Is $1,000,000 A Month Still Practicle? - Posted by MN~Chicago
Posted by MN~Chicago on March 23, 1999 at 22:21:02:
John:
I have spoken to someone whose house is
fully mortgaged at $400,000. She is willing
to go through the process of buying notes
to use as substitution for collateral as a
means for lowering her payments.
My explanation was to buy notes, averaging
a 17% yield, and get a new mortgage at a
much lower cost in order to pay for the
notes purchased.
The income from the notes would pay her
current mortgage payment, and the new, lower
mortgage to be paid would be lower each month
and represent an out-of-pocket savings.
Her next question was, once having done that,
why not do it again and again until she had
no mortgage to pay? Sharp lady.
I also discussed your “fun with bankers” idea.
She talked to a banker friend who was willing
to help. The three of us are having lunch
next week to see where this can go.
If the banker is willng and able, I need to
be able to generate some note purchases very
quickly, which prompts my posted question.
You have frequently stated that agents are
the best source for notes. I would like to
use a focused rifle-shot approach to develop
a note business. Is the $1 million/month
approach still possible? If in using it, are
yields of 18%-20%, on average, realistic?
Precisely what kiind(s) of question do I
need to ask an agent to get the MLS downloaded
to hard disc? I have discreetly asked a
few, but none were willing to pursue it.
Do I need to go to a broker’s office with an
agent at night to get this done? I have an agent
who may be willing to try, but I am not quite
sure how to instruct the way to do it.
Related to this effort, where does one look/find
note portfolios for purchase? What kind(s) of
person has to be sought out to buy portfolios?
Also, do you still maintain your note network?
Many thanks,
Michael Noonan