets PARTIALS � Knowing How to Use the Calculator One Added Risk That I Know of No Solution: Politicians Changing The Rules Did You Notice Partials Was a Solution to Limit Risks?

LTV vs. ITV How Much Is a Note Worth?

LTV vs ITV Minimizing Risk LTV: Loan to Value Ratio of loan to the value of the property What does LTV Tell You: A. How Much Skin in Game of the Payor B. How Much Equity the Payor Has Invested C. How Much the Payor Has at Risk $100, 000 House with $5, 000 Down What is the LTV? Who Is Taking the Risk? The Borrower or Lender? $100, 000 House with $5, 000 Down and 10 Year’s Seasoning Loan Paid Down to $83, 000. What is the LTV? Who Is Taking the Risk Now? ITV: Investment to Value Amount Invested in the Note Divided by the “AS IS” Value of the Property ITV Different from LTV: What Did LTV Tell Us? ITV Is an Effective Method to Minimize Risk Collateral and Credit Risk Solution (Tie ITV with Credit Scores, Down Payment and Property)

Yield vs ITV Case Study: A house sells for $100, 000 with 5% down. Terms are 8% for 360 months. Payments are $697. 08 monthly. Credit score is 620. You Want AT LEAST a 11% Yield and a MINIMUM 65% ITV Because of Low Down and Low Credit. How Much Would You Pay to Receive a 11% Yield? N 360 I/YR 11 PV PMT FV -73, 197. 44 697. 08 0 How Much Would You Pay to Receive a 65% ITV 65% of $100, 000 = $65, 000 How Did Paying $65, 000 Affect Your Yield? N 360 I/YR 12. 57 PV -65, 000 PMT 697. 08 FV 0 Investor Will Pay the Lesser of Desired Yield or ITV How Partials Can Solve Deep Discount to Seller And Still Allow Investor Obtain Yield and ITV

Maintain Yields and Reducing Risks with Partials Getting Sellers a Large Lump Sum Recap: A house sells for $100, 000 with 5% down. Terms are 8% for 360 months. Payments are $697. 08 monthly. Credit score is 620. You Want AT LEAST a 11% Yield and a MINIMUM 65% ITV Because of Low Down and Low Credit AT 11% Yield You Would Pay $ 73, 197 At 65% ITV You Would Pay $65, 000 Partial Alternative: Offer to Purchase 120 Payments for Your Desired Yield N I/YR 120 11 PV -50, 604 PMT FV 697. 08 0 WOW! Only $14, 396 Less Than The Full Offer The Note Seller Will Have a Balance of $83, 338 What Is Your ITV? WIN/WIN

TWEAKING VARIABLES INCREASE YOUR YIELD BY LOWERING THE INTEREST Page 14 of Note Professor Notebook PLUS THE NUMBER ONE WEALTH CREATION TOOL FOR A NOTE BUYER 22

INCREASE YOUR YIELD BY LOWERING THE INTEREST Applying Concepts of Time Value of Money The Variables Are Interrelated Changing One Variable Affects Another Variable Case Study: Let's say you were offered a note with a balance of $10, 000 @ 7% payable monthly for 10 years with payments of $116. 11. Here is what it looks like. N 120 I/Yr 7 PV -10, 000 Pmt 116. 11 FV 0 You offer to purchase this note for a price of $6, 000. What does your position look like? N 120 I/Yr 20. 04 PV -6, 000 Pmt 116. 11 FV 0 Not bad at all. By changing PV, we will enjoy a Whopping 20% yield. Can we improve on this by tweaking some other variables? 23

INCREASE YOUR YIELD BY LOWERING THE INTEREST Tweaking Two Variables “The Sooner the Better” and “The More the Merrier” Lower the Interest and Raise the Payments Remember How Our Deal Looked When We Purchased the $10, 000 Note for $6, 000: N 120 I/Yr 20. 04 PV -6, 000 Pmt 116. 11 FV 0 Now we go to the payor and offer to cut the interest rate in half, if he will double his payments. Remember, from the payor’s view, he still owes $10, 000 even though we paid only $6, 000. Watch what happens!!! N 46. 08 I/Yr 3. 5 PV -10, 000 Pmt 232. 22 FV 0 We Changed the value of the payment and the interest. Notice what this did to the number of payments. 24

INCREASE YOUR YIELD BY LOWERING THE INTEREST TWEAKING BOTH PMT AND I/Yr Note The Relationship Between PMT, I/Yr, and N N 46. 08 I/Yr 33. 28 PV -6, 000 Pmt 232. 22 FV 0 WOW!!! Over 33% Are You Beginning to See How Tweaking Variables Will Give You “Obscene Yield” Many Will ask, “But Why Would the Payor Do This”? Let’s Look!! Multiply $116. 11 times 120 payments (Original Position of Payor) $13, 946. 40 Multiply $232. 22 times 46. 08 payments (Modified Note) $10, 700. 70 $3, 245. 70 Win/Win: Payor Saves $3, 245. 70 Pays Off Loan In 46 Months How I Turned This Note into a 75% Yield!!!!!! NUMBER ONE METHOD OF WEALTH CREATION 25

NUMBER ONE WEALTH CREATION TOOL for NOTE BUYERS SUMMARY: N 46. 08 I/Yr 33. 28 PV -6, 000 Pmt 232. 11 FV 0 • Investors • Relatives (Deadbeat Brother-in Law) Offer To Sell Half the Payments for a 12% Yield N 46. 08 I/Yr 12 PV -4, 270. 19 Pmt 116. 11 FV 0 You Are Going to Love Your Position!!!!! When you subtract $4, 270. 19 from $6, 000, You have Only $1, 729. 21 Invested N 46. 08 I/Yr PV Pmt 75. 84 -1, 789. 21 116. 11 BINGO!!!! HOME RUN!!! FV 0 THIS IS THE MOST POWERFUL TOOL I KNOW FOR A NOTE BUYER!! WIN/WIN THE SIMPLICITY IS OVERWHELMING 26

Partial to Partials PAGE 47 OF THE NOTE PROFESSOR NOTEBOOK

How Partials Work � Note Seller Needs Lump Sum Cash � Note Seller Does Not Want Deep Discount � Note Buyer Wants to Limit Risk � Sell Part of the Note � At The End of Contract, Note Reverts to Seller Ways of Buying Partials Buy Certain Amount of Payments Buy Payments and Balloon Buy Payments and NOT the Balloon Buy Payments and Part of the Balloon Buy Balloon and Not Payments Buy a Percentage of The Payments USEFUL TOOL TO GET NOTE SELLERS THEIR CASH WHILE LIMITING EXPOSURE TO NOTE BUYER INCREASES THE NOTE BUYER’S YIELD 28

Partial to Partials Page 47 of Note Professor Notebook Partials Solve Problems: Note Seller Gets Cash; Note Buyer Gets Yield Plus Security Case Study: Nick and Nora Noteholder took back a note three years ago for $75, 000 @ 8% interest for 30 years, with monthly payments of $550. 32. They are in immediate need for $15, 000 to pay medical bills. They have tried to sell their note in the market place. They have been receiving offers of around $36, 000 to purchase their entire note. Although they do need $15, 000 immediately, they are asking you if you can beat the large discount offers. The going rate for purchasing discounted notes is 18%. Can you offer them a solution and still achieve your 18% yield? After reading this, you can. Let's look at the problem, and then the solution. Identify the Variables N 324 I/Yr PV 8 PM -72, 960. 11 FV 550. 32 0 What Is the Market Price for This Note? N 324 I/Yr 18 PV -36, 393. 43 PMT 550. 32 FV 0 As you can see, Nick and Nora were being offered market value for their note. Can You Still Give Them the Cash They Want and Still Receive 18%? THINK!!!!!

Partial to Partials Continued Solution: Simple…. You purchase enough payments to give the Noteholders their $15, 000, and give you an 18% yield. N 35. 31 I/YR 18 PV -15, 000 PMT 550. 32 FV 0 At this point, you have a decision to make. Because N came out in a fraction, you could buy 36 payments, and still give the Noteholders $15, 000 for their note. This would increase your yield to 19. 06%. (Did you notice what a slight increase in N did to your yield? Another lesson in the relationship of variables) Your second choice is to be happy with the 18% yield. When you buy 36 payments the PV would rise to $15, 222. 32. (Did you notice what the slight increase in N did to PV, if we left the yield at 18%? ) I would prefer this alternative, because you are giving the Noteholders more than what they asked, while receiving everything you wanted. This not only makes good relationships that makes the deal go through on a happy note, (pun intended) but also will result in referrals. This also sets you up to buy FUTURE PAYMENTS. PIGS GET FAT; HOGS GET SLAUGHTERED

Partial to Partials Note Holder’s Position This sounds great. However, what position does this leave the Noteholders? Good question. At the end of the three years, the note will revert to the Noteholder. When Nick and Nora get their note back, it will look like this: N 288 I/Yr 8 PV -$70, 369 PMT 550. 32 FV 0 Nick and Nora would receive their $15, 000. For the next 3 years, the payments will come to you. At the end of three years, the note would revert to Nick and Nora with a balance of $70, 368. 97. With the original balance of $72, 960. 11, plus the $15, 000 cash they received, it appears there was no discount. How is this possible? It is one of the wonders of compound interest and the time value of money. How much was the discount? N 36 We Paid I/Yr 8 PV -17, 562 PMT 550. 32 FV 0 $15, 222 SMALL DISCOUNT PLUS 18% YIELD WIN/WIN SMALL DISCOUNT CAUSED LARGE YIELD INCREASE WHERE IS THAT DBBL Now You Know Why I Am Partial to Partials

Ten for Twelve Technique The Perpetual Partial© 32

TEN FOR TWELVE TECHNIQUE THE PERPETUAL PARTIAL™ Relationship Between The Variables When N Is Small, A Slight Discount with Increase Yield “Obscenely” Often Note Holders Will Need Only a Small Amount of Cash, Do Not Want to Sell Their Entire Note for A Large Discount • They Will Gladly Exchange Twelve Payments For The Price of Ten A PERFECT SENARIO FOR THE PERPETUAL PARTIAL CASE STUDY: Nick and Nora Noteholder Need $10, 000 to Pay Their Bookie Because They Bet on Hillary to Win the Election. They Have a Note that pays $1, 000 Monthly. What Can You Offer Them? • SOLUTION: Offer Nick and Nora $10, 000 (Ten Payments) For The Right To Receive the Next Twelve Payments!!! 33

TEN FOR TWELVE TECHNIQUE THE PERPETUAL PARTIAL™ � Recap: Nick and Nora Noteholder Need $10, 000 for Gambling Debts � They Have a Note That Pays $1, 000 Monthly (Notice I Did Not Mention the Balance. Makes No Difference) � You Offer to Purchase Ten Months of Payments for the Right To Receive Twelve Payments. WHAT IS YOUR YIELD? N 12 I/Yr 35. 07 PV -10, 000 Pmt 1, 000 FV 0 No Matter What the Monthly Payment or The Interest Rate, The Yield Will Always Be 35. 07% Now You Know Why It Is Called the Ten for Twelve Technique Why The High Yield with Only a $2, 000 Discount? Why Do I Call It THE PERPETUAL PARTIAL™? In The 10 th Month, I Go To The Noteholders and ask, “Do You Want To Do It Again”? CAVEAT: Check with an attorney to make sure this cannot be construed as a loan 34

Ten for Twelve Technique The Perpetual Partial ™ Page 63 in THE NOTE PROFESSOR NOTEBOOK Recap N 12 I/YR 35. 07 PV -10, 000 PMT 1, 000 FV 0 But Tom, I Do Not Have $10, 000 Where Is That Dead Beat Brother in Law N 12 I/YR 9 PV -10, 000 PMT 874. 51 FV 0 Is $125. 49 A Month With No Money Out of Pocket Good Enough? What Is Your Yield? Lazy 8 ∞ Be Careful This Is Not Considered A Loan Always Check with An Attorney and CPA!!!

Double, Triple and Even Quadruple The Yield From Page 51 of THE NOTE PROFESSOR NOTEBOOK Split Funding

High Yields Buying Part of the Payments Page 55 of THE NOTE PROFSSER NOTEBOOK

You Can Also Realize High Yields by Buying Part of the Payment Scenario: Ole, Nick and Nora Noteholder are again in need of $20, 000 cash. (I think they go to Vegas frequently) They have a note with a $75, 000 balance @ 10 % with 240 months remaining. The payments are $723. 77 monthly. They have come to depend on these payments, and need half of the payments to make ends meet. You want to realize a yield of 18%. What can you offer them? Why Not Let Nick and Nora Keep Half the Payments All We Do Is Identify the Variables; Solve for N N 118. 62 I/YR 18 PV -20, 000 PMT 361. 88 FV 0 All Problems Solved � Note Buyers Realizes 18% Yield � Round N to 120 and Increase Yield to 18. 12 � Note Seller Receive Lump Sum Cash + Cash Flow Where Is that DDBL? 13% Yield? Commission of $4, 236. 70

Balloon Payments

FREE NOTES FOR YOUR RETIREMENT Or Keep the Tail End of the Note Page 74 of THE NOTE PROFESSOR NOTEBOOK

WHO GETS WHAT IN THE EVENT OF EARLY PAYOFF or DEFAULT

Who Gets What Early Payoff or Default � When Purchasing Partials You Must Address the Possibility of Early Payoff or Default � We Will Discuss the ONLY the “Number Crunching” � Three Methods of Determining Payoff to Investor and Note Seller 1. Schedule B 2. Schedule C 3. Schedule D A Program like TValue Is Necessary to Provide the Note Seller All The Possible “What Ifs”. Example: A Note Seller has taken back a note for $100, 000 at 5% for 30 years with monthly payments of $536. 82, but needs $20, 000 immediately. A Note Investor desires a 12% yield, and has agreed to purchase 5 years of payments. Let’s further assume that after 36 payments the payors sold the property and the note will be paid off. The big question is who gets what? SCHEDULE B WILL ALERT THE NOTE SELLER TO THE AMOUNT OF DISCOUNT

Who Gets What In Early Payoff SCHEDULE B vs SCHEDULE C Purchase 5 Years of Payments to Receive 12% Note Is $100, 000 at 5% for 360 Months; $536. 82 PMT Schedule A is the Payor’s Schedule: Used In All Three Methods SCHEDULE A PAYOR’S SCHEDULE N I/YR PV PMT 360 5 -100, 000 536. 82 FV 0 NOTE INVESTOR’S SCHEDULE or SCHEDULE B N I/YR PV PMT FV 60 5 -28, 447 536. 82 0 The PV Is Referred to as NET SUM in Contract NOTE INVESTOR’S BASIS or SCHEDULE C N I/YR PV PMT FV 60 12 -24, 133 536. 82 0 This Is Purchase Price of the Partial for a 12% Yield Schedule D Will Be Discussed Later Three Years Pass and Your Note Is Paid Off Who Gets What?

Early Payoff Schedule B Three Years Later: Note Is Paid Off Schedule A N 324 Schedule B N 24 I/YR 5 PV -95, 344 PMT 536. 82 FV 0 Note Investor’s Payoff I/YR 5 PV -12, 236 PMT 536. 82 Payor’s Payoff (Schedule A) Investor’s Payoff (Schedule B) Note Seller’s Payoff FV 0 $95, 344 -$12, 236 $83, 108 Notice How Early Payoff Affected Yield N 36 I/YR 13. 21 PV -24, 133 PMT 536. 82 FV 12, 236 The Preferred Method of Most Funders TVALUE MAKES THE CALCULATIONS MUCH EASIER

Early Payoff Schedule C Schedule A N 324 I/YR 5 PV -95, 344 PMT 536. 82 FV 0 I/YR 12 PV -11, 404 PMT 536. 82 FV 0 Schedule C N 36 Yield Is Maintained at 12% Check It Out Payor’s Payoff (Schedule A) Investor’s Payoff (Schedule C) Note Seller’s Payoff $95, 344 -$11, 404 $83, 940 Payoff of Schedule B To Note Buyer $12, 236 -$11, 404 Payoff of Schedule C To Note Buyer Difference $ 832 Why Would a Note Investor Use Schedule C? A. Beat Competition (Satisfied with Yield) B. “Obscene” Discount

SCHEDULE D vs SCHEDULE B and SCHEDULE C Schedule D � Note Investor Takes the Position That He/She Has Bought the Right to Receive 60 Payments � If There Are 24 Remaining Payments, Note Investor Should Receive 24 Times the Payment Amount This Example: $536. 82 X 24 = $12, 884 to Note Investor Compare with Schedule B and Schedule C Schedule B = $12, 236 Schedule C = $11, 404 In This Example the Difference Is Negligible What If You Bought 120 Payments: Paid off in 3 Years 120 -36 = 84 Remaining Payments 84 X $536. 82 = $45, 093 Schedule B = $37, 911 Note Seller Is NOT a HAPPY CAMPER When to Use Schedule D? Ten for Twelve Technique

BUYING THE TAIL END OF A NOTE

Buying “Tail” End of Notes Note Buyer Purchased 72 Payments of a Note for 12. 5% That Had Payments of $2, 097. 64 N 72 I/YR 12. 5 PV -105, 882 PMT 2097. 64 FV 0 Two Years Have Passed. Note Sellers Have Been To Vegas Again and Need Additional Cash Immediately. They Want to Sell 72 More Payments. YOU MUST PREPARE THEM FOR STICKER SHOCK THEY ARE NOT GOING TO GET $105, 882 �Why? Because The Amount Being Purchased Will Not Be Realized Until 48 Months in The Future �Payment In the Future Are Worth Much Less Than Payments Due Immediately How Will You Calculate?

Buying the Tail End of a Note Calculations Original Purchase N 72 I/YR 12. 5 PV -105, 882 PMT 2097. 64 FV 0 To Determine 72 Payments Due In The Future There Are Two Calculations to Perform: Calculate the PV of 72 Payments at the Desired Yield. Assume a 12. 5% Yield and the PV is $105, 882 Since $105, 882 Is Due in 48 Months It Is a FV Next We Determine PV of $105, 882 Due in 48 Months N 48 I/YR 12. 5 PV -64, 387 PMT 0 As Broker or Buyer or Seller This Is a Common Scenario You Must Address It Up Front Tvalue Does These Calculations Instantly FV 105, 882

Advanced Technique #1 Buy With Cash Sell With Paper

Buy With Cash Paper Out (Keep the Note) �Case Study One of My Student’s Purchased a House for $20, 000. Had an ARV of $60, 000. Sold Property AS IS for $40, 000 with $8, 000 Down. Carried a Note for 60 months @ 9%. Payments of $664. 27 Is this a Good Deal? IRR = 57. 84% Tom, There You Go Again I Don’t Have $20, 000 Where Is That DBBL?

Paper Out Nothing Down Twist Recap: Purchase House for $20, 000 Cash. Sell for $40, 000 with $8, 000 down; $32, 000 note for 60 months with payments of $664. 27 Find an Investor to Fund the Deal for Half the Payments Why Would an Investor Do This? 20. 74% IRR DDBL Puts Up the $20, 000 Cash Within 30 Days Gets the $8, 000 Down Payment In 60 Days DDBL Starts Receiving $332. 14 For 60 Months In 60 Days YOU Start Receiving $332. 13 For 60 Months What Is Your Yield? Lazy 8

20 Wealth Building Techniques Using Notes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Buy With Cash; Sell with Paper; Sell a Partial Buy With Paper; Sell with Wrap or Second Create a Note on Existing Property Trade Existing Note at Face Value (For Anything) Trade Note at a Discount Buy a Note at Discount; Trade at Face Value Refinance, Sell or Hold Build in a Discount or First Right of Refusal Discount Your Own Note Before Selling or Refi De-Finance (Walk the Loan) then Sell or Refi Sell with Paper and Sell Entire Note Make Change Hypothecate Trade Good Paper at Face for NPN at a Discount Blanket Mortgages Bust Balloons Compensating Cash Flows Partner with Seller (Nothing Down) Sweetner Plus Paper; Then Buy or Exchange Refi; Then Sell with Wrap or Second The Options for Note Techniques is Endless. Did I Mention Options. Do You Know How Many Options Techniques There Are Using Notes?

Conclusion: Make Contact with ALL the Funders Make Contact with ALL Vendors Make Contact with EACH OTHER Continue Your Education Evaluate Risks vs. Reward Partials Minimize Risks Learn Note Techniques to Buy and Sell Property Find Your Investors and DBBL (They Are Here) Extra Bonus to Paper Source Symposium Attendees NO BOOT CAMPS TO SELL!!! APPLAUSE!!! ENJOY THE SYMPOSIUM