Real Estate Profits the Easiest Way Possible

 From Zero to $10k per month…Wanna know the Secret?

Become an expert in the discount mortgage market.

The business of flipping discount mortgages requires some easily acquired knowledge and skills but requires little or no cash. That is one of the many reasons the discount mortgage business requires serious consideration.

Let me first explain what a mortgage flip is for those of you who are not familiar with this concept.

Step #1–Find someone who has sold a property and as part of the transaction has taken back a mortgage. For any number of reasons (probably because you told them it was possible) they are now willing to sell that mortgage if they can end up with some cash.

Step #2–Find a buyer for that mortgage.

Step #3–Facilitate the transaction.

Step #4– Pocket the difference between what the seller wanted and what the buyer would pay. This may be somewhat simplified but there really is not a lot more to it once you know what you are doing.

Go with a Pro

I highly recommend that you flip loans only to professional institutional mortgage buyers. There are several reasons for this. Professional buyers put up all the money, do almost all the work and take all the risk. As far as I’m concerned that is all the reason you need to be in this business. The discount mortgage business has dramatically changed in the last few years when more and more institutional buyers entered the market. My best guess is that my primary institutional sources are buying in the range of 40 million dollars worth of mortgages per month.

Some of the commercial buyers make you conditional offers on the loans you bring to them, as long as you provide them with information such as loan amount, terms of the loan, number of payments made, number of payments remaining, etc. None of this is very difficult.

When the loan seller accepts your offer (what the note buyer has offered less your profit), it is now your job to collect the necessary information such as copies of the mortgage, the note, settlement sheet, etc. After you have collected the necessary information the commercial buyer then takes over and does all the things you do not know how to do. They order credit reports, do title searches, order appraisals, prepare all the settlement documents and a lot of other things.

Best of all they fund the transaction and pay you the difference between what they offered for the loan and what you offered the loan seller. For example, if they were willing to pay $100,000 for a mortgage and the note seller was willing to accept $95,000 your profit would be $5,000. They really do not care how much you make. I suggest that you remain reasonable, do not try to get rich on every deal and you will make your fair share of transactions.  My expected minimum profit on most notes is $2k, but every note is a bit different, therefore this number is by no means carved in stone. The important part is that everyone gets what they want; The seller gets a pile of cash, the buyer gets a nice discount on the note, and I receive fair compensation for my time and efforts.  A true Win - Win - Win.

When Things Go Awry

Things do not always go as planned. There are instances when the institutional buyer discovers that there are problems with the transaction. These problems range from innocent mistakes to outright fraud by the note seller (No…Really..? Say it ain’t so!).

 What happens now? Who gets stuck with all those expenses that were incurred along the line when the deal breaks down?

 Guess what! The commercial note buyer does, as long as they agreed to this in advance. Now that is really a good deal!

Another recommendation I would make is to start this business part time. This is a business that has a way of growing slowly but steadily if you will just stick with it. Starting part time has a way of reducing the pressure and the need of immediate results. In this business instant success is the exception and not the rule regardless of what some of the TV gurus would lead you to believe.

Getting Started

Let’s talk about what you need to get started in your discount mortgage business. There is one absolute necessity that you cannot do without and that is a telephone. I do not know how you could run a discount mortgage business without one.

 What I am really getting to here is all the things you do not need to start your business. I have seen many people pay big money to buy into a business or franchise opportunity but that is often only the beginning. There may be many additional necessities to operate that business. A location to operate the business may be needed which can be costly and may obligate you for a long period of time whether your business is successful or not. You may be required to stock inventory, buy equipment, hire people, etc.

I have run my discount mortgage business for years without taking on any of these obligations. If you get a letter from me I was the one who licked the stamp. I have no employees, no inventory and very little equipment. Besides a phone, which is a must, you should have an answering machine (unless you’re always by the phone), and a fax machine (Most computers will send faxes for free, and there are a few reliable online services that will convert incoming faxes to your email for a small monthly). You can literally run this business from a card table in a rented room where you are living.

This business offers tremendous freedom. I work out of my house because it suits my life-style. I can roll out of bed when I want and I am at work. However, I also like having time with my family and that’s where I can use your help.

As the old saying goes; “If you’re not marketing your business, you’re not in business”.

The majority of my work time is spent locating new notes to broker.  This isn’t hard to do, but it is fairly time-consuming and I can still only reach a small portion of note owners…There are easily thousands of note holders who still don’t know that they can sell that note for cash because my ads haven’t reached them on the local level…but You can reach the ones in your area.

Standard commissions for a referred note start at $500 per closed note sale.  Decent money for a 10 minute phone call, or a small ad in your local shopper’s paper, don’t you agree?

Of course, once you’ve gotten a taste of this kind of easy money and followed a few note deals that you referred through to closing, you will likely feel confident enough to jump out on your own and start pocketing the whole broker fee. This is a good thing…and Pop will be there to help you along the way.  Fair and honest business  requires that everyone gets what they want or need, a Win-Win.

Send Pop a quick email Today for more details, and he’ll be happy to answer your questions.

JB “Pop” Stran

WVreps.com