All Forum Posts by: Brett Burky

We don't support partials I am wrong about this. 

@Brett Burky, Paperstac does sell partials, correct? 

@Brett Burky

I was looking into make.com as it looks pretty intuitive

We use descript and a few other programs as well - have to check these out too.

@Brett Burky you cannot be replicated. One and only. Unique just like everyone else. 

Wow ... thanks so much for that info. I was using the GIS, google view, and Propstream combined to double check the location of the lot and was also checking liens, zoning, flood zone, all that. However I never thought about the fact that it could have any of that in person so thanks for informing me. 

I am planning on buying in FL and wanted to ask realtors to check these lots in person once I do my due diligence so I don't have to make a 2-4 hour trip. However, I will definitely consider picking some cities closer than where I was initially planning on investing to check it out myself. Thanks so much again.

I’ve used this one a few times, but not as often as I probably could have.  It works best nowadays with commercial property that has assumable mortgages.  It goes something like this.

You find a commercial property for sale in a good location that’s currently vacant (so that you’re not paying for current cash flow) and that has an assumable mortgage at a relatively low rate. So for example a property you buy for $500,000 with a $300,000 assumable mortgage note with an interest rate of 5%.  You buy  the property paying $200k down.  I find that selling owner user commercial property with 20% down and owner financing the balance is quite easy and usually results in at least a few quick offers.  You sell the property for the same $500K to an owner user with $100k down and carry back a wrap note of $400k at 10%.  If the note is a 20 year term and the underlying  note the same, you’ve got $100k invested with an annual return of about 22%.  Prepayment penalties can be used to insure against an early payoff.

The times I’ve used this technique to create high yielding note I enhanced the return by being able to sell the property above the price I paid.  Of course nothing goes exactly as planned; in one such deal the borrower was having trouble making payments and had an offer to sell which required me to carry back a second mortgage.  I eventually got paid on the second.

To. Utilize this technique the following is required

1. Knowledge of the real estate market as to property type and location 

2. Understanding of time value of money

3. Understanding of mortgage notes

4. Ability to market the property

5. Capital for down payment 

6. Long term investment capital and “emergency” funds to endure when things don’t go as planned.

7. “Guts” to do this kind of deal

8. Time to engage in an active real estate technique

Ok, I’ve stated this many times before and will state it again.  You do not start by engaging into a mentoring program.  You start by educating yourself as to real estate principles, real estate finance, and real estate law.  Only AFTER you become well versed in these three areas do you consider education in specific techniques.  Because people skip this and jump right to techniques, we have a huge FAILURE rate of people wanting to be real estate “operators”.  Notice I said “operators”, not investors.  Because most of the techniques that “create” value require a LOT more than just investing.  

I’m eager to hear about techniques others used to “create” a high yield note or investment 

Hello, I have been educating myself on mortgage notes, an I am ready to buy. It is very difficult to find them on websites other than paperstac. I also would like a service loan provider or some type of assistance to walk me through the first process, to understand the business and become more comfortable as I continue my note investing. Is there any advice you can give me?