Make Money Trading Mortgages (E-Book)
by Delbert M. Ashby
Includes 14 Field-Tested Contracts, Forms & Sample Letters!
“This is the place to start if you want to learn how cash flow notes are bought and sold. For brokers and investors alike.”
–– W. J. Mencarow, Editor, THE PAPER SOURCE JOURNAL
What’s Inside?
INTRODUCTION
Each of us has twenty-four hours a day and the right of self-determination. Yet, in terms of earthly possessions, only a few excel to the extent of having more than we will ever need. That should give each of us cause to wonder why. Why not me? Does the other person know something that I don’t?
Yes, he does.
There exists a private market, a private network of people with knowledge and connections, who somehow achieve what the average person does not. Do they work harder? Are they inherently smarter? Do they aspire for more? What makes the difference, anyway?
What you are about to learn is not new. I learned about it in 1959 and it had been around almost as long as time even then. At that time, I didn’t believe it. I thought it was too good to be true. If only I had pursued it then, time would have worked wonders.
Even now, only a few people will come to understand and take advantage of this knowledge, act on it and make something happen for themselves and those they care about.
I hope that you will be one of them.
Del Ashby
ORDER NOW! MAKE MONEY TRADING MORTGAGES $19.97 (E-book)
Not available as a bound book, but a copy shop can print and bind it for you for about $10.00-$15.00
Includes:
HUD-approved Promissory Note Form
HUD-approved Deed of Trust Form
HUD-approved Settlement Statement (HUD-1)
Simple Note Purchase Agreement
Promissory Note and Note Purchase Agreement with Warranties
Partial Assignment of Mortgage Agreement
Whole Assignment of Mortgage Agreement
Documentation Requirements List
Preliminary Pricing Information Sheet
Mortgage Evaluation Worksheet
Sample Estoppel Letter
Insurance Notification Letter
Senior Lender Notification and Request Letter
Notification Letter to Mortgage Payor
More of what’s inside…
CHAPTER 1
HIGH-YIELD MORTGAGE INVESTING
Welcome to the world of high-yield mortgage investing. Never again will you want to accept the paltry returns available from banks and other lending institutions. Once you understand this investment, you will realize that a high return on your investment does not necessarily mean high risk. If you know what you are doing and use common sense, you will find that mortgage investments can be safer than government bonds. In this book, you will discover how this amazing investment works and why you should never accept less than a double-digit return on your money…and you can often earn much more.
You will also discover that you can create a business of buying and reselling mortgages that can be very lucrative. It can be run on a full- or part-time basis. There are many other creative approaches to using these investment vehicles, as you are about to learn.
The Basic Concept
If you owned a house which you rented to tenants at $1,000 per month and that house had cost you $100,000 to purchase, what would your return on your investment be? You would have $12,000 per year income on a $100,000 investment. That is a return of 12%. Suppose you were to find an identical house for sale in a situation where the seller was desperate to sell and you were able to buy it for $50,000.
Since you bought it for half price, would you rent it for half the normal rent? Of course not. You would still get your $12,000 per year rental income. With only one half as much invested, what would your return be? Twice as much as on your first house? Exactly. Think carefully about this concept. Simply put, when we invest in something that produces income, the less we pay for it, the better our return, as long as the income stays the same.
In Real Life
In real life, if you bought either house, where would most of your rental income go? Would it not go to pay the bank for the mortgage loan you took out to buy the house in the first place? The bank gets the money while you put up with the tenants, fix the toilets, and put up with all the other problems of property ownership. Wouldn’t you rather be the bank? That’s what the private mortgage business is all about. You become the bank.
You don’t have the money, you say? Where does the bank get the money it loans you to buy that rental house? Doesn’t the bank borrow it from you and their other customers by way of savings and checking accounts? And what about the money you loan them through those high return CD’s? Do they make a profit on your money? Couldn’t we buy mortgages with borrowed money? You bet we can, and we do. You can too.
What happens if you don’t make the mortgage payments on the house you bought with the money you borrowed from the bank? They will take it away from you, won’t they? Could we play by the same rules in protecting our investment? Absolutely. And, by the way, do you think the bank ever makes a profit on the house after they take it back in foreclosure? Could we? You know the answer to that.
If the banker has to foreclose, does he do that personally? Of course not. He uses an attorney just as you would do. And who pays for the foreclosure? Doesn’t it come out of the proceeds of the sale of the foreclosed house? That good old banker never gets his hands dirty, and you don’t have to either.
How We Become the Bank
When a person buys a house or other real estate, we ordinarily think of that person going down to the local bank or mortgage company to take out a loan, commonly referred to as a mortgage loan. When the ownership of the property is transferred to him, the previous owner gets his money from the loan proceeds, and the proud new homeowner gets to make payments on the mortgage loan for the next thirty years.
There are times when properties are sold using private loanmoney rather than a bank being involved. It is in these circumstances that we can become the bank and make money from the transaction…
Table Of Contents
INTRODUCTION
CHAPTER 1
- HIGH YIELD MORTGAGE INVESTING 10
- The Basic Concept 10
- In Real Life 11
- How We Become the Bank 12
- Here Is How it Works 12
- That’s Where We Come In 13
- Here is How You Make Money 13
- Why Isn’t Everybody Doing It? 14
CHAPTER 2
- THE NATURE OF A MORTGAGE 15
- Security Instruments 15
- The Investment Process 16
CHAPTER 3
- SAFETY ISSUES 17
- Basic Rules 17
- Protective Measures 18
- He Forged Her Signature 19
- We Will Have An Appraisal 20
- Ordering a Credit Report 20
- Safety of Loan Documents 21
- Make Sure the Paperwork is Done Right 22
- In Summary 23
CHAPTER 4
- FINDING THE NOTES 24
- Private Financing 24
- A More Direct Approach 25
- Real Estate Sales People 26
- Research Companies 26
- Advertising 26
- Contacting the Noteholders 27
CHAPTER 5
- NEGOTIATING THE PURCHASE 28
- The Average Note Seller 28
- Alternative Approaches 29
- Discover the Note Seller’s Need and Satisfy It 30
CHAPTER 6
- PRICING THE NOTE 31
- The Cash Flow Stream 31
- Lump Sum Cash 32
- A Combination of Both 32
- Assessing the Note for Pricing 33
CHAPTER 7
- GETTING THE AGREEMENT 34
- After You Have the Agreement 34
- What Will We Do With the Note 35
CHAPTER 8
- THE DOCUMENTATION PROCEDURE 36
- The Three Initial Documents 36
- The Next Set of Documents 38
- The Appraisal 39
- Senior Debt Instrument 40
- Senior Loan Status Verification 40
- Estoppel Affadavit 40
- Commercial Property 41
- In Summary 41
CHAPTER 9
- CLOSING THE TRANSACTION 42
- If You Plan to Keep the Note 42
- Settlement 44
- Post-Settlement 45
- Settlement Process for Note Resales 45
- Post-Settlement for Resales 46
CHAPTER 10
- THE INCREDIBLE POTENTIAL 47
- Using Borrowed Money 47
- Using Your Own Money 47
CHAPTER 11
- THE FINANCIAL CALCULATOR 50
CHAPTER 12
- ADVANCED PRICING STRATEGIES 52
- The Builder’s House 52
- It is a Word Problem 53
- The Periodic Payment 54
- The Lump Sum Payment 56
- If We Buy the Entire Note 57
- Let’s Think Creative 58
CHAPTER 13
- THE BIGGER PICTURE 60
- The Time Value of Money 60
- International and Other Notes 61
- Now You Know 62
- The Process in Review 64
APPENDIX A 67
- USING THE FINANCIAL CALCULATOR 67
- APPENDIX B 79
- CASE HISTORIES 79
- APPENDIX C 83
- ANSWER KEY 83
- APPENDIX D 87
- SAMPLE DOCUMENTS 87
- GLOSSARY 114
- AFTERWORD
ORDER NOW! MAKE MONEY TRADING MORTGAGES E-book. $19.97
Not available as a bound book, but a copy shop can print and bind it for you
for about $10.00-$15.00
NOTICE: The Paper Source, Inc. is the copyright holder in partnership with the author for this digital product. Therefore, the download file is an authorized version for sale and distribution. You are purchasing this digital product for individual use only. You are prohibited from distributing this document in any manner, including electronically, under the Digital Millenium Copyright Act (PL 105-304, 112 Stat. 2860 [Oct. 28, 1998]).