Downloaded 11 times
Uploaded byNoteSchool
John murray version 3 14
This document discusses investing in mortgage notes. It provides details on re-performing and non-performing notes, including typical purchase prices which can range from 60-80% for re-performing notes to 10-40% for non-performing notes. An example is given of purchasing 271 payments on a $160,316 note for $105,000, representing a 12.15% yield. Benefits of purchasing notes through a Roth IRA are also mentioned.
John murray version 3 14
- 2.
- 3.
- 4. 1,000 Eddie Speed P.O. Box1234 South Lake, TX
- 5. John Eddie Owes $1,000 CheckCashing Service John Murray 1,000
- 6.
- 8. What Determines Note’sValue? Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Good Payment Record Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Bad Payment Record Re-Performing Note Cost 60% - 80% Non-Performing Note Cost 10% - 40%
- 10. Source: NAR NationalAddress 2013 Cash Buyers
- 17. REAL ESTATE As-Is Valueof Collateral
- 18. EstablishAs-ISValue Investment to ValueRatio = 85% Investment to Value Ratio = 20%
- 24. Property: Memphis, TN Current MarketValue: $200,000 “Re-Performing Note”
- 25. Non-Performing Note Non-Performing Note Eddie’s ROTH IRA Account Bank Sellsloans to Hedge Fund Non-Perfoming Note Non-Perfoming Note Profits from Note grow Tax- free inside Roth IRA
- 26. 271 pmts Negotiated Pricefor Entire Note of $105,000 $160,316 @ 6% Pmt / $1,081 271 Mos Remain
- 27. Buys 271 Pmts NoteAmortization Schedule Fund$105,000 Note bought for $55,316 discount Note Interest Rate = 6% Yield = 12.15% $160,316 Balance $55,316
- 29. 271 pmts Negotiated Pricefor Entire Note of $105,000 $160,316 @ 6% Pmt / $1,081 271 Mos Remain
- 30. Buys 271 Pmts NoteAmortization Schedule Fund$105,000 Note bought for $55,316 discount Note Interest Rate = 6% Yield = 12.15% $160,316 Balance $55,316
- 31.
- 33. HouseValue$200,000 Cost of Note IRAInvested $105,000 52% ITV
- 36. Non-Performing Notes Modify Deedin Lieu Foreclosure 40% 40% 20% ©NoteSchool 2013
- 37. Non-Performing Notes Modify Deedin Lieu Foreclosure 40% 40% 20% ©NoteSchool 2013
- 39.
- 40.
- 41.
- 42. EstablishAs-ISValue Investment to ValueRatio = 50% Investment to Value Ratio = 20%
- 44.
- 46.