Uncle Sam Giving Away Free Money to Invest in Real Estate Notes

Sound unbelieveable? It is real!

More and more note investors nationwide are quietly scooping up piles of cash the government is giving away to reimburse note investors for reducing the UPB (unpaid principal balance) of the loans they own.

Why?

Under the *Making Home Affordable program, the Hardest Hit Fund was formed with the goal of keeping home owners in place when they can afford the payments of a modified loan. Administered by the Treasury department, The Hardest Hit Fund is slated to help millions of homeowners across the country by reimbursing the note holder up to $25,000, dollar for dollar, to reduce the loan balance. Here is an example:

You buy a non-performing 1st lien note for $10,000 with a UPB of $50,000. In the past, the house was worth a lot more, but now it is worth $25,000.

You learn that the home owner went through a tough time but has now regained employment and qualifies for a $25,000 loan on the property.

The home owner is committed to the property and wants to stay because their kids are still in school, they love the community, and they don’t want to move. They would be very grateful if you as the note holder would permit them to pay you monthly payments to stay in the home.

So you decide to reduce the unpaid principal balance by $25,000.

You have an attorney draw up a modified mortgage loan agreement with payments coming to you for 15 years on the $25,000 loan at a market fixed rate.

You then have the homeowners sign up for the Hardest Hit Fund program and have them send in the paperwork. (Each state has its own information portal, just Google the state).

Ok, so let’s review what has happened so far.

You bought a loan for $15,000.

You reduced the principal balance by $25,000.

You are receiving payments for 15 years on a $25,000 loan.

AND………………..drum roll please………….

The US government sends you a check for $25,000!

Essentially you are collecting payments on a free note for 15 years.

But there is more….

After you collect on this loan for 4 months, you can sell it to Fannie Mae.

That’s right. Fannie Mae will pay up to 115% of the market value of the home for the note that you have been collecting on for only 4 months.

Why you ask?

Fannie Mae loves performing loans. There is a huge market for them. And if you want to sell to some other buyer, you can. Many hedge funds will buy them as well.

But Fannie Mae is a great buyer for you because they do not discount it. They will pay full price for the note up to 115% of the value of the home. Why are they so generous? The same reason you like to be a note holder. Do you remember the law of 72? If a loan is written at 6% interest, you double your money every 12 years. 6x12=72. Fannie Mae knows this formula as well!

FANNIE MAE TEACHES YOU HOW TO SELL TO THEM

Let’s recap again…

You paid $15,000 for a note.

You got paid $25,000 by the US government for reducing the UPB.

You can collect on this loan for 15 years or you can sell it after 4 months of payments to Fannie Mae for $25,000.

If you decide to sell it to Fannie Mae, you will receive, in total, $50,000 for your initial investment of $10,000. You have a return on investment of 500% in less than 6 months which equates to 1000% on an annual basis.

It can’t get better than this!

Being a note buyer of non-performing loans is an exciting and profitable way to create win-win solutions today. Smart money investors quietly diving in and buying up loans so they can modify them and enjoy cash flow and generous pay days.

If you have been trying to build wealth in an old way that is not working well right now, why not consider non-performing notes? We offer you the education you need to learn how.

Go to RealEstateNoteInvestor.com or SmartMoneyVision.com to find out how to build a future by being the bank.

*Quoted from MakingHomeAffordable.gov

Early in 2010, Treasury announced that the Hardest Hit Fund® would provide more than $7.6 billion in aid for homeowners in states hit hardest by the economic crisis. Since then, state housing finance agencies have used the fund to develop programs that stabilize local housing markets and help families avoid foreclosure. Hardest Hit Fund programs complement the Making Home Affordable Program but are not limited to homeowners eligible for Making Home Affordable.

Hardest Hit Fund programs vary state to state, but may include:

·    Mortgage payment assistance for unemployed or underemployed homeowners

·    Principal reduction to help homeowners get into more affordable mortgages

·    Funding to eliminate homeowners' second lien loans

·    Help for homeowners who are transitioning out of their homes and into more affordable places of residence.

In total, $7.6 billion have been allocated to 18 states plus the District of Columbia. If you live in one of these states or DC, contact your housing finance agency's program office:

·    Alabama

·    Arizona

·    California

·    Florida

·    Georgia

·    Illinois

·    Indiana

·    Kentucky

·    Michigan

·    Mississippi

·    Nevada

·    New Jersey

·    North Carolina

·    Ohio

·    Oregon

·    Rhode Island

·    South Carolina

·    Tennessee

·    Washington D.C.

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Brian Netzel has been a real estate and note investor since 1982 when he bought his first rental property on his public school teacher salary. He is now focusing on turn-around projects using distressed assets nationwide.

Brian Netzel is the acquisition manager for the private equity firm Inspired Capital Partners and the founder of SmartMoneyVision.com and RealEstateNoteInvestor.com which train investors to apply smart strategies that work in today’s real estate market.