In this powerpoint, Eddie Speed takes you through Note Investing 401. Take a look and let us know if you have any questions! http://noteschool.com http://facebook.com/noteschool

1. NOTE INVESTING
401 W. Eddie Speed
Founder of NoteSchool

2. Making Money from the Meltdown
Stick around for a free download and a
hard copy of my recently updated book:

3. Questions?
Stay to the End!

4. What is a Discounted
Note?
1,000
Eddie Speed
P.O. Box 1234
South Lake, TX

5. John Eddie signs
a note for
$1,000
John Doe 1,000John
receives
$850
Check
Cashing biz
receives

6. $100,000
360 Monthly Payments
at 10% interest
Payments of: $878
Buyer
TERMS OF AGREEMENT:

7. 2000 - 2007 2011 - 2014

8. Short Sales Completed, REO
Inventories & Primary Market
Delinquent Notes
50,000.00
1,050,000.00
2,050,000.00
3,050,000.00
4,050,000.00
5,050,000.00
2008 2009 2010 2012 2014
NPL
REO
Short Sales
Source: Compiled information from Lawler, Calculated Risk, Realtytrac,
Corelogic, Black Knight Financial Services

10. How Big is the Note Buying
Industry?
So far in just the first 6 months of
2015……
Over $8 Billion in
Assets

11. WHY NOTES?
The Surge of Growth Ahead!

12. Two Types of
Discounted Notes
Non-
Performing
Notes
Performing
Notes
Seller Financed
Re-performing
Non-Performing

13. Paths to
Property

14. REO's vs. NOTES
300,000 REOs
9 Million
Delinquent
Real Estate
Notes
Inventory of Opportunity

15. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Defaulted Note Cost 20%-50%
Non-Performing Notes

16. Buyer
Defaulted Note?
Modify Loan
Deed In Lieu
Foreclose
Mortgage
NOTE

17. REAL ESTATE

18. EstablishAs-ISValue
Price Note
Cost of Note
What % ?
Investment to
Value Ratio

19. My Target For Defaulted Notes
What % ?
Investment to Value Ratio = 50%
Investment to Value Ratio = 20%
EstablishAs-ISValue

20. REONon-Performing
Loans 80%-90% of
Value
20%-50% of
Value
More Profit
with
Less Risk!

21. Ways to Invest with Colonial
Individual
Notes
NON-PERFORMING NOTES
NON-PERFORMING
NOTE
CASE STUDY

22. Case Study Example
Property:
Stone Mountain,
GA
Current Market Value:
$100,000
FTC DISCLAIMER: While these case studies are REAL DEALS that my students have
closed recently, these results are NOT typical. As with all courses, you should not
expect to make this much money or any money with “how-to” advice.

23. NoteSchool
“Student”
Russ Brucks
Fort Worth, TX
Certified Note Investor
Purchased 4 NPLs
Within Two Months
FTC DISCLAIMER: While these case studies are REAL DEALS that my students have closed recently, These results are NOT
typical. As with all courses, you should not expect to make this much money or any money with “how-to” advice.

24. Paid $9,500 for Note
• 4/2, 1,800 sq ft
• $150K “Listing”
Comps
• Rent $1,250/mo
Stone Mtn , GA
“I didn’t need a calculator to pull the trigger on this
one!”
Total Cost approx $30,000
Property worth $100,000

25. Non-Performing Notes
REO Property
Foreclosure
Note or Cash or Rental
Stone Mtn , GA
Modify Deed in
Lieu

26. Own Note Without Having to Manage
ItLoan Servicer
• Collects Pmts
• Taxes / Insurance
• Borrower Work-out
• Foreclosure Mgt
Note Owner
Work done by
Who??
Borrower Delinquent on their Pmts

27. $50,000 Today 5yrs X $950/month
Realtor’s BPO says Mid $60Ks
But Sold for $100K (on terms)

28. Rented Out the Property
Located a local Realtor in the town
to find good tenants to pay
$1,250/mo

29. Front-Loaded Rental
Hired a Property Management Company
+

30. Marketed to a Cash Buyers List
With an intriguing offer: ½ Down, ½ Paid by Tenant
BuyThis!
$50KNow
$50KLater
An Out-of-State buyer from California
bought the front-loaded rental

31. Rent $1,250.00
Taxes $100.00
Ins $81.43
Mgt Fee $125.00
Total Expense $306.43
Net Available for P&I $943.57
Terms of Sale
Sales Price $100,000
Down $50,000
Note Amount Int Rate Pmt Term
$50,000.44 5.00% $943.57 60

32. Property Cash Flows Monthly
Jan 2014 Dec
2018
Cash Today
5 yrs of Monthly Pmts
$50,000

33. Property Cash Flows Monthly
Jan 2014 Dec 2018
Rental Income
Debt Service
Paid From Rent Income

34. Two Types of
Discounted Notes
Non-
Performing
Notes
Performing
Notes

35. What Determines Note’s Value?
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Performing Notes
Re-Performing Note &
Seller Financing
Cost 70% - 90%

36. Bob Bryenton
Asheville, NC
Equity Trust Note Investor: #2

37. Property:
Applegate, MI
Current Market Value:
$90,000
Case Study: #2
SFR – Owner Occupied
3BD/1BA, 2026 Sq Ft.

38. Value$90,000
Relevant Property Details

39. $30,930
129
Monthly Payments
Mortgage Note
At 9% interest
Monthly Payments of:
$375
$27,136
For This Note

40. Mortgage Note
$30,930
@ 9% Interest
Pmt / $375
129 Mos Remain
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV
$48,375
129
Times!
12% Yield
TAX FREE
$27,136

41. My note I own in my IRA
acct
W. Eddie Speed
Founder of
NoteSchool

42. Case Study
Property:
Memphis, TN
Current Market Value:
$220,000

43. Case Study
Terms of Note
$160,316
6% Interest
Pmt / $1,081
271 Mos Remain
Value$220,000
73% of Property Value
Loan to Value ratio

44. Remaining Loan Balance
Negotiated to purchase the note for $105,000
$160,316 @ 6% Pmt / $1,081 271 Mos Remain
271 pmts

45. First Mortgage Note
$160,316
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV
Total payback $292,951
271
Times!
271 pmts

46. Remaining Loan Balance
271 pmts
Negotiated Note for $105,000
$160,316 @ 6% Pmt / $1,081 271 Mos Remain
Paid $104,900
143 pmts X $1,081 = $156,745
Sold Partial: 143 pmts

47. Partial Purchase
Portion Sold
$104,900
127 Mos
Retained in
my IRA
account
143 Pmts 128 Pmts

48. Remaining Loan Balance
271 pmts
Investor Pays $104,900
$160,316 @ 6% Pmt / $1,081 271 Mos Remain
143 pmts 128 pmts
I Pay $100

49. 143 mos
Loan Servicer
Monthly
Pmts
Note Owner

50. Financial Deal Architect
• Case Studies (from actual deals)
• Building Cash Flows
• Sourcing Capital
• Creative Finance
Gold in Notes
One-Day Workshop

51. Gold in Notes
One-Day Workshop
Saturday June 20th
Time: 9am – 4pm
• Tuition $49
Hotel Info Here
Address 1
Houston, TX
Questions: Call toll free
(888) 980-9239

52. Questions?

53. Go to: noteschool.com/free-book
Eddie Speed
eddie@noteschool.com 214-555-1212
REIAHOUSTON

54. Go to: noteschool.com/free-book