Note Investing 401 with Eddie Speed from NoteSchool
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The document outlines the fundamentals of investing in discounted notes, including non-performing and performing notes, and provides case studies demonstrating potential profits. It highlights a growing market for note buying, estimating over $8 billion in assets in the first half of 2015, along with investment strategies and examples. The author, Eddie Speed, invites readers to a workshop and offers resources for further learning.
Note Investing 401 with Eddie Speed from NoteSchool
- 1. NOTE INVESTING 401 W. Eddie Speed Founder of NoteSchool
- 2. Making Money from the Meltdown Stick around for a free download and a hard copy of my recently updated book:
- 3. Questions? Stay to the End!
- 4. What is a Discounted Note? 1,000 Eddie Speed P.O. Box 1234 South Lake, TX
- 5. John Eddie signs a note for $1,000 John Doe 1,000John receives $850 Check Cashing biz receives
- 6. $100,000 360 Monthly Payments at 10% interest Payments of: $878 Buyer TERMS OF AGREEMENT:
- 7. 2000 - 2007 2011 - 2014
- 8. 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
- 10. How Big is the Note Buying Industry? So far in just the first 6 months of 2015…… Over $8 Billion in Assets
- 11. WHY NOTES? The Surge of Growth Ahead!
- 12. Two Types of Discounted Notes Non- Performing Notes Performing Notes Seller Financed Re-performing Non-Performing
- 14. REO's vs. NOTES 300,000 REOs 9 Million Delinquent Real Estate Notes Inventory of Opportunity
- 15. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Defaulted Note Cost 20%-50% Non-Performing Notes
- 16. Buyer Defaulted Note? Modify Loan Deed In Lieu Foreclose Mortgage NOTE
- 17. REAL ESTATE
- 18. EstablishAs-ISValue Price Note Cost of Note What % ? Investment to Value Ratio
- 19. My Target For Defaulted Notes What % ? Investment to Value Ratio = 50% Investment to Value Ratio = 20% EstablishAs-ISValue
- 20. REONon-Performing Loans 80%-90% of Value 20%-50% of Value More Profit with Less Risk!
- 21. Ways to Invest with Colonial Individual Notes NON-PERFORMING NOTES NON-PERFORMING NOTE CASE STUDY
- 22. Case Study Example Property: Stone Mountain, GA Current Market Value: $100,000 FTC DISCLAIMER: While these case studies are REAL DEALS that my students have closed recently, these results are NOT typical. As with all courses, you should not expect to make this much money or any money with “how-to” advice.
- 23. NoteSchool “Student” Russ Brucks Fort Worth, TX Certified Note Investor Purchased 4 NPLs Within Two Months FTC DISCLAIMER: While these case studies are REAL DEALS that my students have closed recently, These results are NOT typical. As with all courses, you should not expect to make this much money or any money with “how-to” advice.
- 24. Paid $9,500 for Note • 4/2, 1,800 sq ft • $150K “Listing” Comps • Rent $1,250/mo Stone Mtn , GA “I didn’t need a calculator to pull the trigger on this one!” Total Cost approx $30,000 Property worth $100,000
- 25. Non-Performing Notes REO Property Foreclosure Note or Cash or Rental Stone Mtn , GA Modify Deed in Lieu
- 26. Own Note Without Having to Manage ItLoan Servicer • Collects Pmts • Taxes / Insurance • Borrower Work-out • Foreclosure Mgt Note Owner Work done by Who?? Borrower Delinquent on their Pmts
- 27. $50,000 Today 5yrs X $950/month Realtor’s BPO says Mid $60Ks But Sold for $100K (on terms)
- 28. Rented Out the Property Located a local Realtor in the town to find good tenants to pay $1,250/mo
- 29. Front-Loaded Rental Hired a Property Management Company +
- 30. Marketed to a Cash Buyers List With an intriguing offer: ½ Down, ½ Paid by Tenant BuyThis! $50KNow $50KLater An Out-of-State buyer from California bought the front-loaded rental
- 31. Rent $1,250.00 Taxes $100.00 Ins $81.43 Mgt Fee $125.00 Total Expense $306.43 Net Available for P&I $943.57 Terms of Sale Sales Price $100,000 Down $50,000 Note Amount Int Rate Pmt Term $50,000.44 5.00% $943.57 60
- 32. Property Cash Flows Monthly Jan 2014 Dec 2018 Cash Today 5 yrs of Monthly Pmts $50,000
- 33. Property Cash Flows Monthly Jan 2014 Dec 2018 Rental Income Debt Service Paid From Rent Income
- 34. Two Types of Discounted Notes Non- Performing Notes Performing Notes
- 35. 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% Performing Notes Re-Performing Note & Seller Financing Cost 70% - 90%
- 36. Bob Bryenton Asheville, NC Equity Trust Note Investor: #2
- 37. Property: Applegate, MI Current Market Value: $90,000 Case Study: #2 SFR – Owner Occupied 3BD/1BA, 2026 Sq Ft.
- 39. $30,930 129 Monthly Payments Mortgage Note At 9% interest Monthly Payments of: $375 $27,136 For This Note
- 40. 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
- 41. My note I own in my IRA acct W. Eddie Speed Founder of NoteSchool
- 42. Case Study Property: Memphis, TN Current Market Value: $220,000
- 43. Case Study Terms of Note $160,316 6% Interest Pmt / $1,081 271 Mos Remain Value$220,000 73% of Property Value Loan to Value ratio
- 44. Remaining Loan Balance Negotiated to purchase the note for $105,000 $160,316 @ 6% Pmt / $1,081 271 Mos Remain 271 pmts
- 45. First Mortgage Note $160,316 JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV Total payback $292,951 271 Times! 271 pmts
- 46. Remaining Loan Balance 271 pmts Negotiated Note for $105,000 $160,316 @ 6% Pmt / $1,081 271 Mos Remain Paid $104,900 143 pmts X $1,081 = $156,745 Sold Partial: 143 pmts
- 47. Partial Purchase Portion Sold $104,900 127 Mos Retained in my IRA account 143 Pmts 128 Pmts
- 48. Remaining Loan Balance 271 pmts Investor Pays $104,900 $160,316 @ 6% Pmt / $1,081 271 Mos Remain 143 pmts 128 pmts I Pay $100
- 49. 143 mos Loan Servicer Monthly Pmts Note Owner
- 50. Financial Deal Architect • Case Studies (from actual deals) • Building Cash Flows • Sourcing Capital • Creative Finance Gold in Notes One-Day Workshop
- 51. Gold in Notes One-Day Workshop Saturday June 20th Time: 9am – 4pm • Tuition $49 Hotel Info Here Address 1 Houston, TX Questions: Call toll free (888) 980-9239
- 52. Questions?
- 53. Go to: noteschool.com/free-book Eddie Speed eddie@noteschool.com 214-555-1212 REIAHOUSTON