If
Sally took the $14,900 it would mean that after the investor has
collected the next 24 payments from Bud Buyer the note would revert
back to Sally Seller and she would start collecting the payments
from Bud Buyer again. The note at that time would be down to $78,521.32.
Your
Offer To Sally
Once I give you the figures, all you would have to do is give Sally
Seller a call back.
Obviously,
you are looking to make some money for transacting this deal. Thus,
you will make an offer to buy Sally's note for LESS than the amount
I quote you.
Please
Note! The amount I quote you is the amount that my investors are
willing to pay for the mortgage note. How much less you quote your
seller is strictly up to you. In other words...
I
Let You Decide How Much Profit To Make On Each Deal !
The
seller of the note will never be upset with the transaction, because
they will never know how much you are making on the deal or how
much the investor is paying us for the note. They are ONLY interested
in how much CASH they can get for their note!
May
I suggest the minimum commission should start at $1,000 for each
of us. So you would take $2,000 off the quote I make to you.
For
example if I quote you $75,000 for a note, you would then offer
the seller $73,000, so we would have $2,000 to split.
Of
course you will offer the seller less if you want to make more money.
If you think the seller may not take the price you offer, simply
raise it a bit higher. If the seller says she wants $74,000, you
could come back with $73,500 so we would split $1,500. In most cases
the sellers will settle for less than what they told you.
Please
note that we are NOT trying to rip someone off here. We simply get
a commission for placing the seller's note with an investor. This
is exactly the same as a loan company getting points and loan originating
fees.
Say
the investor was willing to pay $75,000 for the whole mortgage note
or $14,900 for the next 24 payments. By talking to Sally Seller
you figure that she will sell the note for $70,000, which would
give us a profit of $5,000.
So
you make her an offer to buy her note for $70,000 cash, or to buy
the next 24 payments for $12,000 cash (a profit of $2,900).
If
Sally accepts the partial, it means that Sally gets $12,000 cash
now. The balance of her mortgage now is $79,555.30 and when it reverts
back to her in 2 years (after 24 additional payments) the balance
of the note will be $78,521.32.
Do
you see what that means? It means that Sally gave up $1,034 ($79,555
less $78,521) to get $12,000 now!
That's
a pretty good deal for everyone involved!
At
this point you have also explained to Sally that she can get $70,000
cash right now from you instead of having to wait 29 years to get
all the money back from Bud Buyer..
That's
it for now. Next I'll show you what happens when Sally decides to
sell her note for cash and accepts our offer and you get a check
for $2,500.