This document provides information about buying real estate notes as an investment opportunity. It discusses the types of discounted notes available, including performing, non-performing, and re-performing notes. Notes can be purchased at discounts of 20-90% of their face value, providing the potential for high returns. The document uses examples of specific notes to illustrate how investing in notes can generate tax-free monthly cash flow and double-digit returns over the life of the note.

1. Profi%ng
from
America’s
biggest
Note
Opportuni%es
BUYING REAL ESTATE NOTES
The
Ul%mate
Investment
Cash
Flow

2. My Purpose!

3. Questions?
9:00
PM
in
the
back
of
the
room
Stay
to
the
End!

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

5. Core Things Covered
• Understanding The
Discount Note Industry
• Unprecedented
Market Conditions
• How Notes are Priced
• Outsourcing the work!

6. Who Are We?
© Copyright CFG, LLC 2014. All Rights
Reserved.

7. © Copyright CFG, LLC 2014. All Rights
Reserved.

8. What is a Note?

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

10. John Eddie signs a
note for
$1,000
John Doe 1,000
Sells the Note
John
receives
$850
Check
Cashing biz
receives
at a discount

11. $100,000
360 Monthly Payments
at 10% interest
Payments of: $878
Buyer
TERMS OF AGREEMENT:

12. Buyer Seller
Mortgage Lender

13. STOCK
MARKET
YOUR
MONEY
(ANXIOUS
MONEY)
X
Market
Crash
September
29,
2008
$91
BILLION
LOST
OUT
OF
STOCK
MARKET
IN
2
DAYS
Where
is
it
going?

14. 2000
-­‐
2007
2011
-­‐
2014

15. 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

16. PART
OF
$1.01
BILLION
VINTAGE
DEBT
PACKAGE

17. Feb.
13,
2015:
"Three
of
the
naUon's
largest
mortgage
lenders
have
put
sizable
packages
of
nonperforming
and
reperforming
mortgage
loans
…
worth
a
combined
$4.5
billion.
Bank
of
America
has
put
up
approximately
$2.56
billion
worth
of
delinquent
debt
for
sale…
CiUgroup
has
put
up
$1.8
billion
worth
of
reperforming
mortgages
for
sale,
and
JPMorgan
Chase
is
looking
for
a
buyer
for
$143
million
worth
of
nonperforming
mortgage
loans…"
PART
OF
$4.5
BILLION
DEBT
PACKAGE

18. Over
$1
Billion
in
March:
“This
is
something
that
we’re
going
to
see
on
an
ongoing
basis
for
a
period
of
Ume”

20. MAJOR SHIFT FROM REO
TO SELLING NOTES
REO’s
NOTESREO’s
NOTES

21. WHY NOTES?
The Surge of Growth Ahead!
NOTES

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

23. 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%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Performing Notes
Re-­‐Performing
Note
&
Seller
Financing
Cost
70%
-­‐
90%
Defaulted
Note
Cost
20%-­‐50%
Non-Performing Notes

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

25. Paths to
Property

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

27. 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

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

29. Non-­‐Performing
Notes
Modify
Deed
in
Lieu
Foreclosure
©NoteSchool
2013

30. REAL ESTATE

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

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

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

34. BUYERS BUY HOUSE

35. SIGN NOTE & MAKES
PAYMENTS

36. PAYMENTS TO THE BANK

37. BUYER PAYS OFF
MORTGAGE

38. If
Not
paid
PAYMENT DEFAULT

39. If
Not
paid
PAYMENT DEFAULT

40. BANK BUNDLES BAD
MORTGAGES

41. Mortgage Information
HEDGE FUNDS CREATE
TAPES

42. Mortgage Information
TAPES SENT TO INVESTORS

43. Agreed Upon
Price
INVESTOR DUE DILIGENCE

44. SIGN CONTRACT WITH HEDGE
FUND

45. New note
owner
HEDGE FUNDS CREATE
TAPES

46. New note
owner
MODIFICATION = CASH FLOW

47. New note
owner
4 EXIT & PROFIT
STRATEGIES

48. Free Book: Making Money
from the Meltdown
Text for an
immediate download
and you will receive
a hard copy by mail.
Text
(817)
402-­‐2410
Code:
IMN415
Or go to

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

50. 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%

51. Bob
Bryenton
Asheville,
NC
Case Study

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

53. Value$90,000
Relevant Property Details

54. $30,930
129
Remaining
Payments
Mortgage Note
At
9%
interest
Monthly
Payments
of:
$375
$27,136
For
This
Note

55. 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

56. Own Note Without Having to Manage It
Loan Servicer
• Collects Pmts
• Taxes / Insurance
• Licensed & Compliant
• Borrower Work-out
Work done
by Who??
271 Months

57. Term of Note
Loan
Servicer
Monthly Pmts
Note
Owner
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEP
OCT
NOV
Payment

59. How to Retire Tax Free Forever
TAX FREE!
AFTER
TAX

60. $110,000Sale
Terms of Sale
$110K Sales Price - $10K Down Pmt - $100K Seller 1st Lien

61. $100,000
360
Monthly
Payments
Mortgage Note
at
10%
interest
Monthly
Payments
of:
$878
You
Pay
$70,000
For
This
Note

62. Mortgage Note
$100,000
@
10%
Interest
Pmt
/
$878
360
Mos
Remain
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEP
OCT
NOV
$316,080
360
Times!
14.8%
Return
You
Pay
$70,000

63. 100,000 @ 10% Pmt / $878 30 year term
Loan Amortized
Jan 2014 Dec 2044
360 pmts
$30,000
Note bought at discount
Yield = 14.8% annually
Roth Buys Entire Note for $70,000

64. $70,000
360
Monthly
Payments
Hard Money Loan
Monthly
Payments
of:
$878
What
is
the
interest
rate
for
this
Note?
14.8%

65. Partials are Like Pizza Pies
$6

66. Partials are Like Pizza Pies
$2
$2 $2

67. 360 pmts
Note Term Bought or Sold

68. 360 pmts
front part last part

69. 100,000 @ 10% Pmt / $878 30 year term
Loan Amortized
Jan 2014 Dec 2044360 pmts
TIMELINE
Roth “Flips” Front End
to Another Investor
Roth Acct owns
“back” Pmts
Roth Buys Entire Term

70. Sell Partial & Own Back-End of Note
$69,900
132 Pmts
Sold to Investor
TIMELINE
$100 in Roth Acct
You Keep
Remaining 228
Pmts
100,000 @ 10% Pmt / $878 30 year term
10%
Return
HUGE
Return

71. THE
NEXT
STEP
Buy
Notes,
Be
The
Bank

72. What it Takes to Buy
0
2
4
6
8
10
12
Minimum
Standard
Knowledge
Interest
Time

73. 2 Advanced
Note Classes

74. Tuition $2,000
3-Day
Live Class
Family or Biz
Partner FREE

75. On-Demand Training Course
14 Modules (3 days worth of training)
Learn easily At your
own pace

76. 3-day
Live Class
Case Studies of Authentic Deals

77. Each
class
has
10
+
Events
Annually
Las
Vegas,
NV:
May
15th
–
17th
Irving,
TX:
June
5th
–
7th
Charloqe,
NC:
May
22nd
–
24th
San
Francisco,
CA:
May
29th
–
31st
Atlanta,
GA
June
26th
–
28th
2015:
Classes
held
every
2-­‐3
weeks

78. Gold in Notes
One-Day Workshop

79. Gold in Notes
One-Day Workshop
Saturday May 9th Time: 9am – 4pm
• Members:
– $89
• Non-Members:
– $99

80. Financial Deal Architect
• Case Studies (from actual deals)
• Building Cash Flows
• Sourcing Capital
• Creative Finance

81. Your IRA Buying Performing
Notes
• Building retirement acct as your own mini-bank
• Phenomenal leveraging techniques with notes

82. Questions?
9:00
PM
in
the
back
of
the
room
Stay
to
the
End!