Ad For "How To Reduce Your Mortgage" ? - Posted by Michael

Posted by John Behle on October 20, 1998 at 19:57:18:

The ad could work, but the first thought that hit me was to stay away from Seniors until you are really comfortable with the business (I don’t know your experience or level or expertise). They wouldn’t be the crowd to “practice” on. Plus, it can be hard to get something through their advisors if there isn’t a good track record. Seniors aren’t the only ones with equity though.

When it comes to financing, I look at it real simple. I borrow money against the notes and stand behind them. If I would have the slightest hesitation with the note, I will not buy or finance it.

You may hear others say “do not broker notes to private parties!” I agree absolutely. The dangers and risks are very real. I don’t broker, I borrow secured by the note. It’s a simple “hypothecation” - the note being purchased is the collateral for the borrowed funds. I collect and guarantee the note. If the note went bad, I would still make payments. Once you have a few investors into individual note deals, then you can roll them and the notes into a “Fund” that can take the form of an LLC, LP, Corporate Debenture or other forms. It can then grow from there into a very powerful form of private mortgage insurance, but that is way beyond this discussion.

Ad For “How To Reduce Your Mortgage” ? - Posted by Michael

Posted by Michael on October 20, 1998 at 18:59:00:

Would this work as a “Free Article” to get responses,
especially from the senior crowd which may be looking
for cash flow to accommmodate their current needs? Plus,
seniors are more apt to have equity built up in their
properties.

Or, just stick to finding a few investors for notes.
But is one or two sufficient to genrerate enough cash
every month?