Creating a Note for Own Purchase - Posted by Carmen

Posted by Stacy (AZ) on March 23, 1999 at 20:28:36:

John, I agree that paper and real estate go hand in hand. Since I’ve gone through your video course, every other strategy I study mentions paper at a cursory level, but I understand instantly. And I think I understand at a deeper level than most that have not gone though your course. The two, together, are more powerful than each taken separately. True synergy.


Creating a Note for Own Purchase - Posted by Carmen

Posted by Carmen on March 23, 1999 at 12:55:00:

I have not had much experience with notes, but am beginning to read and learn about this option. For the immediate future, I was intrigued by the possibility of creating my own notes for purchasing properties.

One questions:

Is it possible to create a “third party” note for a property you don’t own yet? (e.g. if you have a house under contract, can you offer owner financing, and create a note for it for the new buyer? Then close on the house, and immediately sell it owner financed, and sell the note at closing for a discount, then pay the original seller off and keep the difference?) This seems too good to be true.

Re: Creating a Note for Own Purchase - Posted by John Behle

Posted by John Behle on March 23, 1999 at 15:39:09:

You can arrange to do what you are talking about, but cannot create the note until the moment you own it. Just like real estate transactions, you could:

Arrange to buy the property
Arrange to create and sell the note
Arrange to sell the property under Seller Financing

Close to buy the property, create the note, sell the property and sell the note - all in the same hour at the title company.

It happens all the time.

Re: Creating a Note for Own Purchase - Posted by Carol

Posted by Carol on March 23, 1999 at 16:57:27:

John, I am also very interested in this. So far am winding my way thru the audio tape sets while awaiting the arrival of the rest of my “convention goodies” package.

Can I assume (!) that this will be covered

  1. in the above-referenced materials?
  2. in July when we meet under the old oak tree for 5 days?

This is all too cool.

The old oak was hit by lightening - Posted by John Behle

Posted by John Behle on March 23, 1999 at 17:20:23:

Wasted my favorite tree in two seconds. It may grow back, but it isn’t real symetrical or shady right now.

But, we will talk about creating paper at the bootcamp. It’s talked about in the videos, but the bootcamp will have more because the group is more real estate investment oriented.

Paper is the most fabulous tool to enhance and turbocharge real estate investment. Creating paper is a powerful group of techniques and one of the best ways to get good returns in today’s market in both reale estate and paper investment.

As I’ve mentioned, I can’t conceive of one without the other. Neither real estate nor paper would be half as exciting without what I’ve learned about each and the ability to look at both sides of the equation. Paper buys real estate, real estate buys paper, real estate creates paper and created paper buys real estate. One without the other is like a plane with only one wing.

Actually July is hot in Provo and SLC. Park City, Utah on the other hand (30 minutes away) is cooler - in many ways. We’re doing it up there. It has a night life much more suitable to this crowd than the ice cream parlors of Provo. Besides, I scheduled this over the Utah State Holiday of July 24th (the next day). Utah actually gets a bit rowdy that day. It would be worth staying over a day just to party.

Besides, the yard’s going to be torn up for a new fence, pool and waterfalls that are going in. Camping in mud gets old soon, though the mud wrestling could be fun.