All Forum Posts by: Tracy Z. Rewey

I'll second @Chris Seveney on the potential tax hit without any depreciation benefit of holding brick and mortar investment real estate. One excellent strategy for getting around that is to buy the notes for long term holding in a self directed IRA, Roth, HSA, 401k, or other tax advantaged vehicle. Then the interest income is tax deferred or tax free depending on the type of account.

Originally posted by @Ryan Woods:

@Tracy Z. Rewey

Please send to me as well!

Sure thing!

Originally posted by @Jessica Worwell:

@Tracy Z. Rewey I would love the 21 tips as well! I’m also reading up on note investing through Notes Direct who provides webinars and tutorials through YouTube and their website. Definitely would love to learn as much as possible. Thank you in advance. 

Welcome to the world of note investing!  I sent you a PM.  Feel free to let me know if you have questions.

Originally posted by @Chris Seveney:

@Tracy Z. Rewey

I am working with a company right now that tracks foreclosure timeframes and costs per state AND per attorney. So you would know the average timeframe by state AND timeframe in that state by attorney. The issue is its for large scale banks only at this time and trying to see if there is a way to have it be created for more main street investors.

In regards to the original post, yes having properties vacant and getting verification of vacancies is one of the strategies we use to try and shorten timeframes.

I've used the timeframe trackers from Realty Trac, Fannie/Freddie servicing sites, and others but haven't seen by attorney.  That information would be gold @Chris Seveney

Originally posted by @Herbert Lewis:

Originally posted by @Tracy Z. Rewey:

Welcome to the world of note investing @Herbert Lewis  How about an oldie but goodie?  "Invest in Debt" by Jim Napier.  You can't get "Pensacola Prime" any more but the basic concepts still apply.  I have 21 Tips for New Note Investors that I'm happy to share as well.  

Hi Tracy,

Please PM me the 21 Tips. I am looking to learn as much as I can about note investing. Thank you  

Sent!

Welcome to the world of note investing @Herbert Lewis  How about an oldie but goodie?  "Invest in Debt" by Jim Napier.  You can't get "Pensacola Prime" any more but the basic concepts still apply.  I have 21 Tips for New Note Investors that I'm happy to share as well.  

Here is an example of a deal I did that I'm using in my upcoming exit strategy presentation.

The Balloon Split Partial

Mobile/Land Seller Financed 1st: $54,950

Terms: 9.25% interest, $452.06 per month

All Due in 10 years (120/360)

Balloon of $49,358.75 +/-

———

Seller Sells Full (All payments + Balloon)

Investor Purchases Partial

(Monthly Payments + $33,818.22 of balloon)

We Retained Back-End Portion of Balloon ($15,540.53 in 108 months)

Note paid off.  We made a bit a closing and with some time and patience received the $15k payoff when the balloon came do (without any of our own funds at risk).

It is nowhere the size of the deals @Jason Dillard or @Aaron Caddel are discussing but you repeat enough of them and they will add up.  They are also a more approachable size for someone starting out.

Originally posted by @Steven Quinones:

Mind blowing on this topic!!! I have lots to learn about financing different deals. 

@Tracy Z. Rewey I'm a new investor in tampa/brandon area, may I connect with you to learn more about this topic?

Thanks

Sure thing Steven.  You can message me here on BP or via email.  We're in the Clermont/Groveland area.

@Aaron Caddel Creating cash flow through paper is a solid strategy as a buyer, seller or investor.  In 2019 over 23.9 billion in seller financed paper was created (and that just counts recorded owner-carry, first position, over 30k).  If you add in private lending to investors and the paper banks sometimes liquidate the numbers are substantially larger.  You can then liquidate paper through resale on the secondary market, exchanges, or partials as you mentioned.  Other strategies are wraps, sub 2 with seller financing, hypothecation (borrowing against the cash flow instead of selling with partials), and using a first and second.  So many great options depending on the situation.  On the balloon notes I wanted to add that there are more investors that like the front payments or front payments and part of the balloon (over just the balloon).  There are also potential additional qualifying issues if you are using balloons when selling to buyers that plan to live in the property due to the Dodd Frank Act implemented in 2014. There are some exempt transaction but if you plan to create paper regularly and are dealing with owner occupants it is a good plan to use a licensed MLO that also understand seller financing. 

It should be interesting to a seminar goer if they are looking for more advanced strategies.  If all they know is fix and flip, wholesaling, or buy, hold, rent it will take overcoming some misconceptions.  We are seeing quite a bit more interest in the topic as well!

I've started using Accurate Group lately for both BPO and Title.  They are nationwide and have been providing services to HELOC providers for years.  They have recently started marketing to the world of note investors.  So far I have been impressed with their coverage, prices, and responsiveness.