Sjreia reia may 15

Profi%ng from America’s biggest Note Opportuni%es

BUYING REAL ESTATE NOTES The Ul%mate Investment Cash Flow

My Purpose!

Questions?

9:00 PM in the back of the room Stay to the End!

Making Money from the Meltdown

Stick around for a free download and a hard copy of my recently updated book:

Core Things Covered •  Understanding The

Discount Note Industry

•  Unprecedented Market Conditions

•  How Notes are Priced

•  Outsourcing the work!

Who Are We?

© Copyright CFG, LLC 2014. All Rights Reserved.

© Copyright CFG, LLC 2014. All Rights Reserved.

What is a Note?

What is a Discounted Note?

1,000

Eddie SpeedP.O. Box 1234South Lake, TX

John Eddie signs a note for $1,000

John Doe 1,000

Sells the Note

John receives

$850

Check Cashing biz

receives $1,000

at a discount

$100,000

360 Monthly Payments

at 10% interest

Payments of: $878

Buyer

TERMS OF AGREEMENT:

Buyer Seller

Mortgage Lender

STOCK MARKET YOUR MONEY

(ANXIOUS MONEY)

X Market Crash

September 29, 2008

$91 BILLION LOST OUT OF STOCK MARKET IN 2 DAYS

Where is it going?

2000 -‐ 2007 2011 -‐ 2014

Short Sales Completed, REO Inventories & Primary Market

Delinquent Notes

50,000.00

1,050,000.00

2,050,000.00

3,050,000.00

4,050,000.00

5,050,000.00

2008 2009 2010 2012 2014

NPL

REO

Short Sales

Source: Compiled information from Lawler, Calculated Risk, Realtytrac, Corelogic, Black Knight Financial Services

PART OF $1.01 BILLION VINTAGE DEBT PACKAGE

Feb. 13, 2015: "Three of the naUon's largest mortgage lenders have put sizable packages of nonperforming and reperforming mortgage loans … worth a combined $4.5 billion. Bank of America has put up approximately $2.56 billion worth of delinquent debt for sale… CiUgroup has put up $1.8 billion worth of reperforming mortgages for sale, and JPMorgan Chase is looking for a buyer for $143 million worth of nonperforming mortgage loans…"

PART OF $4.5 BILLION DEBT PACKAGE

Over $1 Billion in March: “This is something that we’re going to see on an ongoing basis for a

period of Ume”

MAJOR SHIFT FROM REO TO SELLING NOTES

REO’s NOTES REO’s NOTES

WHY NOTES? The Surge of Growth Ahead!

NOTES

Two Types of Discounted Notes

Non-Performing

Notes

Performing Notes

Seller Financed Re-performing

Non-Performing

What Determines Note’s Value?

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 100% 100%

100% 100% 100% 100%

100%

100% 100% 100%

100% 100%


0% 0% 0% 0%

0%

0% 0% 0%

0% 0%

Performing Notes

Re-‐Performing Note & Seller Financing

Cost 70% -‐ 90%

Defaulted Note

Cost 20%-‐50%

Non-Performing Notes


Non-Performing

Notes

Performing Notes

Paths to Property

REO's vs. NOTES

300,000 REOs

9 Million Delinquent Real Estate Notes

Inventory of Opportunity


0% 0% 0% 0%

0%

0% 0% 0%

0% 0%

Defaulted Note

Cost 20%-‐50%

Non-Performing Notes

Buyer

Defaulted Note? Modify Loan

Deed In Lieu

Foreclose

Mortgage NOTE

Non-‐Performing Notes

Modify Deed in Lieu

Foreclosure

©NoteSchool 2013

REAL ESTATE

Est

ablis

h A

s-IS

Val

ue

Price Note Cost of Note

What % ?

Investment to Value Ratio

My Target For Defaulted Notes

Investment to Value Ratio = 50%

Investment to Value Ratio = 20% Estab

lish A

s-IS

Value

REONon-Performing Loans80%-90% of Value

20%-50% of Value

More Profit with

Less Risk!

BUYERS BUY HOUSE

SIGN NOTE & MAKES PAYMENTS

PAYMENTS TO THE BANK

BUYER PAYS OFF MORTGAGE

If Not paid

PAYMENT DEFAULT

If Not paid

PAYMENT DEFAULT

BANK BUNDLES BAD MORTGAGES

Mortgage Information

HEDGE FUNDS CREATE TAPES

Mortgage Information

TAPES SENT TO INVESTORS

Agreed Upon Price

INVESTOR DUE DILIGENCE

SIGN CONTRACT WITH HEDGE FUND

New note owner

HEDGE FUNDS CREATE TAPES

New note owner

MODIFICATION = CASH FLOW

New note owner

4 EXIT & PROFIT STRATEGIES

Free Book: Making Money from the Meltdown

Text for an immediate download and you will receive a hard copy by mail.

Text (817) 402-‐2410 Code: IMN415

Or go to www.NoteSchool.com/gift


Non-Performing

Notes

Performing Notes

What Determines Note’s Value?


100% 100% 100% 100%

100%

100% 100% 100%

100% 100%

Performing Notes

Re-‐Performing Note & Seller Financing

Cost 70% -‐ 90%

Bob Bryenton Asheville, NC

Case Study

Property:

Applegate, MI Current Market Value:

$90,000

Equity Trust Case Study: #2

SFR – Owner Occupied 3BD/1BA, 2026 Sq Ft.

Valu

e $9

0,00

0 Relevant Property Details

$30,930

129 Remaining Payments

Mortgage Note

At 9% interest

Monthly Payments of:

$375

$27,136 For This Note

Mortgage Note

$30,930 @ 9% Interest Pmt / $375

129 Mos Remain

JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV

$48,375

129 Times!

12% Yield TAX FREE

$27,136

Own Note Without Having to Manage It

Loan Servicer •  Collects Pmts

• Taxes / Insurance •  Licensed & Compliant

•  Borrower Work-out

Work done by Who??

271 Months

Term of Note

Loan Servicer Monthly Pmts Note Owner


Payment

How to Retire Tax Free Forever

TAX FREE!

AFTER TAX

$110

,000

Sal

e Terms of Sale

$110K Sales Price - $10K Down Pmt - $100K Seller 1st Lien

$100,000


Mortgage Note

at 10% interest


$878

You Pay

$70,000 For This Note

Mortgage Note

$100,000 @ 10% Interest Pmt / $878

360 Mos Remain


$316,080

360 Times!

14.8% Return

You Pay

$70,000

100,000 @ 10% Pmt / $878 30 year term

Loan Amortized

Jan 2014 Dec 2044 360 pmts

$30,000 Note bought at discount

Yield = 14.8% annually

Roth Buys Entire Note for $70,000

$70,000


Hard Money Loan


$878

What is the interest rate for this Note?

14.8%

Partials are Like Pizza Pies

$6

Partials are Like Pizza Pies

$2

$2

$2

360 pmts

Note Term Bought or Sold

360 pmts

front part last part

100,000 @ 10% Pmt / $878 30 year term

Loan Amortized

Jan 2014 Dec 2044 360 pmts

TIMELINE

Roth “Flips” Front End to Another Investor

Roth Acct owns “back” Pmts

Roth Buys Entire Term

Sell Partial & Own Back-End of Note

$69,900 132 Pmts

Sold to Investor

TIMELINE

$100 in Roth Acct You Keep

Remaining 228 Pmts

100,000 @ 10% Pmt / $878 30 year term

10% Return HUGE Return

THE NEXT STEP Buy Notes, Be The Bank

What it Takes to Buy

0

2

4

6

8

10

12

Minimum Standard

Knowledge Interest Time

2 Advanced

Note Classes

Tuition $2,000

3-Day Live Class

Family or Biz

Partner FREE

On-Demand Training Course

14 Modules (3 days worth of training)

Learn easily At your own pace

3-day Live Class

Case Studies of Authentic Deals

Each class has 10 + Events Annually

Las Vegas, NV: May 15th – 17th

Irving, TX: June 5th – 7th

Charloqe, NC: May 22nd – 24th

San Francisco, CA: May 29th – 31st Atlanta, GA June 26th – 28th

2015: Classes held every 2-‐3 weeks

Gold in Notes One-Day Workshop

Gold in Notes One-Day Workshop

Saturday May 9th Time: 9am – 4pm

•  Members: – $89

•  Non-Members: – $99

Financial Deal Architect

•  Case Studies (from actual deals)

•  Building Cash Flows

•  Sourcing Capital

•  Creative Finance

Your IRA Buying Performing Notes

•  Building retirement acct as your own mini-bank

•  Phenomenal leveraging techniques with notes

Questions?

9:00 PM in the back of the room Stay to the End!

Business

Sjreia reia may 15