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Be the Bank Through Note Investing

In 2018 the amount of seller financing through non-traditional banks (note investing) hit 24 billion dollars. That’s a lot of notes! Note investing is genuinely the best cashflow investment as you don’t have to deal with tenants, trash, or toilets. 

Today’s Guest, Nick Legamaro, also known as “The Note Guy,” has been note investing for almost 20 years. He focuses on providing his clients with high-yield, low risk, turn-key real estate investment notes, secured with carefully selected residential properties throughout the United States. 

During today’s episode, we cover a lot of ground. Nick provides details on the process and profits of real-world note deals. He tells an amazing story of his first note deal when he had no idea what he was doing, but it worked, and that started him on his profitable journey. And, you don’t want to miss the bank mortgage secrets that they don’t want you to know. 

Key Takeaways

  • Seller financing as an investment strategy
  • Why not working with banks is profitable
  • How Nick got started in note investing (great story!) 
  • The importance of continuous self-education and attending Masterminds
  • Working with lenders
  • Creating cashflow with the note model 
  • Dissection of a $100K note deal
  • Hard money lending
  • Hypothecation: What it is and how to use it
  • High ratio deals
  • How to use the first and second lean strategy to make more money
  • Expert advice on how to evaluate, buy and create notes
  • The factors involved in being a small-cap lender
  • How to buy a note portfolio
  • How to create a note that produces a higher yield than a rental property
  • Using a third-party service company that conducts business between the lender and borrower
  • How to handle a default situation and still make money
  • Note deal structure
  • It’s a seller’s market; how to take advantage 
  • What the banks won’t tell you about mortgages (it should be criminal!)
  • Negotiating higher sales price with sellers with favorable terms
  • Note investing and the positive impact on your taxes

Resources

USA Note Pro

Learn the Value of Your Mortgage Note (educational white paper)

How to Sell Your Mortgage Note (educational white paper)

Protect Your Mortgage Note (educational white paper)

Selling Part of a Mortgage Note (educational white paper)

Book Recommendation

Mortgage and Loan Payment Guide

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