All Forum Posts by: Mike Mitchell

Jay,
I've read some of your posts. You seem very knowledgeable about finance. I'll be glad to come to one of your courses. I've owner financed 9 properties in Texas using a Warranty Deed, Deed of Trust with Vendor's Lien and a Promissory Note. My top return is 32% and my lowest is 20%, these are all based on a 12% note from the buyer. These rates tend to not go down if Obama sneezes etc.. Out of the 9, I've only had to take one back and that was fairly easy. I don't see much discussion of the topic on the site, it seems that everyone is wanting to buy notes or make a quick few thousand on the flip of a house. There is ENORMOUS money to be made is creating notes with whatever is left of our retirement funds (by the way I've bought and sold 3 properties using a self-directed IRA- another overlooked subject). At this point I have no intention of selling any of my notes unless I see opportunity to leverage them into more.
Mike Mitchell

Jon,
I just finished listening to the course and completely agree with your concise and well-written review.
Mike

Does anybody have a deed in lieu of foreclosure form that they wouldn't mind sharing? :D
Thanks Mike Mitchell

I recently read some info. on this website. Does anyone have experience with it?

Hey All Cash,
Sorry to hear about the death of your cash cow, but you've got to mooo-von.
Sorry about the bad pun. Have you had success with the cheaper properties? I've had a pretty good run in the last 2 years with properties under 50k financed at 12%. So far they're all paying on time except for one. It used to bother me and then I did the math :lol:

Hey congrats All Cash. A lot of us enjoy your posts. keep it up

PNW,
I keep hearing that it's hard to insure a home with a wood roof (Jason, I know we're talking about siding but I have to get this off of my chest.)
In Lubbock, Texas I had no trouble insuring my house with a cedar roof. The cost is reasonable (Allstate is the underwriter).

There are several reasons to use cedar.
1. it is the prettiest material available
2. it breathes, making my house the coolest on the block. When I open my windows to ventilate, all I can hear is my neighbors' ac's. My neighbors use much more energy than I to try to cool their houses.
3. unlike assfault (woops) it can be recycled if it ever does fail, it will quickly disintegrate in the landfill. Manufactured shingles fill up our landfill. Every time it hails we have to start a new one. Think of it!
4. it survives hail much better than a "30 year" roof, which is only good until the next hail storm. My 15 year old wood roof has endured 3 major hailstorms. I chuckle as my neighbors replace their roofs more often than their cars.
5. It is a product that is "green" and is grown in many places around the US including Texas. Many places in our country are now requiring asphalt shingles with some silly notion that asphalt doesn't burn. It's made from petroleum which the arabs are real proud of right now.
Now I feel better and I'll go to sleep to the hum of my neighbors AC. My house is currently 72 degrees and I haven't turned on the AC since last Fall.
:D

Thanks flipper,
I'll give it a look 8)

Would anyone be willing to give us an example or two using actual numbers to show the profit potential of buying a note?

Hey gainesvillej,
I have done a bit of this using other peoples money through a self-directed IRA and making a spread on the interest rate. You're right. There's a lot of money out there and not much in the way of returns in the stock market right now.