Posted by John Behle on March 26, 1999 at 15:22:26:
How about “Brain equity”? I don’t know, maybe brains sweat, but it isn’t as messy - unless your head explodes.
Here’s some brain equity solutions:
THE PAPER TRADE - Create equity in a property by buying a note at a discount and then trading it at face value for a property.
THE DISCOUNT REFINANCE - Discount the existing private loans on a property and refinance to pull out free cash from your brain equity.
THE DISCOUNT SUBSTITUTION - If the private note holder won’t discount, find another note holder that will discount and then use a collateral substitution to free up the property and crank out cash. Just like the Discount Refinance.
NOTE ENHANCEMENT - Use one of over 117 techniques to improve the value of notes (loans, seller financing) that you own, control or can own and control.
LOAN RESTRUCTURING - You can make wonderful profits just by restructuring ugly financing on a property through negotiation or bringing in new consolidation financing.
PROBLEM SOLVING - Solve the problems on a property or the loans on a property and make one or the other more valuable. An example is getting a property re-zoned or straightening out boundary line disputes (made some good money on one of those last year).
With a note it could look like buying a defaulted note for a great price and then assisting the note payor to refinance or re-instate the loan - making it more valuable.
Whew, my brain’s sweating already.