Profit-Lesson
#6:
"You
Get A Check For $2,500!"
By
Teddy Hanson
In the last lesson we left off where you offered to buy Sally's
whole note for $70,000 cash, or just the next 24 payments for $12,000
cash.
Now
let's continue and I'll show you what happens when Sally decides
to take a lump sum of cash and how you get your finders fee for
helping her!
Here
goes...
Profit-Lesson
#6:
"You Get A Check For $2,500!"
Sally
Wants To Sell
Sally decides, "All right I'll sell it for $70,000 if I can get
the cash now, because I need the money right now and I don't want
to wait 29 year to get all my money back". She figures she would
rather have $70,000 right now than to wait all those years to get
her money.
Because
of the "time value of money", a dollar today is worth a whole lot
more than it will be worth in 29 years!
After
all, if I owed you $20 but I didn't have to pay you back for 3 years,
but I gave you the choice of getting your $20 back in 3 years or
getting $15 right now. Which one would you take?
You
would probably take the $15 right now (taking a discount of $5)
rather than worrying about being paid in 3 years. That's the "time
value of money".
After
Sally accepts your offer, the next thing you do is simply fax or
mail me some forms. (Again, this is explained fully in my course).
You are then ready to start on your next deal.
Remember,
you never have to meet anyone in person or even see the property.
Everything can be handled either by phone, fax or e-mail.
The
seller doesn't need to put up any money for the title work, appraisal
or closing costs. I will cover all those expenses.
I'll
take it from there. I'll set the process in motion and see to it
that a credit report is run, the appraisal is ordered, the title
search is done, etc.
We're
Ready To Close The Deal - And Give Sally Her Money
So within a few weeks all the necessary steps should have been taken,
the appraisal should have come back, title report should have been
run, etc. If Sally Seller has been up front and everything checks
out OK, we are now ready to give Sally her money.
At
closing Sally Seller gets her $70,000 cash. Bud Buyer will now pay
the investor instead of Sally every month for the next 29 years.
I'll pay you 50% of the profit, so immediately...
You Would Get A Check For $2,500.00!
Not too bad for a few hours of your time!
As
you can see this is a win/win situation for everybody involved.
We did Sally a favor by giving her the cash she wanted and we made
a profit.
You
made a profit for doing your part in finding Sally Seller and I
made a profit for doing my part by coming up with the money to make
the whole thing work. Everybody wins and everybody is happy!
That's
it for now. In the last lesson we'll do a recap so everything should
be crystal clear to you why brokering notes is so profitable.